Hello. Everyone, and thanks for tuning into the financial, investor channel my name is Brent and today I want to discuss the Dow Industrial. Average so, over here on CNN, I went. Ahead and took a look at the Dow Jones Industrial. Average index, this, is an index of 30 stocks many. Of them are big. Names that you may recognize, such as trouble M Apple. Boeing, Caterpillar Chevron, Cisco, Cola, I mean the list goes on many, of these names you probably know IBM, Home. Depot so, I've copied, these into, a spreadsheet that I have here on Google Spreadsheets and. I've. Sorted them by change, year to date you, can see that the current winner is Boeing with a gain of twenty five point two nine percent and the, loser is generally, electric with the loss, of twenty point one seven percent, now, we're going to be focusing, on some of the stocks here that are in the negative, so there's currently fifteen, Sox that are in the negative here fifteen count and there's, fifteen suck sort of the positive so it's 50/50 right now. Earlier. This week on Tuesday when I had looked at the Dow 17, the stocks were actually in the negative and the. Dow had been held up by roughly nine stocks, Merck has made some movement this week up going up 3.3%. And joining. That 10% club as, far as the positive winners, so, in this video I wanted to cover some of the negative stocks that could be potential, buys maybe. They've been getting some hate lately it's caused their start to kind of go down and, we. Might see some movement towards the positive, here kind of going forward so, in this video we're going to cover the 15 stocks currently on the negative and the Dow chart. Them off over in Y charts take a look at the price over, the last ten years the. Revenue, net income free cash flow take a look at the current p/e ratio, their future p/e ratio, are. They expected to grow or fall. And then, punch. Them over into dividend, comm take a look at how long they've been paying out dividends for so all these stocks here and the, Dow Jones payout. A dividend, it may be small such as Visa has a very low dividend but, they pay out some amount. And, check out their growth over the last 10 years do. They keep. Up with the average return, the S&P 500 was about seven and ten percent so that, is what we're going to be doing in this video if you. Are brand new to my channel go, ahead and hit the subscribe button hit, the notification, button because I put out content every, single week on stock. Market and real estate real into videos let's. Go ahead and get started so here. What I've done is actually started, here in the negative the most negative company General Electric and put it into my white charts and I've, continued, to do that going from Procter & Gamble Walmart, and so on so. I'm going to go ahead and, move this over here to the right of my screen so you can still see the year-to-date change, now. Actually. How accurate, is white charts I have two showed you guys this I know, some people have left comments saying, that the percent has changed and stuff is that pretty accurate, well General Electric for example, you're. Today a change is down twenty, point one seven percent if I take a look at year to date change put. That price in you can see that the price, is down 20.2%, this, is the same that. One seven is just ranted to it to if. We take a look at the five year change is down forty one point six two percent, if, we, take a look at the. Five. Year change let's flip for our five-year chart it's downs 41.6%. If we take a look at the five-day change, and flip. This back to its friday change, we'll, see that it's down one point to one percent down one point to one percent so it's very accurate as far as the data that it presents when. The users are using it. So. Here for example I, could.
