2 Cheap Dow Jones Stocks to Buy Hand Over Fist, and 1 to Avoid
The Dow Jones Industrial Average has tumbled nearly 16% this year in reaction to recession fears and rising interest rates. Some stocks in the 30-company index have fallen by even more. For long-term investors, that presents an opportunity as the stocks that make up the DJIA are often described as blue chip stocks and offer great opportunities to also be described as long-term winners. Unfortunately, there are also a few that deserve hard passes.
Let's take a closer look at two Dow Jones stocks that are worth a closer look and one that is probably better avoided right now.
The release of the iPhone 14 could make Apple (NASDAQ: AAPL) more profitable than it already is. Apple enthusiasts may have noticed a subtle change to the iPhone 14 mix from previous models. This year's versions include two Pro versions (Pro and Pro Max) and no iPhone Mini. The main benefits of the Pro versions are the robust cameras and faster processors, and those features require more memory to operate. The additional memory in the Pro versions is cheap. Since the upgraded versions carry a much higher price tag, they're much more profitable smartphones than versions with less memory. Apple captures a 90% gross margin on the price difference between the Pro versions and versions with less memory.
Source Fool.com
