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.
Finding the best companies in the Dow Jones isn’t always straightforward, and that’s why we started StockStory. Keeping that in mind, here are two Dow Jones stocks positioned for long-term growth and one that may struggle.
One Stock to Sell:
Honeywell (HON)
Market Cap: $121.9 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 Are We Hesitant About HON?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Sales are projected to tank by 3.3% over the next 12 months as demand evaporates
- Eroding returns on capital suggest its historical profit centers are aging
At $192.26 per share, Honeywell trades at 18.5x forward P/E. To fully understand why you should be careful with HON, check out our full research report (it’s free for active Edge members).
Two Stocks to Watch:
Microsoft (MSFT)
Market Cap: $3.56 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 Will MSFT Beat the Market?
- 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 is trading at $477.35 per share, or 29.6x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Procter & Gamble (PG)
Market Cap: $326.7 billion
Founded by candle maker William Procter and soap maker James Gamble, Proctor & Gamble (NYSE:PG) is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.
Why Are We Fans of PG?
- Unparalleled brand awareness is evident in its $84.93 billion revenue base, which gives it advantageous terms because retailers must stock its products
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 25.6%
- Robust free cash flow margin of 18.6% gives it many options for capital deployment
Procter & Gamble’s stock price of $140.43 implies a valuation ratio of 19.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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