Caterpillar is the top Dow stock for October, with the Dow Jones index poised for its biggest monthly gain in decades.
Chevron, Honeywell, JPMorgan Chase and Travelers Companies round out the top five stocks in the blue chip stock index in October.
The blue chip Dow Jones Industrial Average eyes its best month since 1976, after a big comeback for the markets in October, after two down months.
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Dow Jones Index Leads October Comeback
The 30-stock Dow Jones index surged 13.95% in October. That compares to an 8% gain for the S&P 500 index and a 3.9%% gain for the Nasdaq Composite.
Investors appear to favor "Steady Eddy" stocks for the next market cycle. Tech-led growth stocks sold off especially hard in October.
The Dow Jones stocks can sometimes be found on the IBD 50 list of top growth stocks. They often can be found on the Big Cap 20 list.
CAT Stock, Caterpillar Earnings
Shares of the heavy equipment giant spiked 32.2% in October. That includes a nearly 8% earnings gap-up on Oct. 27. For the September quarter, Caterpillar earnings surged 49% per share as revenue grew 21%, both on a year-over-year basis.
The Stock Checkup tool shows that CAT stock is highly rated by IBD in terms of key ratings. It earns a 91 IBD Composite Rating, 88 RS Rating, and an 84 EPS Rating, all out of a best-possible 99.
Caterpillar should benefit from the bipartisan $1 trillion infrastructure bill, passed in 2021. It makes construction and mining equipment.
CVX Stock, Chevron Earnings
Shares of the oil major gushed 25.9% higher in October. CVX stock briefly topped a 182.50 buy point on strong earnings last week.
The company beat third-quarter views Oct. 28. Year over year, Chevron earnings surged 88% per share as sales increased 59%.
Chevron stock earns a 98 Composite Rating, 95 RS Rating and 78 EPS Rating.
Rival Exxon Mobil, a former Dow Jones component, also beat Q3 views. Energy and energy-related stocks are riding high as inflation continues to drive up prices and the Russia-Ukraine war drags on. Several energy plays can be found on IBD Leaderboard and XOM stock is on the IBD 50 list.
HON Stock, Honeywell Earnings
The diversified industrial conglomerate closed with a 22.2% monthly gain. That includes a 12% earnings surge for HON stock last week.
For the September quarter, Honeywell earnings rose 11% as sales grew nearly 6%. The solid results highlighted operational execution despite a multitude of macroeconomic headwinds.
Honeywell stock holds a 78 Composite Rating, 84 RS Rating and 69 EPS Rating.
JPM Stock, JPMorgan Earnings
Shares of the money-center bank cashed in with a 20.5% monthly gain. The rally for JPM stock came amid strong earnings for several big banks.
For the third quarter, JPMorgan earnings fell 16.6% and revenue grew 10%, with both beating views. Net interest income jumped 34% thanks to higher interest rates.
JPMorgan stock carries an 85 Comp Rating, 75 RS Rating and 69 RS Rating.
TRV Stock, Travelers Earnings
The nation's largest property and casualty earner moved 20.5% higher in October. That includes a 4.4% earnings pop for TRV stock Oct. 19.
For Q3, Travelers earnings fell 15% amid Hurricane Ian losses. But the company crushed earnings estimates.
Travelers stock bears an 89 Composite Rating, 90 RS Rating and 65 EPS Rating.