Take A look at its price over, the last ten years and, tell you that. It's down as of, ten years ago it's down fifty seven point seven percent. If. We take a look at some of these other socks here Procter and Gamble it's it's it's, positive. Seventeen percent so it's an average return of one point seven percent per year it doesn't keep up right now at the sp500, Walmart. Up forty percent that's. About four point one six average return per year so, if you want something that has made it over the, average S&P 500. You, will see triple line you would see anything, with the movement over, the last ten years of a seventy percent or more so, here this is a seventeen. On average return. For, triple-m and, this. Is the company right now that's. Currently down twelve point two three percent this, one has had seventy percent on average return, for. The last ten years if, we, bring in their revenue, free cash flow net income we. Can see that that is all positive as well over, the last ten years so that's why this, company, has had that price movement, beat you know so positive, over the last ten years and it's, been getting a lot of hate so far a year today now if we go back and just look at these last three stocks that we just covered Walmart. Will. See that their price is only at forty percent but their. Net income has, gone down as, of. 2015. Net, income has dragged down, their. Revenue, has been you know not amazing. About, two point eight two point seven percent return, on their. Revenue year-over-year, and. Their. Current free cash flow has going up nicely I think, they're trying to make some transitions, into the online sales so, you. Can see here that they don't all have positive, numbers which is why that price may not be as amazing. As some others here, for example Procter, & Gamble not a whole lot of growth in their price that could be due to their. Free cash flow having. Not grown over the last ten years their. Revenue, has not grown at all actually in the negative by nineteen point two and their, net income only up twenty, six point nine percent that's, an average of two. Point. Seven, percent year-over-year. Increase. In. Net income so. That. Is why look, at this deck General Electric for example, this, stock has not had any movement, since, back in 2000. Looks. Like early 2016. And may have peaked, and. All. Those investors, here they probably, jumped out I don't know maybe some investors had jumped out hit their 200-day moving average, people, jumped out to it into, General Electric calls or stock the price and then, nobody was looking at their actual financials, they were looking, at their net income they weren't looking at their revenue, if, it's free cash flow if they would have they would have seen that these are all in the negative right now going down as of, 2015, and that would be catching a falling knife whereas. If you bought currently. General Electric or a Triple M, you, can see that everything is in the positive, their. Free, cash flow has gone down slightly but, that if you just look over the last few years of their quarterly. Or just yearly. Reports you, can probably see they may be doing some sort of acquisition, so this is a little bit healthier looking, stock. If. We continue on with our list General Electric or Johnson, & Johnson I'm sorry net.
Income Is down as, of. 2000. And end, of 2017. Maybe. Something happened with that tax reform that could be doom maybe they're reinvesting, some of their their, earnings back into the company that caused their, net income to has cut decrease. Decreased, they're still. They're getting 90 percent return, over, the last ten years that's an average return of nine percent on you, know average return per year, their. Free cash flow is up and their. Revenue is up. There. On there. The fifth fifth, slot from behind. Goldman. Sachs there and. The. Red here is their free cash flow and their. Revenue, but their net income and their stock price has been on the positive, end. Horizon. Only. Thing negative here is free cash flow so good looking numbers here otherwise very. Steady increase, in price, very steady increase, in, net. Income has shot up drastically, as of 2013, and. Their. Revenue. Has. Been a steady return of around two point seven eight percent, on average, per year. Now. IBM, this is one of those socks I don't know what's going on with them that exactly peaked out in 2013. And stay. With their financials, here you can see that all their financials, had been moving upwards in 2013. They. Nobody, knows what happened to them I don't know I don't really track IBM, I know. At one point they're trying to get on the blockchain but. You can see that since then their financials, have gone down their, price has gone down they, peaked out, roughly. A 60, percent peaking, point back. In 2013, and then have been on the decline since then. Coca-cola. Looks like they may have peaked here. In. 2014-2015. Before, their. Financials, begin a slide their net income is down roughly 80 percent 8, percent year-over-year, net. Income decrease. But. Their, revenue. Free cash flow is positive, right now slightly not. Amazing. Numbers that's less than 1% average, per year but. Their stock price has climbed roughly. 6 percent average, per year so, coca-cola I think this is a little bit more of a riskier, one you, can see that our financial metrics aren't haven't, been doing amazing over, this timeframe in the last 10 years where a stock market itself has, been doing very well Walt. Disney. Ok. So Walt Disney this, is getting a lot of hate right here it's number what. Is it from the list 9, from the list so it's number 9 right now and the negative at. 3.2, 8% and the negative for the year this, could be due for a nice rise you can see that as of 2015, it, has. Just basically trending sideways at this, line it. Had spiked, going up and they came back down to it's moving average spikes going up came back down kind, of fell below its 200-day moving average, and then. Decreased. Even there before the investors jumped into it looks like 2017. Wrote. Up quite a bit fell, back down so it's just kind of training that and you know Disney itself is doing some movement in there streaming services pulling. Some of their videos out of Netflix, creating their own streaming services but really sent a lot of those Star Wars films, I think. They hold the license to some other names, so. They're definitely doing some movement there so I could see doesn't he be in very positive their. Price has been stagnant over the last three years but their net income revenue and free cash flow has continued, to rise on.
