The Dow Jones (^DJI) is home to corporate giants, but size alone doesn’t guarantee success. A few of these companies are struggling with weak fundamentals, paradigm shifts, or poor execution.
Not all Dow Jones stocks are worth owning - which is why we built StockStory to help you invest wisely. That said, here are two Dow Jones stocks that will likely remain market leaders and one best left off your watchlist.
One Stock to Sell:
Disney (DIS)
Market Cap: $180.4 billion
Founded by brothers Walt and Roy, Disney (NYSE: DIS) is a multinational entertainment conglomerate, renowned for its theme parks, movies, television networks, and merchandise.
Why Do We Avoid DIS?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 10.8% over the last five years was below our standards for the consumer discretionary sector
- Low free cash flow margin of 9.4% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Low returns on capital reflect management’s struggle to allocate funds effectively
Disney is trading at $103.85 per share, or 13.8x forward P/E. If you’re considering DIS for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Boeing (BA)
Market Cap: $173.9 billion
One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE: BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.
Why Does BA Catch Our Eye?
- Unit sales averaged 69.7% growth over the past two years and imply healthy demand for its products
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Additional sales over the last two years increased its profitability as the 47.6% annual growth in its earnings per share outpaced its revenue
At $220.31 per share, Boeing trades at 553.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
American Express (AXP)
Market Cap: $213 billion
Recognizable by its iconic green logo and the slogan "Don't leave home without it," American Express (NYSE: AXP) is a global payments company that issues credit and charge cards, processes merchant transactions, and offers travel and lifestyle benefits to consumers and businesses.
Why Should You Buy AXP?
- Annual revenue growth of 15.5% over the last five years was superb and indicates its market share increased during this cycle
- Performance over the past five years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 33% return on equity demonstrates management’s skill in finding high-return investments
American Express’s stock price of $313.00 implies a valuation ratio of 17.4x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
