It was another wild week on Wall Street, but at the end of the week the Dow Jones Industrial Average was up 0.88% and the S&P 500 had gained 0.78%. Early in the week, stocks dropped because investors feared the Federal Reserve would taper off a bond-buying program that’s helped keep interest rates low, but by the end of the week, losses had reversed on another pretty mediocre employment report.
Pfizer Inc. (NYSE:PFE) led the Dow this week by gaining 3.8%. The company partnered with a company called CytomX to build antibody-drug conjugate products to fight cancer. The company can get an upfront payment of $25 million and a much as $610 million if sales goals are reached. Cancer drugs are really the next frontier for drug companies, and hopefully this is a winner for Pfizer Inc. (NYSE:PFE).
Verizon Communications Inc. (NYSE:VZ) was second in the Dow this week with a 3.6% gain — surprising, considering how much the company was in the headlines. The Guardian broke a story about Verizon’s cooperating with an NSA requirement to turn over information about both domestic and international phone calls, and another privacy debate erupted around the country. Verizon Communications Inc. (NYSE:VZ) didn’t have much of a choice considering the court order, so you can’t really blame the company for cooperating. If we focus on the longer term, I think Verizon Communications Inc. (NYSE:VZ) is still in prime position in the wireless market, and the NSA debate will grab headlines for only a short time. A 4.2% dividend yield and a wide competitive moat make this one of the best stocks on the Dow.
Rounding out the top three this week was The Coca-Cola Company (NYSE:KO), which gained 3.6%. Sometimes it takes a wild week like this for the market to appreciate a steady company like The Coca-Cola Company (NYSE:KO). The soft-drink giant has an incredible competitive advantage around the globe and has managed to update its business as consumers have trended to healthier drinks in recent years. A 17.7 forward P/E ratio may sound expensive for some stocks, but this company will be around in another 100 years, and sometimes it takes turbulent markets for investors to realize that.
The article The Top 3 Stocks on the Dow This Week originally appeared on Fool.com and is written by Travis Hoium.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola.
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