In the shadow of the Dow Jones Industrial Average’s 27% runup over the past year, investors are understandably hesitant to plow into stocks as they tiptoe to new record highs. We’ve simply gone a little too long without a decent correction in the Dow Jones’ component stocks, and one could be in the offing with little to no warning.
Yet, the mere possibility of a pullback doesn’t mean one is inevitable. It also doesn’t mean investors should ignore opportunities when they present themselves. It simply means investors should think defensively here – even when seeking out growth – and consider well-positioned blue-chip names that also are better shielded from pullbacks than smaller, less-established outfits might be.
Numerous Dow Jones stocks have the potential for impressive growth, and despite the index’s perch at all-time highs, a handful of these constituents even look a little underestimated. These seven blue chips may have more to give to new money than some investors suspect.