3 Old Economy Dow Stocks Quietly Beat the Market: GS, CVS, CAT

According to a report from 24/7 Wall St., three old economy Dow Jones Industrial Average components have quietly outperformed the broader market over the past year. These stocks are Goldman Sachs (GS), CVS Health (CVS), and Caterpillar (CAT).

Outperformance

Over the past 12 months, the SPDR S&P 500 ETF Trust (SPY) returned 24.37%, while the Dow tracker returned 20.22%. However, the three stocks mentioned have beaten both benchmarks.

What They Have in Common

Despite operating in different sectors (financial services, healthcare, and industrials), these companies share several factors:

• Strong brand power: Each company has a well-established brand and significant market share.
• Diversified revenue: They generate revenue from multiple geographies and segments.
• Financial stability: All have strong balance sheets and stable cash flows.

Context

This outperformance comes amid market volatility due to geopolitical tensions and inflation. Investors are gravitating toward stocks with strong fundamentals and relative stability.

What This Means for Investors

These stocks represent defensive options in a portfolio, but past performance does not guarantee future results. Investors are advised to conduct thorough analysis before making any investment decisions.