The Dow Jones (^DJI) is made up of 30 of the most established and influential companies in the market. But even blue-chip stocks can struggle - some are dealing with slowing growth, outdated business models, or increasing competition.
Just because a company is in the Dow Jones doesn’t mean it’s a great investment, and StockStory is here to help you separate winners from laggards. That said, here is one Dow Jones stock that will likely remain a market leader and two that may face some trouble.
Two Stocks to Sell:
Salesforce (CRM)
Market Cap: $148.7 billion
With its cloud-based platform named after its stock ticker symbol CRM (Customer Relationship Management), Salesforce (NYSE: CRM) provides customer relationship management software that helps businesses connect with their customers across sales, service, marketing, and commerce.
Why Does CRM Give Us Pause?
- Underwhelming ARR growth of 10.3% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
- Anticipated sales growth of 11% for the next year implies demand will be shaky
- Operating margin improvement of 1 percentage points over the last year demonstrates its ability to scale efficiently
Salesforce is trading at $181.28 per share, or 3.8x forward price-to-sales. To fully understand why you should be careful with CRM, check out our full research report (it’s free).
Honeywell (HON)
Market Cap: $135 billion
Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ: HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.
Why Do We Steer Clear of HON?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Efficiency has decreased over the last five years as its operating margin fell by 4 percentage points
- Eroding returns on capital suggest its historical profit centers are aging
At $217.79 per share, Honeywell trades at 20.2x forward P/E. Read our free research report to see why you should think twice about including HON in your portfolio.
One Stock to Buy:
Visa (V)
Market Cap: $600.6 billion
Processing over 829 million transactions daily and connecting billions of cards to 150 million merchant locations worldwide, Visa (NYSE: V) operates one of the world's largest electronic payments networks, facilitating secure money movement across more than 200 countries through its VisaNet processing platform.
Why Is V a Top Pick?
- Impressive 15% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 20.1% exceeded its revenue gains over the last five years
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Visa’s stock price of $318.80 implies a valuation ratio of 23.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
