The month-long Russia-Ukraine war has aggravated global logistical disruptions, further fueling inflation. However, despite a hawkish Fed stance, the U.S. economy seems on track to overcome these hurdles. According to Erin Browne, PIMCO’s managing director and portfolio manager, “I think anyone has to be impressed with the resiliency of the market.”

Thanks to easing concerns, the Dow Jones Industrial Average has gained 6.1% since March 14. And the expected continuation of the economic recovery should drive the index higher in the coming months.

Given this backdrop, we think it could be wise to watch quality DOW Jones stocks Intel Corporation (INTC), Merck & Co., Inc. (MRK), Amgen Inc. (AMGN), and The Travelers Companies, Inc. (TRV), which have been surging in price of late.

Intel Corporation (INTC)

INTC in Santa Clara, Calif., designs, manufactures, and sells computer products and technologies worldwide. The company operates through CCG; DCG; IOTG; Mobileye; NSG; PSG; and All Other segments.

On January 26, 2022, INTC’s CEO, Pat Gelsinger, said, “Our disciplined focus on execution across technology development, manufacturing, and our traditional and emerging businesses is reflected in our results. We remain committed to driving long-term, sustainable growth as we relentlessly execute our IDM 2.0 strategy.”

INTC’s net revenue increased 2.8% year-over-year to $20.53 billion in the fourth quarter, ended Dec. 25, 2021. Its Internet of Things net revenue increased 27.4% year-over-year to $1.41 billion. The company’s total current assets came in at $57.72 billion for the period ended Dec. 25, 2021, compared to $47.25 billion for the period ended Dec. 26, 2020. Also, its total assets came in at $168.41 billion, compared to $153.09 billion for the same period in the prior year.

Analysts expect INTC’s revenue to increase 2.3% year-over-year to $77.86 billion in its fiscal year 2023. Its EPS is estimated to grow 5.1% to $3.71 in 2023. Also, it surpassed EPS estimates in each of the trailing four quarters. And over  the past month, the stock has gained 8% in price to close yesterday’s trading session at $51.51.

INTC’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which indicates a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.

INTC has a B grade for Value, Sentiment, and Quality. Within the A-rated Semiconductor & Wireless Chip industry, it is ranked #9 out of 97 stocks. Click here to see the additional POWR Ratings for Growth, Momentum, and Stability for INTC.

Click here to checkout our Semiconductor Industry Report for 2022

Merck & Co., Inc. (MRK)

MRK operates as a healthcare company worldwide. The Kenilworth, N.J., company operates through two segments, Pharmaceutical and Animal Health. The company continues to be at the forefront of research to prevent and treat diseases that threaten people and animals.

On Feb.3, 2022, CEO and president Robert M. Davis said, “We enter 2022 with strong momentum and are moving with speed to bring forward innovations that address critical unmet needs and contribute to global health. This remains at the core of our strategy, and why we are focused on benefitting the patients we serve, and in turn creating long-term value for our shareholders.”

MRK’s sales increased 23.5% year-over-year to $13.52 billion for the fourth quarter ended Dec. 31, 2021. The company’s net income came in at $3.76 billion, compared to a $2.09 billion loss in the year-ago period. Its EPS was  $1.51 compared to a $1.03 loss per share  in the prior-year period.

For its fiscal year 2022, analysts expect MRK’s revenue to be $57.34 billion, representing a 17.7% year-over-year rise. The company’s EPS is expected to increase 20.9% year-over-year to $7.28 in its fiscal 2022. Over the past month, the stock has gained 6.1% in price to close yesterday’s trading session at $81.21.

MRK’s POWR Ratings reflect this promising outlook. The stock has an overall A rating, which equates to a Strong Buy in our proprietary rating system.

Also, the stock has a B grade for Growth, Value, Stability, Sentiment, and Quality. Within the Medical – Pharmaceuticals industry, it is ranked #3 out of 175 stocks. Click here to see the additional POWR Rating for Momentum for MRK.

Click here to checkout our Healthcare Sector Report for 2022

Amgen Inc. (AMGN)

AMGN in Thousand Oaks. Calif., discovers, develops, manufactures, and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience areas. 

On Feb. 3, 2022, AMGN and Plexium, Inc. announced an exclusive, worldwide, multi-year research collaboration and license agreement to identify novel targeted protein degradation therapeutics for historically challenging drug targets. Ray Deshaies, Ph.D., senior vice president of AMGN’s Global Research, said, “Collaborating with Plexium and leveraging their innovative technology to identify molecular glue degraders can help tackle some of the most challenging protein targets to address serious disease.”

For the fiscal fourth quarter, ended Dec. 31, 2021, AMGN’s total revenues increased 3.2% year-over-year to $6.85 billion. Its non-GAAP net income came in at $2.46 billion, up 21.7% year-over-year, while its non-GAAP EPS came in at $4.36, up 26% year-over-year.

AMGN’s revenue is expected to be  $27.42 billion in its fiscal 2023, representing a 4.7% year-over-year rise. In addition, the company’s EPS is expected to increase 8.9% year-over-year to $19.18 in 2023. Also, it surpassed the Street’s EPS estimates in three of the trailing four quarters. Over the past month, the stock has gained 6.2% in price to close yesterday’s trading session at $240.47.

It is no surprise that AMGN has an overall A rating, which equates to a Strong Buy in our proprietary rating system. In addition, it has an A grade for Quality and a B grade for Value and Stability.

AMGN is ranked #10 of 422 stocks in the Biotech industry. Click here to see AMGN’s growth, Momentum, and sentiment ratings.

The Travelers Companies, Inc. (TRV)

TRV, through its subsidiaries, provides a range of commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals in the United States and internationally. Its three segments are Business Insurance; Bond & Specialty Insurance; and Personal Insurance. TRV is headquartered in New York City.

On January 20, 2022, Alan Schnitzer, chairman and CEO, said, “We are very pleased to report outstanding results for the fourth quarter and full year, including meaningful top-line growth, strong margins, and excellent returns from our investment portfolio. Another year of exceptional performance is a testament to our franchise value, underwriting excellence, and investment expertise.”

TRV’s total revenues increased 7.3% year-over-year to $9.01 billion for the fourth quarter, ended Dec.31, 2021. Its net income came in at $1.33 billion, up 1.8% year-over-year, while its EPS was  $5.37, up 5.3% year-over-year.

Analysts expect TRV’s revenue to grow 6.3% year-over-year to $33.98 billion in its fiscal 2022. In addition, the company’s EPS is expected to increase 12.9% to $14.40 in 2023. It surpassed the Street’s EPS estimates in each of the trailing four quarters. And over the past month, the stock has gained 8.7% in price to close yesterday’s trading session at $186.76.

TRV has an overall B rating, which equates to a Buy in our proprietary rating system. In addition, it has a B grade for Momentum and Stability.

TRV is ranked #6 of 29 stocks in the B-rated Insurance – Life industry. Click here to see the additional POWR Ratings for Growth, Value, Sentiment, and Quality for TRV.

INTC shares were trading at $51.81 per share on Tuesday morning, up $0.30 (+0.58%). Year-to-date, INTC has gained 1.37%, versus a -2.87% rise in the benchmark S&P 500 index during the same period.

About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...

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