The Dow Jones industrial average fell 5.6% in 2018, its worst performance since the 2008 financial crisis. However a few star names have managed to outperform, including Merck (MRK), Microsoft (MSFT), Nike (NKE), Pfizer (PFE) and Visa (V). Merck stock is by far the top Dow Jones stock of 2018. All five Dow stocks also S&P 500 index components as well.
XMerck Is The Top Dow Jones Stock
Merck stock increased a muscular 35.9% in 2018, nearly twice as strong as the next-best top Dow Jones stock of 2018. Shares rose 1.4% to 76.41 in the stock market today. Merck stock has moved back above its 50-day line as the Dow Jones rallied somewhat after Christmas. Merck stock is just 4% off its Dec. 4 peak of 80.19 and up 7.8% for the fourth quarter.
The Dow Jones stock has seen its relative strength line soar to a near 4-year high, continuing a powerful uptrend since early March. The RS line compares a stock's price performance to the S&P 500 index.
In October the Dow Jones drug giant projected earnings for the year to come in above analyst estimates. Merck also hiked its quarterly dividend by 15% to 55 cents a share. This month Merck agreed to buy Antelliq, which sells digital animal identification, traceability and monitoring solutions, for $2.4 billion.
Pfizer Stock Stands Tall
Pfizer stock jumped 20.5% in 2018. Shares got off to a slow start, but picked up steam after clearing a 26-week consolidation in late July, MarketSmith analysis shows. Pfizer stock hit 46.47, the best price since early 2001, after breaking out of a 7-week flat base on Nov. 30. That breakout failed amid the broader sell-off. Pfizer stock is now 6% off its high. Joining fellow Dow Jones drug giant Merck stock, Pfizer stock moved back above its 50-day moving average on Dec. 31.
Pfizer issued cautious 2018 guidance back in October despite topping Q3 earnings views after sales lagged.
The company makes top drugs such as Viagra, cholesterol fighter Lipitor, painkiller Lyrica and antibiotic Zithromax. Earlier this month the Dow Jones stock announced a deal with British pharma giant GlaxoSmithKline (GSK) to combine their consumer health divisions.
Microsoft Stock Overtakes Apple
It has been a long time since Microsoft has been able to look down at its fellow tech giant. But it was like 1997 once again for Microsoft stock, with a strong gain of 18.8% this year. That let Seattle-based Microsoft overtake the Silicon Valley giant's market-leading market cap. Microsoft stock, now worth $777 billion, lost 11% in Q4, but it passed Apple's market cap this month as the iPhone maker fell much further.
The Dow Jones stock reached a record price of 116.18 on Oct. 3, the same day the Dow Jones industrial average peaked. Microsoft stock held up relatively well, briefly attempting a breakout on Dec. 3, which turned out to be a short-term market peak. Shares found support at its 200-day line several times in Q4 before breaking that long-term level in late December. Microsoft stock hit a seven-month low intraday on Dec. 26 before rebounding with the market. It's now 12% off its high.
Microsoft earnings jumped 36% in the latest quarter, the best gain in five quarters. Revenue growth has slowly accelerated for the last three quarters. Credit Microsoft's big push into cloud computing services.
Nike Stock Just Does It Again
The world's largest supplier of athletic shoes and apparel staged a strong comeback for much of the year after a disappointing 2017. Nike stock ran up 18.5% in 2018, and that's 14% from its Sep. 21 all-time high of 86.04. The relative strength line has been choppy, but trending slightly upward, hitting a new high Dec. 21. Nike stock rose Monday to just above its 50-day. It's slightly under its 200-day moving average.
Back in June Nike turned a corner after easily topping views, with North American sales bucking three straight quarters of declines by ticking up 3%.
Visa Stock Charges Ahead
The credit card giant made steady gains through the third quarter and rose 15.8% in 2018. Visa stock tried to break out on Dec. 3, just like Microsoft stock, but then sold off sharply to an eight-month low. Shares are 12% from a high of 151.56 on Oct. 1. Visa stock's relative strength line has held up well.
Visa aims to be a dominant player in the digital payments market. So far the payments revolution has lagged in one key area: business-to-business payments. But it also offers a $1 trillion opportunity for payment stocks like Visa, rival network Mastercard (MA), Square (SQ) and PayPal (PYPL).
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The post This Is The Top Dow Stock Of 2018 — And It's Not Even Close appeared first on Investor's Business Daily.
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