the Dow Jones Industrial Average (DJINDICES: ^DJI) It is the most widely followed stock index, and there are no surprises why – after all, Dow Jones is made up of the 30 largest stocks in the US Although the index is considered the largest based on price rather than market capitalization, it still performs excellently The starting point for investors to choose the best stocks for the long term, simply because all Dow 30 stocks are huge and well-established players in their respective industries.
At the moment, three Dow Jones stocks in particular look really compelling based on recent developments and upcoming catalysts, and you might want to buy them right away. Read alone.
Best Dow stock to run Biden’s infrastructure plan
In an interview with Jim Cramer on CNBC in April, Larva‘s (NYSE: CAT) CEO Jim Umbleby stressed that the infrastructure bill out of Washington would be “positive for us, no questions asked.”
On November 15, President Joe Biden silenced critics who have long blamed the government for speaking out and took no action on infrastructure by signing a landmark bipartisan infrastructure bill worth $1.2 trillion, less than Ten months since the start of his term as 46th Prime Minister. United State
As America now begins to rebuild roads, bridges, railroads, airports, and ports, modernize water and internet infrastructure, and expand public infrastructure, Caterpillar must take advantage of heavy equipment. As Caterpillar states in its annual report, “Spending rates on infrastructure, commercial construction, and housing also play an important role in our results.”
While Caterpillar’s construction industries segment focuses entirely on the infrastructure segment, the Resource Industries division also manufactures machinery for heavy construction, mining, quarrying and aggregates, and waste processing. The construction industries were Caterpillar’s largest segments in 2019, accounting for nearly 40% of total sales. Last year, this segment contributed 37% to sales, one notch lower than the Energy and Transportation division due to the challenges posed by the COVID-19 pandemic.
Caterpillar is already seeing strong demand even before federal spending kicks in — its revenue was up 25% year-over-year in the third quarter, as sales in the construction and resource industries posted double-digit growth.
Here’s the most important number: Caterpillar ended the third quarter with a $20.6 billion delay. If my memory is working properly, this is it the above The backlog I’ve seen since 2011 when Caterpillar finished the entire year with a record backlog of about $30 billion.
With Caterpillar earnings increasing for 27 consecutive years and the stock now nearly 17% from 52-week highs with a 2.2% return, Dow Dividend Aristocrat stock is a great infrastructure game.
Expect big things to come in this gigantic way
The world may return to offices soon, but the trend of working from home isn’t going anywhere. In an interview with CNBC on November 16, sales force‘s (NYSE: CRM) President and Chief Operating Officer Brett Taylor emphasized how flexible the business will be in the future, making it even more imperative for organizations to have digital tools to connect with “employees, partners, and customers no matter where they are.” Slack, a business messaging platform, is one of the powerful tools at Salesforce’s disposal, and Taylor is particularly excited about how Salesforce integrates Slack with the core Customer 360 platform.
Salesforce is the world’s largest customer relationship management (CRM) company with a market share of 19.5% in 2020, higher than the combined market shares of succulentsAnd inspirationAnd Microsoft, And AdobeAccording to Statista. That’s huge, and Salesforce has high expectations of Slack – which it recently acquired – to help it maintain the lead.
Salesforce is already growing by leaps and bounds — its 2022 revenue guidance translates into a compound annual growth rate of 26% in revenue between 2014 and 2022. Its margins and cash flow are rising at the same speed, and the company expects revenue growth of roughly 21%. 2023. Salesforce estimates that its total routable market will grow at a compound annual rate of 13% between 2021 and 2025 to reach $248 billion by 2025 with the bulk of global technology spending expected to be on digital transformation over the years. .
Taylor is particularly excited about Thanksgiving, Black Friday, and Internet Monday, and with Salesforce also about to report third-quarter numbers on November 30, this Dow stock is a solid buy.
It’s time to buy the dip in the top Dow Jones
Visa (NYSE: V) Stocks fell in recent days after Amazon (NASDAQ: AMZN) It said it will stop accepting payments with Visa cards in the UK from next year due to the higher fees. As a payment processing company, Visa processes payments made with its cards anywhere in the world and earns a fee per transaction as well as lowering the total volume of transactions in any given period. With Visa now at loggerheads with the e-commerce giant, many are concerned about how this might affect Visa.
Here’s why you might want to buy any dip in Visa stocks.
To start, Visa said in a statement that it is “already working on a solution” with Amazon, so this dispute will likely end with Visa and Amazon’s longstanding partnership in place. Despite this, although Visa does not provide a breakdown of revenue by geographic region, industry experts estimate that Amazon UK makes up a small portion – less than 0.5% – of Visa’s transaction volumes. So there might not be much to worry about even if Visa loses Amazon UK permanently in the worst case scenario, although this seems unlikely.
V data by YCharts
For its part, Visa’s latest numbers reflect the company’s growth trajectory. For the fiscal year ending September 30, 2021, Visa payment volume increased 18.3% to $10.4 trillion as it processed 164.7 billion transactions in the year, up 17% from 2020. Overall, Visa revenue grew 10% to $24.1 She earned $5.63 a year. Earnings per share on a GAAP basis for the year, an increase of 15% over last year. Visa also increased its dividend by 17% as it continues to aggressively buy back shares.
Those are solid numbers, and while Visa is driving slower revenue growth for its “premium teens” for 2022, it could be better if cross-border travel opens as COVID-19 restrictions ease. I’d bet more on that possibility than Amazon UK banning Visa permanently.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.