The 3 Dow Stocks That Defied This Week’s Market Crash!

Stocks

Stock	Price	52 Week Range	Marketcap	EPS	Dividend Yield	Chart (24H)	Sector	Employees	Last Updated
Bank of America Corporation BAC	$44.57		335.66B	3.35	2.36%		Financial Services	213,000	2 seconds ago
JP Morgan Chase & Co. JPM	$270.81		752.59B	20.37	2.11%		Financial Services	316,043	8 seconds ago
Cisco Systems, Inc. CSCO	$65.42		259.06B	2.45	2.56%		Technology	90,400	1 second ago

The past week has been a whirlwind for Wall Street, culminating in a sharp, late-week decline that left many investors anxious. Just as the week seemed poised for a potential uptrend, the market took a nosedive during the last hour of trading on Friday. When the dust settled, the **Dow Jones Industrial Average (DJIA)** was down 1.23% for the week, while the **S&P 500** had fallen 1.14%.

Despite this dramatic downturn, three standout stocks in the DJIA defied the overall market trend, delivering impressive gains. Today, we delve into these top-performing stocks—**Bank of America**, **JPMorgan Chase**, and **Cisco Systems**—to understand what fueled their success and why they may still offer promising investment opportunities.

Editor's Note: Analysis and insight for this article were originally sourced sourced from our friends at The Motley Fool 

Bank of America Corporation

BAC

$44.57

1%

Bank of America (BAC)

**Bank of America** emerged as a shining star this week, boasting a commendable 3.2% gain. What drove this robust performance? Several favorable economic indicators played a crucial role:

Housing Market Recovery:
Fresh reports from RealtyTrac indicated a significant drop in foreclosure sales, which were down 18% sequentially in the first quarter and 22% from a year prior. This sharp decline serves as a robust indicator of a recovering housing market. As home values rise and loan defaults decrease, Bank of America’s mortgage portfolio stands to benefit immensely. In simple terms, fewer foreclosures bolster the bank’s financial health.

Steepening Yield Curve:
A notable increase in long-term interest rates this week created a steeper yield curve. For banks like Bank of America, a steeper yield curve translates to higher profit margins on loans—they can borrow at lower short-term rates and lend at higher long-term rates.

Positive Economic Indicators:
Despite mixed economic data overall, consumer confidence soared to levels not seen since July 2007. This optimistic outlook among consumers fuels growth prospects across sectors, indirectly benefiting banks as spending and borrowing tendencies improve.

These factors collectively paint a compelling picture for **Bank of America**. Its strategic positioning amidst these favorable conditions makes it a resilient choice for savvy investors looking to tap into the banking sector’s recovery and growth trajectory.

Analyst Ratings for Bank of America (BAC)

Summary of Analyst Outlook
Analysts from various sources suggest a positive outlook for **Bank of America (BAC)**. The stock has received a consensus price target of $41.70, with an implied 6.70% upside potential based on recent analyst ratings. The current price is $44.05, which falls within the predicted range set by analysts. The stock has generally been seen as a Buy, with some fluctuations in specific price targets. Bank of America has maintained a strong financial performance, with recent quarters showing improved sales and earnings compared to its industry averages.

JP Morgan Chase & Co.

JPM

$270.81

2%

JPMorgan Chase (JPM)

**JPMorgan Chase** mirrored Bank of America’s success, with its stock rising 1.7% this week. Several similar dynamics contributed to JPMorgan’s strong performance:

Benefits of a Recovering Housing Market:
Like Bank of America, JPMorgan reaped the benefits of a healing housing market. Lower foreclosure rates and rising home values strengthen the bank’s mortgage portfolio, reducing risk and enhancing profitability.

Profitability Boost from Steepening Yield Curve:
JPMorgan, too, stands to gain from the steepening yield curve. The ability to borrow short-term at low rates and lend long-term at higher rates is a critical factor driving bank profitability.

Diversified Revenue Streams:
JPMorgan’s recent financial results showcase its diversified operations, ranging from consumer banking to investment services. This diversification not only cushions the bank against sector-specific downturns but also positions it well to capture growth across different financial services segments.

These attributes make **JPMorgan** a solid pick for investors seeking stability and potential in these volatile times. Its diversified operations and strong financial footing provide a reliable foundation for sustained performance.

Analyst Ratings for JPMorgan Chase (JPM)

Summary of Analyst Outlook
Analysts are generally positive about **JPMorgan Chase & Co.’s** potential. The consensus rating is consistently a Moderate Buy, and the stock’s average price target suggests a modest growth potential. While some individual analysts have high price targets suggesting significant upside, the overall consensus points to a moderate price increase over the next 12 months.

Cisco Systems, Inc.

CSCO

$65.42

2%

Cisco Systems (CSCO)

Rounding out the trio, **Cisco Systems** saw a 2.5% increase in its stock price this week. A closer look at Cisco’s recent activities unveils why it stands out as a stock worth watching:

Interoperability Push in Telecommunications:
Cisco’s aggressive push for greater interoperability in the telecommunications sector is a key driver of its recent gains. By challenging Microsoft’s acquisition of Skype and advocating for Skype’s compatibility with Cisco’s TelePresence systems, Cisco is opening new market avenues and enhancing its growth prospects.

Technological Leadership:
Cisco maintains a strong foothold in the networking hardware and software markets, crucial for supporting the ever-growing global reliance on advanced technology and communication solutions. Its leadership in this domain bodes well for sustained growth and market relevance.

Solid Financial Performance:
Cisco’s robust financial health further strengthens its appeal to investors. Continuous advancements in tech solutions and a robust balance sheet make it a dependable choice for those looking to invest in the technology sector.

Analyst Ratings for Cisco Systems (CSCO)

Summary of Analysts’ Outlook
Analysts have a relatively positive outlook for **Cisco Systems (CSCO)**. The stock has a consensus moderate buy rating, indicating that most analysts feel it is a good choice for investment. The average price target of $54.73 reflects a potential gain of 15.51% from the current price of $47.38. Additionally, the stock has a high forecast of $70.00 and a low forecast of $48.00, demonstrating a wide range of predictions among the analysts.

While the broader market faced significant headwinds this week, **Bank of America**, **JPMorgan Chase**, and **Cisco Systems** distinguished themselves with their notable performance. These stocks embody resilience, strategic positioning, and growth potential—the key attributes that make them worthy additions to any investment portfolio. For investors navigating the choppy waters of the current economic landscape, these stocks offer a beacon of stability and promise.

Look beyond the market headlines and consider these top-performing Dow stocks as you chart your next investment move. With strong foundations and forward-looking strategies, they are well-positioned to continue their upward trajectory, delivering value and helping you achieve your financial aspirations.