The Top Dow Stocks Since The March 2009 Low

Wall Street Bull

Those who claim you can’t make money in blue-chip dividend stocks should take a look at the following top 5 Dow components.

They’ve at least doubled since the March 2009 low, which was two years ago this week.

Although the mega-cap index has lagged the S&P 500 and Nasdaq since then, several companies have surged. Several may still outperform in 2011.

Click here for the top 5 stocks >>
This post originally appeared at The Street.

Caterpillar designs, manufactures and sells construction and mining equipment

Caterpillar's stock has more than quadrupled since the March 2009 low. It has climbed 74% in 12 months and 14% in three. Caterpillar ranks as analysts' tenth least-favourite Dow stock. Of researchers following Cat, 13, or 59%, advise buying its shares and nine say to hold.

None recommend selling. Macquarie offers the highest target on Wall Street, expecting a gain of 24% to $125. Sterne, Agee & Leach, ranking Cat 'neutral', expects a marginal rise to $103. Cat trades at a forward earnings multiple of 12 and a cash flow multiple of 13, 26% and 19% industry discounts. The shares are expensive based on book value.

American Express is a credit-card company, competing with the likes of Visa

American Express's stock has more than tripled since the 2009 low. It has risen 12% in 12 months, but fallen 4.6% in three. AmEx places as researchers' ninth least-favourite Dow stock. Of the analysts covering AmEx, 18, or 67%, rate its stock 'buy', six rate it 'hold' and three rank it 'sell.'

Piper Jaffray offers a target of $62, suggesting a 12-month rise of 44%. Raymond James forecasts a fall of 16% to $36. American Express, undervalued based on its 5.6 cash flow multiple, is fairly valued when considering forward earnings and book value. Fourth-quarter adjusted earnings jumped 59%, still missing consensus.

Bank of America is a financial company, with retail- and commercial-banking units

Bank of America's stock has more than tripled since the 2009 stock-market low. It has fallen 16% in 12 months, but rallied 18% in three. Bank of America ranks as researchers nineteenth favourite Dow stock. Of analysts covering the equity, 60% rank it 'buy.'

Raymond James is optimistic, predicting a gain of 73% to $24. Deutsche Bank, on the other hand, expects the stock to fall to $13. Bank of America sells for a forward earnings multiple of 7.5, a book value multiple of 0.6, a sales multiple of 1.1 and a cash flow multiple of 1.7, 32%, 35%, 42% and 66% peer discounts. The bank swung to a quarterly profit of 30 cents, beating Wall Street's consensus.

DuPont is a chemicals company, with agriculture, materials and pharmaceutical units

DuPont's stock has rocketed 184% since the March 2009 market low. It has returned 56% in 12 months and 9.4% in three. DuPont currently places as researchers' twelfth favourite Dow stock, receiving 10 'buy' calls, five 'hold' recommendations and no 'sell' ratings. Citigroup is bullish, expecting an advance of 22% to $65.

Credit Suisse forecasts a more modest increase to $58, ranking DuPont 'neutral.' DuPont trades at a trailing earnings multiple of 16, a forward earnings multiple of 13, a sales multiple of 1.5 and a cash flow multiple of 11, 25%, 24%, 47% and 23% chemicals industry discounts. Adjusted quarterly earnings rose 14%, beating consensus.

Alcoa is a materials company, selling aluminium, alumina and related products

Alcoa's stock has gained 161% since the March low. It has rallied 23% in 12 months and 15% in three. Alcoa currently ranks as the fifth least-favourite Dow stock. Of researchers following Alcoa, nine, or 50%, advise purchasing its stock, seven recommend holding and two advocate selling.

Deutsche Bank offers the highest 12-month target, auguring a rise of 36% to $22. In contrast, RBC Capital, ranking the stock 'underperform', expects it to fall to $16. Alcoa sells for a forward earnings multiple of 11, a book value multiple of 1.2 and a cash flow multiple of 7.3, 73%, 65% and 58% industry discounts. Adjusted quarterly earnings beat analysts' consensus forecast by 12%.

Which other Dow stocks are soaring?

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