Average. Over. Five percent on everything 5 10 and 15 percent average, return, year-over-year, so. Good good-looking, stock there I think Disney is one of the best-looking ones that we've seen travelers. Companies their, stock prices up 17% average, return average year-over-year. But. Why, their. Net, income is actually down 3%. They're losing it every year year over year their. Free cash flows down every, year about 3% as well and their. Revenue has been very, fail at a1 with 1.4. Percent gain here. Over here up, at 14 point four nine percent, right now so. I don't think this. Price with there currently sitting that is you. Know their. Current fallback right now it's. Probably one of the reasons I'm not sure that would be what I would consider risky, investment, myself dal, DuPont, everything. In the positive here I like to see numbers like this again another positive stock, everything. Is in the green their, stock price isn't you know it's been actually kept keeping, up with the S&P 500 that's. Seven, eight percent so this one has a, 76. Percent growth. 76. Percent change over the last ten years that's, a 7.6. Percent average return, year over here now, if we include their dividend, in there as well what's, their dividend yield. Their. Dividend yield is that around three percent right, now so not a bad dividend. Yield either I. Guess. We can take a look at that here in a minute as well make. Donald's. McDonald's. Hot shot up crazy. Going. Into 2016, you can see that they're similar to Disney they, traded sideways for, quite a while between 2012. And. 2016. So. That is roughly a little under. Four years, before. Shooting up they. Had trended, sideways, and that 60% mark, for quite a while and then. Broke out and are, now at a hundred and eighty four point eight percent return so, basically doubled, their, stock price as of. 2015. They. Doubled it and then some very. Similar to the Walt Disney thing that I had seen here they've been trading sideways for quite a while but they do have a lot of stuff going on with. A company. Next. Is, caterpillar. You can see that all their numbers as far as financial, metrics are down there. Down in revenue, they're down in free cash flow they're down in net income but. Their stock price has climbed, out that's. Kind of surprising I, would expect this one to kind of go down and set up up you know similar to General Electric where.
The. Numbers had gone down by quite a bit here their, price had actually, fallen because of that as well caterpillar. On the other hand, have all negative. Numbers as far as its revenue net income free cash flow but, a stock price instead of falling here it was on its way down I would, have you. Know I would have I. Would. Have thought it had a negative, 60 percent loss and said it, has gained. Roughly. 90 percent over. The last two. Years if we flipped to our three our chart here we'll, see that, they. Were actually in the negative here. Yeah. It's mainly it's all this growth here is within the last couple years all. Within, the last period, here if we take a look here. In. 2016. They're actually in the negative for quite a while here is that zero percent mark then, around the negative and. And. In. July. August September. Timeframe, their. Stock rose. Up out of the negative and rose. All the way up to seventy nine point zero eight percent so maybe. Some investors, saw some, potential, there even though with their negative, financial. Metrics they're maybe they you know it looks like they're bouncing back up here as far as net income and, in. Revenue. So maybe they kind of turn it around right here you can see that's why their, stock begun, to go up so. Here we saw a little bit of change here instead of going down their. Net income and revenue, started. To go up maybe. The investors saw that point changing, and have invested, and that's what kind of caused them to kind of continue to rise up. Interesting. There to see. ExxonMobil. Everything, in the red you're, today over the last 10 years so the last 10 years excellent. Has lost roughly. They're. Only up 6.1%. So, they're they're actually down you're over here about, 0.6 percent on average. Per year and. Over the last 10 years that gives them that negative six point one four percent their. Revenue free cash flow net income is all the negative, do. We see excellent turning around I don't, I don't myself but. Interesting. One there to, take a look at so, some of the stocks that did look like they would be good potentials, or, McDonald's. Dow. DuPont. Disney. Well. I cook although I wouldn't say that one's pretty good one I would. Say Verizon's doing pretty well. Yeah. Only free cash flow down golden. And Silex only free cash flow down. Now. Their net income is down there. Okay. So triple em. Walmart. Not. Amazing, they're not really turning around, that. Would