Only 10 of 30 stocks are attractively valued blue-chip stocks making up the Dow Jones Industrial Average (DJIA) today. The other 20 range from being moderately overvalued to dangerously overvalued. Although historically the Dow Jones Industrial Average (DJIA) was often referred to as the market, in recent years that has changed. The Dow was first created in 1896 by the Wall Street Journal and Dow Jones & Company. Initially it only had 12 stocks.
Today, there are 30 stocks in the Dow Jones representing 9 of the 11 sectors. The only sectors missing are utilities and real estate. Even today it is one of the most widely followed equity indices, however, many do not consider it the best representation of the market because it only has 30 large companies and is not weighted by market capitalization. Nevertheless, I consider it a concise index that can provide indications of the overall value of the stock market. Today, I would rate the Dow Jones Industrial Average as significantly overvalued.
On the other hand, of the 30 Dow Jones stocks there are 10 that I consider attractively valued. In contrast, the other 20 appear to be significantly overvalued. Furthermore, it is also enlightening to evaluate the 30 stocks in the Dow because they are all premier large blue chips with strong brand identity.
In this video I will go over these companies: Goldman Sachs (GS), Walgreen (WBA), Intel Corp (INTC), Verizon (VZ), Dow Inc. (DOW), JP Morgan Chase (JPM), Travelers (TRV), Merck & Co (MRK), International Business Machine (IBM), Amgen (AMGN)
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Thank you Chuck for another great video! On the next one could talk about VST, HUN, TU, TD, CONE to see their valuation and potential growth?! I really would appreciated it! Thanks and see you on the next one!
Absolutely great video
I guess having six out of the ten should be a good start 🙂 still planning to get Goldman and Merck one day. Amgen is my favorite in today’s video
I have 5 out of 10, no intel, goldman, travelers, dow, jpm
Long IBM, VZ, WBA. Recently unloaded JPM for CCI instead. Sold DIS after it dropped the dividend a while ago. Sold INTC when it stalled a few years back. Sold MSFT in 2014 after many years lacking growth.
Some moves okay. Some not so much. Focusing exclusively on dividends and their growth these days.
Dear Chuck, as a subscriber, can I ask you to cover the meltdown of Chinese tech stocks, JD, Baba, tencent etc
What I see when I pull fastgraphs in a range of 10 years they look really undervalued, but when I shorten the time range for instance 5-6 last years most of them are. Becoming right now into buying zone.
Any ideas about that?
It something it always puzzled me using fast graphs, the time window I’m analysing and the fair value / under/over.
Greatings from Portugal!
Political issue is one big problem for Chinese stock. CCP has authority to demolish any company.
You want a stable economic and political country for investment.
The tool is dynamic make sure you are looking at the growth rates that change in the fast facts boxes. Earnings growth and cash flow growth etc. drive valuation. When you are changing time frames you will be seeing different growth rates which can alter the valuation. However, to answer your question precisely I would need a few specific examples. Regards, Chuck
@FASTgraphs yes, you are absolutely correct, Chuck.
Try for instance tencent, the full time frame That appear when we choose tencent makes the stock undervalued, but when we trim the time frame for the last 6 years, let’s say 2015-2021, only now the stock is approaching fair value and the blended pe didn’t change that much.
And that keeps on happening on much of high growth tech Chinese stocks and us tech stocks.
Can you please look into that and make a video why timing the time frame to the last 4-6 years makes a difference in valuating stocks to buy?
Hope I was clear enough, sorry, Portuguese is my mother language.
Kind regards,
Angelo Abel
Great content Chuck – Superman of Stock selection!
Great!! It’s easy to get hung up on the “market” being so dang high, and reduce investing.
Thanks! BTW, When will the new FastGRAPHS version be released? Looking forward to it!
Very soon! Although I cannot give you a specific time, I can tell you I am just as anxious as you are. This is been a very complex task in our developers are working feverishly. All I can say is were getting close but were not quite ready for prime time yet. Appreciate your patience, regards, Chuck
Hey chuck i think it would be interesting to go over your portfolio and see what you a personally invested in
I would love to see an analysis of Canadian banks
Great video! Nice job! Thank you sir! From Brazil!!!
New subscriber and it looks like I got here just in time for this series. Excellent analysis. Healthcare looking like the best sector for value buys these days.
I have a few of these Chuck. I think that BMY is very attractive at this time.
Always valuable content. Thanks Chuck
Some great ideas for a more deep dive! May I suggest another series – Investing ideas in different age groups or yield vs growth etc.
Thanks for the review. Love what you’re doing.
All the best,
Stoyan
It takes some nerve to buy IBM given their history… If they grow back to a leading tech Co., those with nerve will be rewarded. Thanks for stretching my opinion. What a Great Thinking Tool….
Agreed. Long IBM, but always paying attention…
Tech companies are all about their people and mostly their leaders. The company name or the brand will become empty shells when good people leave
IBM’s glory days were already over after the legendary Tom Watson Jr left in 1971, and it has underperformed S&P 500 horribly for the last 50 years
That’s why I never buy over the hills tech companies. Intel is the most recent example, maybe it will get another chance with Pat Gelsinger on board, but the road to recovery will be a bumpy one as AMD, Nvidia, and TSMC continue to eat its lunch for the next few years
Very important, reasonable valuation always reduce risk in a value company
Thank you for the vIdeo
Very important, reasonable valuation always reduce risk in a value company
Thank you for the vIdeo
Thank you Chuck for another informative video.
Hello Chuck: Have you ever considered sharing with your readership the stocks that you and your family currently hold? Not sure if you would be able to do this or not, but thought I would take a chance and ask. Thanks for all of your insights.