2020: The Dow Laggards, Risk or Opportunity?

2020: The Dow Laggards, Risk or Opportunity?

$BA, $IBM, $MMM, $CVX, $XOM

Boeing Co. (NYSE:BA) was a disappointment after the 2 deadly 737 Max crashes grounded the entire fleet of that aircraft to where the problems are still not solved. Boeing even finally capitulated and sent its CEO Dennis Muilenburg away. With global geopolitics still hot, and with a weapons and defense race as tensions with China and Russia remain elevated, there appear to be at least some undervalued defense stocks for Y 2020. After all of that, Boeing’s total return was still 1% in Y 2019. That is impressive considering that it is down 27% from a high at 446.00.

HeffX-LTN’s overall technical outlook for BA is Bearish in here.

International Business Machines Corp. (NYSE:IBM) may have managed to post a 17.9% total return in Y 2019 after adding in dividends, but at 134.04 it is has been ranged between 132 – 136 for most of the last 3 months. IBM spent up for Red Hat in a move that has not yet unlocked that growth driver for investors. A Key issue to consider is that CEO Ginni Rometty has not delivered gains for IBM investors. She assumed the CEO role in January of Y 2012, and during this time of great economic expansion and technology’s exponential rise from the new tech titans, IBM shares have come down from close to 200.00.

HeffX-LTN’s overall technical outlook for IBM Neutral in here.

3M Co. (NYSE:MMM) may have seen Q-4 gains of over 11%, but 3M shares closed out Y 2019 with a disappointing 7.4% total return.

The Big Qs: Will trade tensions easing help 3M’s China sales, or will management be able to get to the bottom of its ongoing margin erosion issues? And can 3M get its investors away from the unusual environmental situation the company is now in.

HeffX-LTN’s overall technical outlook for MMM is Bullish in here.

Chevron Corp. (NYSE:CVX) managed a 10% gain that exceeded the 2.3% gainer from rival Exxon Mobil Corp. (NYSE:XOM). Both energy giants are Dow components, but Exxon’s year-end price of 69.78 comes with a 5% dividend yield. The consensus analyst target price of 78.47 would imply a total return opportunity of about 17.5%, but Merrill Lynch sees close to 50% in implied upside in Y 2020 to its price objective. Chevron is also expected to see Northside of about 17.3% in Y 2020 if the consensus analyst target price comes to pass.

HeffX-LTN’s overall technical outlook for CVX is Neutral to Bullish in here.

HeffX-LTN’s overall technical outlook for XOM is Neutral to Bullish in here.

Have a terrific weekend

DJIA, BA, IBM, MMM, CVX, XOM, neutral, bullish, technical, outlook, HeffX, target, analysts, consensus, risk, opportunity,

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Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he it the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.