The Dow Jones isn’t supposed to be an exciting index. That’s much of the reason people invest in the 30 blue-chips that comprise it; for security. The Dow; however, has not been as plodding in recent years as some old standards prove they’re no longer fit for the faithful index of safety stocks and others assert themselves as faster moving than we might expect.
Among the first group is Boeing (NYSE: BA). There has been no shortage of wordplay describing Boeing as “primed to take flight” in recent months. Shares of the stock have added an impressive 22.5 percent so far in 2011, reaching their highest levels in nearly thee years. Profit is up 13 percent and it seems prepared to continue climbing. Boeing boasts a massive backlog of orders valuing $330 billion which could be instrumental in increasing profits for future quarters. The company also still has its much awaited
Beginning last year Caterpillar (NYSE: CAT) was moving at a pace that exceeded both the conations of its name and its index. The company attracted major attention, adding 64 percent during 2010 and they has continued to push higher this year, tacking on over 20 percent since the start of the year. Earning for Caterpillar added a massive 30 percent year-over-year last year and analysts are predicting similar growth for this year. These are big numbers for a blue chip stock and despite being old news with its growth,this stock seems prime to continue to make headlines if its pace of gains is able to hold up
New Brunswick, NJ- based Johnson & Johnson (NYSE: JNJ) has had a big 2011: they completed the biggest acquisition in their company history, exceeded analyst earnings expectations and have made steady gains. J&J, with the much buzzed about purchase of Swiss device maker Synthes Inc. acquired an entity that has the potential to help them ascend to the top of a market that can expect see growing demand in the coming years. Prosthetic hips and knees, a specialty of Synthes and J&J, can be expected to become more commonly used in the coming years as many baby boomers hit retirement (and/or replacement) age. The increase in senior citizens in the next decade could be a boon for the company and make developments there more exciting than the plodding pace the index is known for. It may be wise; however, if interested in an investment, to wait until J&J settles its investigation with the Federal government over the way the company marketed the anti-psychotic srug Risperal. Federal prosecutors are seeking $1B from the company, which would impact quarterly earnings for the company.
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