The best performing Dow Jones Industrial Average (Dow Jones Indices:.DJI) component this week has surprisingly been The Procter & Gamble Company (NYSE:PG), as shares have risen by 2.05%. The main reason that it’s a surprise is that there hasn’t been any catalyst for the move higher and, at its current price, the stock is not what I’d call undervalued by any means. The Procter & Gamble Company (NYSE:PG)’s price-to-earnings ratio currently sits at 17.6, with a forward P/E of 18. Granted, The Procter & Gamble Company (NYSE:PG) pays a strong 3.1% dividend and, even with the recent run-up in interest rates, 30-year Treasuries are still only paying around 3.5%. This makes The Procter & Gamble Company (NYSE:PG) still look rather attractive and is perhaps the reason investors have been buying shares.
The other big winner was United Technologies Corporation (NYSE:UTX), which rose in value by 1.92%. Once again, the bulk of this move came on Monday, when the stock closed the day up almost 2%. My colleague Dan Caplinger noted at the time that the company is well positioned to benefit from a recovering economy; but perhaps, even more so, it will benefit from a recovering construction industry because of its elevator, heating, and air-conditioning units. But, while the company waits for construction to really heat up, its aerospace division, and recently purchased Goodrich division, should help push growth
The article Dow’s Biggest Winner’s and Loser’s so Far This Week originally appeared on Fool.com and is written by Matt Thalman.
Fool contributor Matt Thalman owns shares of Microsoft. Check back Monday through Friday as Matt explains what caused the Dow’s winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter @mthalman5513.The Motley Fool recommends Intel and Procter & Gamble. The Motley Fool owns shares of Intel and Microsoft.
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