3 Dow Stocks to Buy on the Dip: July 2024

Dow Jones Industrial Average Overview - The Dow Jones Industrial Average (Dow) is an index fund composed of 30 influential American companies traded on the NYSE, including Apple, Coca-Cola, and Microsoft [1] - The Dow has declined over 3% in the last five trading days due to investor rotation from mega and large-caps to small-caps in anticipation of Federal Reserve rate cuts [1] - The current market conditions present a buying opportunity for investors to acquire Dow stocks at lower prices [1] Nike (NKE) Analysis - Nike's stock valuation has dropped over 33% since the start of the year due to declining sales [2] - Despite underperforming competitors like ON, Adidas, and Hoka, Nike remains a strong value stock with long-term potential [2] - Management is addressing the sales decline by focusing on a "multiyear cycle of innovation" [2] - The upcoming Paris Olympics are expected to serve as a significant catalyst for Nike, with the company launching an extensive ad campaign around the event [3] - Analysts have set a one-year price target of $92.45 for Nike, representing a potential upside of over 30% [3] Visa (V) Analysis - Visa's stock has declined 7% over the past month but is positioned for a rebound [4][5] - The company operates in over 200 countries and territories, providing payment processing and information services [4] - Visa's current stock price is $254.17 with a market cap of $494.58 billion [5] - The company boasts high profitability with profit and operating margins of 54.72% and 66.86%, respectively [5] - Visa has consistently exceeded EPS predictions over the past year, with an average surprise of 2.45% [5] - Institutional ownership stands at 94%, with 166 hedge fund investors, indicating strong confidence in the company's stability and growth potential [6] Apple (AAPL) Analysis - Apple's stock has fallen over 6% in the past 10 days but is expected to reverse its trend soon [7] - The company's market cap is $3.315 trillion, making it the largest company globally [7] - Apple has consistently beaten EPS predictions over the past year, with an average surprise of 4% [7] - The company's profitability is strong, with profit and operating margins of 26.31% and 30.74%, respectively [7] - iPhone sales dipped in 2023 compared to 2022 due to increased competition, but revenue is expected to surge with the launch of the iPhone 16 lineup [8] - Apple's AI advancements, particularly through its "Apple Intelligence" initiative, are expected to act as catalysts for stock value growth [8]