5 Dow Stocks Seeing an Outstanding 2014

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U.S. equity investors made out like bandits in 2013. The S&P 500, ostensibly representative of business performance, increased 26.39 percent between January 2 and December 31 of that year. The Dow Jones Industrial Average, representative of a relatively narrow but significant slice of the wild world of business, increased 23.59 percent over the same period, and the Nasdaq climbed 34.2 percent as investors chased yield into the riskier tech, Internet, and pharmaceutical sectors.

One-third of the way into 2014, the market is playing out a lot of like market watchers anticipated in 2013. After such an incredible rally, the markets were bound to lose steam in 2014. Not only were valuations edging into “overheated” territory — the price-to-earnings of the S&P 500 averaged 17.81 in 2013, compared to a historic average of about 15.51 — but by year’s end, the Federal Reserve had begun to taper asset purchases, cooling the monetary stimulus that many feared was inflating another bubble.

As of April 24, the S&P 500 is still a little hot, with a PE of about 18.38, but the price level of the index has increased just 2.55 percent, while the Dow is up less than half a percent.

But an index is just the sum of its parts, and just because the market has traded sideways this year to date doesn’t mean that certain companies haven’t had a strong start to 2014. Here are a couple of Dow components that have had outsized growth so far this year, and that could keep the pace.

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