While the Dow Jones (^DJI) represents industry leaders, not every stock in the index is a safe bet. Some are facing headwinds like declining demand, rising costs, or disruptive new competitors.
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 positioned for long-term growth and one best left off your watchlist.
One Stock to Sell:
JPMorgan Chase (JPM)
Market Cap: $781.9 billion
Tracing its roots back to 1799 when its earliest predecessor was founded by Aaron Burr, JPMorgan Chase (NYSE: JPM) is a leading financial services company offering investment banking, consumer banking, commercial banking, and asset management services globally.
Why Does JPM Fall Short?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 6.9% for the last two years
- Net interest margin of 2.6% reflects its high servicing and capital costs
- Efficiency ratio is expected to worsen by 2.3 percentage points over the next year
JPMorgan Chase is trading at $290.31 per share, or 2.1x forward P/B. If you’re considering JPM for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Microsoft (MSFT)
Market Cap: $2.84 trillion
Originally named "Micro-soft" for microcomputer software when founded in 1975, Microsoft (NASDAQ: MSFT) is a global technology company that develops software, cloud services, devices, and AI solutions for consumers, businesses, and organizations worldwide.
Why Is MSFT a Top Pick?
- Microsoft is one of the great brands not just in tech but all of business. It produces mission-critical software and bundles it together, resulting in cream-of-the-crop gross margins.
- The company's elite unit economics lead to robust profit margins that improve over time. This speaks to the scale advantages and operating efficiency across its diverse portfolio, which spans everything from Office and Azure to Minecraft.
- Microsoft has a virtuous cycle of returns. Its dominant market position enables it to generate strong free cash flow, and it reinvests these funds into promising ventures that further strengthen its competitive moat.
Microsoft’s stock price of $383.86 implies a valuation ratio of 21.7x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free.
Travelers (TRV)
Market Cap: $63.9 billion
Tracing its roots back to 1853 when it insured travelers against accidents on steamboats and railroads, Travelers (NYSE: TRV) provides a wide range of commercial and personal property and casualty insurance products to businesses, government units, associations, and individuals.
Why Are We Positive On TRV?
- Pre-tax profit margin expanded by 7.8 percentage points over the last two years as it scaled and became more efficient
- Share repurchases over the last two years enabled its annual earnings per share growth of 45.2% to outpace its revenue gains
- Capital generation for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust book value per share growth of 19.7%
At $298.57 per share, Travelers trades at 1.8x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
