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.
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. Keeping that in mind, here are two Dow Jones stocks that will likely remain market leaders and one best left off your watchlist.
One Stock to Sell:
JPMorgan Chase (JPM)
Market Cap: $886 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 Are We Cautious About JPM?
- 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 7.5% for the last two years
- Inferior net interest margin of 2.6% means it must compensate for lower profitability through increased loan originations
- Estimated tangible book value per share growth of 7.4% for the next 12 months implies profitability will slow from its two-year trend
JPMorgan Chase’s stock price of $325.38 implies a valuation ratio of 2.5x forward P/B. Read our free research report to see why you should think twice about including JPM in your portfolio.
Two Stocks to Watch:
Amazon (AMZN)
Market Cap: $2.42 trillion
Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ: AMZN) is the world’s largest online retailer and provider of cloud computing services.
Why Could AMZN Be a Winner?
- Amazon revolutionized the way consumers shop. This isn’t the only tailwind to its impressive revenue growth, as its highly profitable AWS segment has also driven top-line momentum.
- The company's best-in-class revenue growth coupled with modest operating leverage on its past infrastructure investments has led to elite EPS growth over a multi-year period.
- Though dominant, Amazon's capital-intensive e-commerce business means its profitability is structurally lower than its pure-play tech peers. Can the company pull it up, or are we reaching a ceiling?
Amazon is trading at $226.64 per share, or 31x forward price-to-earnings. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
American Express (AXP)
Market Cap: $256.8 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 Is AXP a Top Pick?
- 12.1% annual revenue growth over the last five years surpassed the sector average as its products resonated with customers
- Share buybacks catapulted its annual earnings per share growth to 29.9%, which outperformed its revenue gains over the last five years
- Industry-leading 32.9% return on equity demonstrates management’s skill in finding high-return investments
At $372.61 per share, American Express trades at 22.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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 Tecnoglass (+1,754% 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.