be when I would watch I would watch Walmart. And. See if they're gonna be turning around here, their net income is up their price is slightly up Procter. & Gamble and then. Jorah electric I wouldn't touch that one so, I'm gonna go ahead and. Actually. I'm going to go ahead and remove some of these ones that had the negative net income and, then. We'll kind of proceed from there so, anything with you, know too many negative numbers I'm gonna go ahead and just remove this from my list I. Want. To see some positive net, income at least if they're negative for free cash flow and revenue at, least they're pulling some sort of money with their net income up over the last 10 years here for example Walmart, not. So hot in that net income triple mmm all positive, numbers keeping that Johnson. And Johnson down in that net income they, could just be due to tax reform as well but. Still free cash flow down gonna go ahead and keep that. Wall. Of Verizon still up IBM, that's all negative coca-cola. That, is dad as for net income well. It doesn't all positive, numbers travelers. Everything, net, income is in the, negative so I gotta remove that dad, depart all positive. McDonald's. All positive. Besides their revenue but the arm pull it in cash still. Caterpillar. All, negative, and. They're. An, X on all a negative, there as well, so. All the sucks that we covered 15. Of the stocks negative in the Dow, these. Are a few here Procter, & Gamble Triple M Goldman. Sachs for Rison Disney dial DuPont McDonald's, that could, appear to be good you. Know investigating, a little bit further now let's take a look at the price earnings ratio and their future p/e ratio. And. Just switch it to one year Procter & Gamble currently, let's go ahead and normalize our Dido so. Blue, is current. Orange. Is future so Procter and Gamble is expected, in the future to become more profitable and increase, their earnings, Triple. M is expected. To you, know basically. Double, their earnings right now you, can see that their current ratio that the thirty point six three their, future, ratio is that, a nineteen, point nine so they're expected, to draw in quite a bit more earnings going.
Forward Goldman, Sachs basically. Double their earnings I do see that with rising rates I could definitely see Goldman Sachs doubling. Up with. Rising interest rates, loading. You know restrictions. On loans getting, cut down a little bit so, here for example p/e, ratio, is, currently a six point four maybe. They're looking to not become as, profitable, or their earnings not to grow as much in the future so, here for example Verizon. Its. Future, p/e ratio is expected to rise I'm gonna go ahead and just deselect, it for now there's better stocks out there it's. Very interesting that Walt, Disney has. A future. P/e. Ratio, higher, than, it is right now you know I'm not gonna cut out rising. I'm. Gonna go ahead and keep that one in there I think, that's probably a bad reason. To cut out some stocks I think I cut out, two. Four, six no I don't, think I've cut out anything recently, due to that so. This would just be something to research more I'm not gonna cut it out of the list, because. I do expect, Disney to grow some I don't see how their earnings could go down in the future just because the way that they've been kind of transitioning, Dow, DuPont. Current. P/e ratio, is at a ninety, three point nine one, forward. P/e is at a sixteen point seven five that, may not be correct but very surprising. McDonald's. Yep. Continuing, to increase their earnings in the future. Now. I like to take a look at price the book price of sales something around three see. Here Procter & Gamble right around that three, Johnson. An hour triple ugh third guy Triple M price. The book value is a little bit higher price in comparison to the book value at the company is that. Eleven but that looks about average for the for the company, itself. Here Triple. M there PE are puts. Us in the red and the orange price. Of sales so, it's actually at, one of the lower points. Goldman. Sachs it's. Pretty normal there this is actually one of the lowest points as far as price of sales that you see, Goldman Sachs so. Price of sales had, been above three for quite a while and going. Into April 2018. It's actually came down probably. Due to just a loss that they've taken recently they probably went into the negative now in price which. Gave them a good buying opportunity right, now Walt, Disney. One. Of the cheapest points as far as booked price to book value and, price. The sales value over the last oh this, is 10 years let's. Go one year let's take a look at just ten years and see where. They are as far as history goes. Procter. & Gamble. They. Have came down as, the last couple years so goodbye and opportunity their Triple. M very. Steady increase, their.
