The Dow has concluded the best first-half performance since the first-half of 2021. Wall Street’s blue-chip index gained 8.9% in first-half 2026. Dow’s momentum is likely to continue in the near term. Technically, at its current level of 52,305.24, the Dow is well above its 50-day and 200-day moving averages of 50,480.62 and 48,407.65, respectively.
Historically, it has been noticed in the technical analysis space that whenever the 50-day moving average line surges ahead of the 200-day moving average line, a long-term uptrend for the asset (in this case, the Dow Index) becomes a strong possibility.
At this stage, it will be prudent to invest in blue-chip stocks with a favorable Zacks Rank. Five such stocks are: Cisco Systems Inc. CSCO, Caterpillar Inc. CAT, Visa Inc. V, The Coca-Cola Co. KO and Amazon.com Inc. AMZN. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Cisco Systems Inc.
Zacks Rank #1 Cisco Systems has been benefiting from strong product orders from hyperscalers, enterprises, service providers, the public sector and cloud customers. In the last reported quarter, CSCO generated record-high revenues primarily attributable to its networking portfolio, powered by Silicon One, AI-native security solutions and operating systems.
CSCO expects total artificial intelligence (AI) infrastructure orders to reach $9 billion in fiscal 2026, an increase of 4.5X from fiscal 2025. Overall product orders grew by a sizable 35% year over year in the third quarter. Of this, data center switching orders grew 40% from the year-ago period supported by massive AI-powered data center buildout.
Cisco has decided to retrench 4,000 manpower as part of a sweeping restructuring effort. Management said that this restructuring has been guided to give more emphasis to areas like AI networking infrastructure, network security, silicon and optics.
Cisco Systems has an expected revenue and earnings growth rate of 7.6% and 10.6%, respectively, for the next year (ending July 2027). The Zacks Consensus Estimate for next year’s earnings has improved 0.9% over the last 30 days.
Caterpillar Inc.
Zacks Rank #1 Caterpillar is gaining from rising AI data-center-related power demand. As big technology companies establish data centers globally to support their generative AI applications, CAT is witnessing robust order levels for reciprocating engines for data centers. The company is planning to double its output with a multi-year capital investment.
CAT has also revised its target of growing Power Generation sales to more than 3.0X from the earlier stated 2.0X target by 2030. CAT announced another agreement to provide PROPWR up to 2.1 gigawatts of large gas generator sets for prime power generation in support of data center, oil and gas and industrial applications.
Caterpillar has an expected revenue and earnings growth rate of 13.2% and 29.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.1% in the last seven days.
Visa Inc.
Zacks Rank #2 Visa’s scale and brand strength keep it at the center of global digital payments, with growth still driven by higher payment volumes, cross-border activity, and increasing transaction counts.
V’s fiscal second-quarter results showed broad momentum across consumer payments, commercial and money movement solutions, and value-added services. Management guides to low-teens revenue growth for fiscal 2026.
Investments in agentic commerce and stablecoin settlement, alongside targeted acquisitions and disciplined capital returns, should continue to extend its network value over time. With fraud cases on the rise and AI adoption increasing, V’s services are in high demand. Visa has embedded AI and generative AI into over 100 products, primarily for fraud prevention and cybersecurity.
Visa has an expected revenue and earnings growth rate of 13.4% and 14.1%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 2% over the last 60 days.
The Coca-Cola Co.
Zacks Rank #2 Coca-Cola is benefiting from the strength of its portfolio breadth, consistent share gains and improving margins driven by pricing and productivity efforts. Innovation, marketing and digital initiatives are enhancing consumer engagement and execution, while diversified categories reduce risk.
KO projects steady organic revenue and EPS growth, backed by a durable global distribution moat. Our model predicts KO’s organic revenue growth of 4.8% and comparable EPS to grow 8.8% for 2026. KO’s robust cash generation supports reinvestments and sustainable shareholder returns, including continued dividend growth.
Coca-Cola has an expected revenue and earnings growth rate of 3% and 8.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.9% over the last 60 days.
Amazon.com Inc.
Zacks Rank #2 Amazon.com’s international expansion and diversification across e-commerce, AWS cloud services, advertising and streaming create multiple revenue streams while reducing concentration risk.
AI integration throughout AMZN’s operations represents a transformative catalyst for efficiency gains and new revenue opportunities across the entire business ecosystem. AWS provides cutting-edge AI and machine learning services to enterprise customers, positioning Amazon as a leader in the rapidly expanding generative AI market.
AMZN’s chips business exceeded a $20 billion annual revenue run rate, with Graviton, Trainium and Nitro growing triple-digit percentages year over year, and AWS secured commitments from OpenAI and Anthropic for Trainium capacity. AMZN deploys AI extensively in its e-commerce platform for personalized recommendations, inventory management, and dynamic pricing optimization that enhances profitability.
Logistics operations benefit from AI-powered routing algorithms and warehouse automation that reduce delivery times and operational costs significantly. AMZN’s substantial investments in AI infrastructure and talent development create formidable competitive barriers while unlocking innovative capabilities that drive customer engagement, operational excellence, and margin improvement across all business segments.
Amazon.com has an expected revenue and earnings growth rate of 15.3% and 23.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.7% over the last 60 days.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
5 Stocks Our Experts Predict Could Double In the Next Year
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