Top Dow Jones stocks to explore in September: CVX to KO

Highlights:

• The Dow Jones Industrial Average ticked up around three per cent QTD.
• Chevron Corporation (NYSE: CVX) stock rose more than 65 per cent YoY.
• UnitedHealth’s revenue increased by 13 per cent YoY in Q2 FY22.

Chevron Corporation (NYSE: CVX), Merck & Company, Inc. (NYSE: MRK), Amgen Inc. (NASDAQ: AMGN), Coca-Cola Company (NYSE: KO), and UnitedHealth Group Incorporated (NYSE: UNH)  are present on the Dow Jones Industrial Average index (DJIA).

DJIA comprises 30 leading US firms, and it was formed in 1896 with 12 stocks. The index tracks the performances of the 30 leading firms and is considered by some investors as a gauge of the overall US equity market's health.

Unlike the name suggests, Dow Jones Industrial Average doesn't only track the performance of industrial stocks but stocks from other sectors as well. However, it doesn't include the utilities and transportation stocks.

Although the index didn't have a smooth ride in 2022, it showed gains in the current quarter. However, it fell in August, especially after Fed Chair Jerome Powell's hawkish indications that the Fed may continue to tighten its monetary support in the coming months to fight inflation.

Here we look at the top Dow Jones firms' recent stock performance and earnings announcements with Kalkine Media®.

Chevron Corporation (NYSE: CVX)

The energy firm specializing in oil and natural exploration, gasoline refining, and chemical production benefited this year due to the soaring oil prices.

The CVX stock rose by 36 per cent year-to-date (YTD) while adding more than 65 per cent in the last 12 months. In the current quarter, it grew more than 10 per cent.

However, the oil prices declined this week on concerns over rate hikes and inflation, bringing down the oil prices to near US$ 96 per barrel on Tuesday.

The Chevron stock touched its 52-week high of US$ 182.4 on June 8, 2022, and its 52-week low of US$ 93.31 on September 20, 2021.

Chevron Corporation's total revenue and other income amounted to US$ 68.76 billion in Q2 FY22, a significant gain from US$ 37.59 billion in Q2 FY21. The attributable net income of the US$ 314.56 billion market cap company was US$ 11.62 billion compared to US$ 3.08 billion in Q2 FY21.

On July 27, the San Ramon, California-based company announced a quarterly dividend of US$ 1.42 per share, which would be payable on September 12.

Merck & Company, Inc. (NYSE: MRK)

Merck & Company is a leading pharmaceutical firm offering various healthcare solutions, including vaccines, prescription medicines, etc. It is also among the top-performing Dow Jones stock so far this year.

The MRK stock added more than 12 per cent YTD while growing about 13 per cent year-over-year (YoY). However, in the ongoing quarter, it slumped around five per cent. The US$ 216.68 billion market cap firm had a dividend yield of 3.15 per cent, and its P/E ratio was 13.14.

The stock of the pharmaceutical firm had an RSI of about 33, per Refinitiv data. Some analysts believe RSI between 30 and 50 indicates a highly volatile stock condition.

The worldwide sales of Merck were US$ 14.6 billion in the latest quarter, representing a surge of 28 per cent YoY. On a GAAP basis, its net income totalled US$ 3.94 billion in the second quarter of fiscal 2022, a significant jump from an income of US$ 1.21 billion in the preceding year's same period.

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Amgen Inc. (NASDAQ: AMGN)

The biotechnology firm Amgen maintained steady momentum through August 31, despite a slump in the broader market. The AMGN stock added more than seven per cent YTD while witnessing almost the same growth in the trailing 12 months. However, it traded flat in the ongoing third quarter.

Amgen had an RSI of 42, according to Refinitiv data. The US$ 128.66 billion market cap firm had a P/E ratio of 20.42, and its dividend yield was 3.24 as of August 31.

The company's total revenue rose one per cent YoY to US$ 6.6 billion in the latest quarter, from a revenue of US$ 6.52 billion in the year-ago quarter. Its GAAP net income totalled US$ 1.31 billion in the fiscal 2022 second quarter, compared to US$ 464 million in the year-ago period.

Coca-Cola Company (NYSE: KO)

Coca-Cola is a leading multinational beverage firm. The KO stock gained more than five per cent YTD while growing at a rate of over 10 per cent YoY. It traded flat in the ongoing quarter. The beverage firm had a dividend yield of 2.81 per cent and its P/E was 28.09.

The US$ 268.94 billion market cap company posted a revenue of US$ 11.3 billion in Q2 FY22, an increase of 12 per cent from US$ 10.12 billion in the year-ago quarter.

The net income attributable to shareowners of the Atlanta, Georgia-based company was US$ 1.90 billion in the latest quarter, comparatively less than US$ 2.64 billion in the comparable quarter of the preceding year.

UnitedHealth Group Incorporated (NYSE: UNH)

UnitedHealth Group is one of the leading healthcare and insurance firms. The Minnetonka, Minnesota-based firm had a market cap of US$ 488.7 billion, and its P/E was 27.21. The dividend yield of the healthcare firm's stock was 1.25 per cent.

The UNH stock added about four per cent YTD while soaring more than 25 per cent YoY. UnitedHealth Group noted a 13 per cent YoY gain in its second quarter fiscal 2022 revenue of US$ 80.33 billion. Its net earnings totalled US$ 5.19 billion in Q2 FY22, compared to US$ 4.37 billion in Q2 FY21.

Bottom line

Although Dow Jones couldn't escape the pressures so far in 2022 due to several macroeconomic factors, it performed better than the other indices, S&P 500 and Nasdaq Composite Index.

The higher interest rates and the decades-high inflation had dragged down the robust performance of the market it attained in the prior year. In addition, the geopolitical turmoil and economic slowdown had further weighed on sentiments.

The Dow Jones Industrial Average fell about 12 per cent YTD while slipping over 10 per cent YoY. However, in the current quarter, it gained more than three per cent through August 31.

On the other hand, the S&P 500 index slumped more than 16 per cent YTD, while Nasdaq Composite Index declined around 24 per cent YTD.