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. That said, here is one Dow Jones stock that could be a good addition to your portfolio and two that may struggle.
Two Stocks to Sell:
Nike (NKE)
Market Cap: $90.3 billion
Originally selling Japanese Onitsuka Tiger sneakers as Blue Ribbon Sports, Nike (NYSE:NKE) is a global titan in athletic footwear, apparel, equipment, and accessories.
Why Are We Out on NKE?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 2.9 percentage points
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $61.70 per share, Nike trades at 32.5x forward P/E. If you’re considering NKE for your portfolio, see our FREE research report to learn more.
Boeing (BA)
Market Cap: $147.9 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 Do We Avoid BA?
- Disappointing unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Cash-burning history makes us doubt the long-term viability of its business model
- EBITDA losses may force it to accept punitive lending terms or high-cost debt
Boeing’s stock price of $196.66 implies a valuation ratio of 154.9x forward P/E. To fully understand why you should be careful with BA, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Goldman Sachs (GS)
Market Cap: $246.7 billion
Founded in 1869 as a small commercial paper business in New York City, Goldman Sachs (NYSE:GS) is a global financial institution that provides investment banking, securities, asset management, and consumer banking services to corporations, governments, and individuals.
Why Do We Like GS?
- Solid 13.5% annual revenue growth over the last two years indicates its offering’s solve complex business issues
- Share buybacks catapulted its annual earnings per share growth to 53.7%, which outperformed its revenue gains over the last two years
- Lending discipline and capital management prowess led to above-market annual tangible book value per share growth of 10% over the last five years
Goldman Sachs is trading at $791 per share, or 14.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.