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How to Trade These 2 Dow Giants: Strategists

Caterpillar was the top Dow gainer in November, while Boeing was the biggest laggard. What is the outlook for both stocks for the rest of the year? Brian Rayle, managing director and equity research analyst at Northcoast Research, and Alex Hamilton, aerospace and defense analyst at Early Bird Capital, shared their outlooks.

Caterpillar Outlook:

“The biggest thing that has allowed the company to outperform not only in November, but over the last couple months, is that the company has followed a trend in many of the industrial stocks, which is to go more towards emerging and developing markets,” Rayle told CNBC.

Rayle added that Caterpillar’s outperformance could also be attributed to the firm’s acquisition of Bucyrus International.

Boeing Outlook:

Boeing's “787 [Dreamliner]—that’s why the stocks have held off,” Hamilton said. “So there’s a little bit of uncertainty surrounding [the stock].”

Going forward, however, Hamilton said Boeing stock is a "great buy."

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Scorecard—What They Said:

  • Hamilton's Previous Appearance on CNBC (Nov. 18, 2010)
  • Rayle's Previous Appearance on CNBC (Aug. 20, 2010)

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More Market Advice—Read and Decide:

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CNBC Slideshows:

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Disclosures:

Rayle does not own shares of CAT. Hamilton does not own shares of BA.

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Disclaimer