At the moment, analysts think INTC is the most undervalued Dow stock, with a price target nearly 30% above its current price. INTC is followed by HD, MMM, and GE. Only MRK is considered overvalued, and even that is by a slim margin of 64 bps:
Using the price targets of the 30 stocks, we come up with a price target on the index of 12,435, 14.26% above its current level of 10,900. From these figures we can conclude one of two things: either the future looks pretty bright for U.S. markets, or (as is more often the case) analysts are being too optimistic.