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Dow ETF Hits New Highs on Vaccine Optimism: 5 Best Stocks

Vaccine optimism has strengthened the post-election rally, pushing the Dow Jones to new highs.

Moderna MRNA became the second U.S. company after Pfizer PFE to report promising results from its COVID-19 vaccine late-stage trials. The data showed that Moderna’s vaccine candidate was 94.5% effective against coronavirus while Pfizer vaccine was more than 90% effective. The dual news has bolstered investors’ confidence in a swift economic rebound from a pandemic-led recession (read: Biggest ETF Winners from Coronavirus Vaccine News).

Notably, the Dow Jones hit all-time highs since February, marking its fastest bear market recovery in 30 years. This is especially true as the benchmark took 1,483 trading days to carve out a new all-time high after hitting a bear market, per Dow Jones Market Data. The Dow Jones is up 60.5% since its Mar 23 bear market.

Given this, SPDR Dow Jones Industrial Average ETF DIA tracking the Dow Jones Index has been in the spotlight. The ETF hit new highs of $300.08 in the latest trading session and is up 2.8% in a week. Let’s take a closer look at the fundamentals of DIA and its performance.

DIA in Focus

This is one of the largest and most popular ETFs in the large-cap space with AUM of $24.8 billion and average daily volume of 3.4 million shares. Holding 30 blue chip stocks, the fund is widely spread across components with each holding less than 8% share. Information technology (22.3%), healthcare (18.4%), industrials (16.3%), consumer discretionary (13.8%) and financials (13%) are the top five sectors. DIA charges 16 basis points (bps) in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.   

Though most stocks in the fund’s portfolio were in the green over the past week, we have highlighted the five best performing stocks in the ETF:

The Boeing Company BA: The stock has gained 12.8% over the past week. It saw no earnings estimate revision for this year over the past week and has an expected earnings decline rate of 165.7%. Boeing currently has a Zacks Rank #3 (Hold) and a VGM Score of F. The stock takes the 10th spot in DIA portfolio with 4.2% exposure. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chevron Corporation CVX: This stock makes up for 1.8% allocation and gained 12.1% over the past week. The stock witnessed positive earnings estimate revision of 7 cents for this year over the past seven days. It is expected to record year-over-year earnings decline of 102.2%. Chevron has a Zacks Rank #5 (Strong Sell) and a VGM Score of B (read: Energy ETFs in Focus Post Exxon, Chevron Earnings).

Cisco Systems Inc. CSCO: This stock takes 0.9% allocation in the fund’s basket and has gained 11.3% in the past week. The stock witnessed no earnings estimate activity for fiscal year (ending July 2021) over the past week. It is expected to see year-over-year earnings decline of 3.1%. Cisco carries a Zacks Rank #3 and has a VGM Score of C.

Walgreens Boots Alliance Inc. WBA: This stock takes 0.9% allocation in the fund’s basket and climbed 10.8% in a week. The stock witnessed no earnings estimate activity for fiscal year (ending August 2021) over the past week and has an estimated year-over-year earnings growth of 4%. It has a Zacks Rank #3 and a VGM Score of B.

3M Company MMM: The stock gained 6.3% over the past week and makes up for 3.8% share in DIA. It has a Zacks Rank #2 (Buy) and VGM Score of C. The company saw no earnings estimate revision for this year over the past week. It is expected to witness earnings decline of 5.8% (read: Can Industrial ETFs Gain Despite Mixed Q3 Earnings?).

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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
 
The Boeing Company (BA): Free Stock Analysis Report
 
Chevron Corporation (CVX): Free Stock Analysis Report
 
Pfizer Inc. (PFE): Free Stock Analysis Report
 
3M Company (MMM): Free Stock Analysis Report
 
Moderna, Inc. (MRNA): Free Stock Analysis Report
 
Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report
 
SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
 
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Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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