These Dow stocks are cheap and have more upside as index reaches key milestone

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Stock Markets,Amazon.Com Inc,Dow Jones Industrial Average

CNBC Pro screened for cheap Dow stocks with upside potential as the blue-chip index reached 40,000 for the first time.

The Dow Jones Industrial Average reached the 40,000 milestone level , but investors can still find inexpensive growth opportunities in the index. The recent gains this week have come on the back of April's consumer price index data, which showed inflation slightly easing. Expectations of interest rate cuts powered bullish market sentiment starting Wednesday, driving the major averages higher. The Dow is now up 5.9% in May and 6.2% year to date.

2% upside from Wednesday's close. Although recent first-quarter earnings topped expectations, profit fell year-over-year on headwinds to its refineries and international gas business. The company is currently in a dispute with Exxon over Hess Corporation's oil assets in Guyana, which could extend into 2025. Payments processing company Visa could add another 10.1%, according to the average analyst price target on the stock. The stock's current forward P/E is at 27.

 

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