Dow Jones Stocks To Buy And Watch In September 2020: Amgen, Apple, Home Depot, Microsoft

The Dow Jones Industrial Average closed out August with sharp gains, but September continued to show ugly price action. Top Dow Jones stocks to watch in September are Amgen (AMGN), Apple, Home Depot (HD) and Microsoft.

There are clear winners — and losers — through the first eight months of 2020. The top three performing Dow Jones stocks year-to-date were Apple (AAPL), newly-added Salesforce.com (CRM) and Microsoft (MSFT) with gains of 75.8%, 67.6% and 43.0%, respectively.

The three biggest losers through August were Boeing (BA), Walgreens Boots Alliance (WBA) and Chevron (CVX) with declines of 47.2%, 35.5% and 30.3%, respectively.

Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 18.5% for the year through Wednesday's close. Meanwhile, the S&P 500 is up just 0.2%, while the Dow is down 6.2% year to date, through the Sept. 23 close.

What Is The Dow Jones Industrial Average?

Founded in 1896 with 12 stocks, the Dow Jones Industrial Average is one of the oldest stock market indexes. There are 30 Dow Jones stocks designed to serve as a bellwether for the general U.S. stock market. Other major stock indexes include the technology-heavy Nasdaq composite and the S&P 500 index — an index of the 500 largest companies in the United States.

Best Dow Jones Stocks To Buy And Watch

Company NameSymbolClosing Price2020 YTD PerformanceAmgen(AMGN)243.19+0.9%Apple(AAPL)110.08+50.0%Home Depot(HD)272.35+24.7%Microsoft(MSFT)202.54+28.4%Nike(NKE)113.37+11.9%Walmart(WMT)137.07+15.3%

Source: IBD Data As Of Sept. 21, 2020

Amid the current stock market weakness— according to the IBD Big Picture — investors should be focusing on the stocks that are holding up the best during the market weakness. These stocks will have strong relative strength lines, and could be some of the next uptrend's stock market leaders.

Potential Dow Jones stocks to buy and watch in September that are in or near buy zones include Amgen, Apple, Home Depot and Microsoft.

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Amgen Stock

New Dow Jones stock leader Amgen is tracing a flat base with a 265.07 buy point, according to MarketSmith chart analysis. Shares fell 0.4% Friday. Amgen is a recent addition to the Dow Jones Industrial Average, along with Honeywell International (HON) and Salesforce.

According to the IBD Stock Checkup, Amgen shows a 91 out of a best-possible 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths.

A potential flaw is the stock's lagging relative strength line. The RS line measures a stock's price performance vs. the broad market.

Apple Stock

Apple stock is in the process of trying to find support near its key 50-day support level. Apple shares rose 1% Friday, and are about 20% off their 52-week high. A strong rebound from the 50-day line would place the Dow Jones leader in a new buy zone.

On Aug. 31, Apple's 4-for-1 stock split went into effect. Just two days later on Sept. 2, the stock advanced as much as 91% past a 72.16 buy point in a cup with handle after a breakout on April 29.

Apple is an IBD Leaderboard stock.

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Home Depot Stock

Home Depot stock is trying to find support at its 50-day moving average line amid the current stock market pullback. A strong rebound from this level would indicate institutional demand, moving the stock into a new buy range. Shares moved up 0.1% Friday.

The home-improvement retailer broke out above a 259.39 buy point in a cup with handle on July 15.

Microsoft Stock

Microsoft stock is below its 50-day support level after recent losses. Shares moved up 0.3% Friday, and are still below the 50-day line.

The stock is about 20% above a 180.10 buy point in a cup with handle after a May 5 breakout.

Tip: Before making any investment decisions, be sure to check current market conditions, and use IBD Stock Checkup to see if your stock gets passing ratings for the most important fundamental and technical criteria. To get ongoing chart analysis, and alerts to buy and sell signals, check out the unique features, stock lists and chart annotations at MarketSmith, Leaderboard and SwingTrader.

Reprinted from yahoofinance, the copyright all reserved by the original author.

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