Goldman, Sachs. Walt, disney. Talent, DuPont. That's. A pretty good, price. The book and prices, hills right there. Mcdonald's. Very, high price, in, comparison to its book value that. May not be correct. You. Can see here that normally they're down here in the very low maybe. Six or seven let's. Go ahead I know that won't that won't help you know at all okay, and Verizon. Price. Of sales one point five price the book 4.0. Now. That is basically, all of the financials, I wanted, to look at besides moving, over at the dividend com so. In order we have Procter, and Gamble. Triple. M. Goldman. Sachs. Disney. Daddy. Pont. McDonald's. And Verizon. Okay so all these socks who's, been paying out the dividends the longest so we have Procter & Gamble with 61, years Triple. M with 69, years Goldman. Sachs with, six years you know during the financial crisis, they stopped. While Disney not, paying out difference for very long if you're giving an investor, dad DuPont has it increase divisions. At. All for quite a while. Okay. So, I got these in order now so in first place we have Procter & Gamble with 61, years of continued, dividend, growth since back in 1957. Second. Place we have Triple M with 59, years of dividend, growth since 1959. McDonald's. For 41 years of dividend, growth since back in 1977. Verizon. With the eleven years of dividend growth since, back in 2007. Goldman. Sachs since 2012. We have six years Disney. Since, 2017. And dal DuPont with. No payout increase, last year so. We take a look here as their information to run towards the bottom. We. Can see that since. It. Looks like they just started paying out dividends in 2018. So. If we take a look at all their, information, they. Just started paying out dividends, in. November. 2017. They paid out in December. 15. 2017. Interesting. There. So. The, company itself has you, know has good, potential. As. Far as the metrics go. But. If. You're a given investor, you may not. Go. To I normalize there. There. We are so. 10 years which is yeah 10 years, so. Positive, numbers there over the last 10 years not. A great one if you're investing for dividends, Disney, let's go ahead and pull up Disney last. 10 years up very positive, as far as financials, go they've. Been paying out difference since 2017. Oh. Rising. Dividends they've actually been paying out dividends prior, but. They. Did looks like they cut their dividend in 2014. And, then. Started. It, looks. Like they may have cut it in half there without a stock split, and then. Have been there going. Up steady for one year so, not an amazing one there either if you're investing for dividends Goldman Sachs they have a very low pat ratio dividend, growth Felix the last six years did. They cut their dividend during that 2008, recession. Looks like they I. Wouldn't. Consider that a huge pullback they yeah they froze, it go in and into, to that they. Froze their dividend going into the recession so it actually froze, it in 2006. They. Increase, it in 2009, and then, cut. It back again, so. Really not. Terrible. There. That. Cut really, wasn't a cut it was just like oh maybe I got I wouldn't, say it's a special pal either but. Interesting, there. For. Rise in 11 years McDonald's. 41. Years triple m 59. Years in Procter. & Gamble 61 years so those, are the socks out of the 15 stocks are currently negative that you guys should probably take a look at a little bit further Walt.
Disney. Started. At the top we have Procter, & Gamble Triple M Goldman, Sachs Walt Disney dal, DuPont McDonald's. And Verizon, I think all those have pretty good. Revenue. Net. Income free cash flow but. Of course do your own research go, over the balance sheet go, over the last quarterly, reports were they profitable, and profitable, or, not profitable, and profitable, but, how, much and debt are they do. They have any product, services that are working out for them take. A look and see. What. Is going on so that is basically I wanted, to make some sort of a video covering some of the stocks within the Dow that, were negative here at the day so you know if we could find something that could be some good buys right now essentially. If you believe in the stock it's, always going to be a good buy regardless, of the price whether it's moved up 10% or down 10% you, buy it you invest more into it as it dips and over, the long term as long as you bought one of these strong stocks that have had continued, growth in price you, know very good growth in their financial metrics their revenue net, income free cash flow year-over-year, then. Over. The long term you're gonna be benefitting, from it and out. On top so that is it for this video if you did like the vid we're gonna like comment. Subscribe for. The future financial, videos, that. Is it as the quick. Disclaimer I am NOT a financial advisor or tax professional, the, information provided in these videos is for entertainment, and fun this is not investment advice this is just me as a financial investor, myself trying to help others make their money work for them and that. Is it thank you guys for watching I will see you next time have a great day bye.
2018-06-14