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 is one Dow Jones stock that could be a good addition to your portfolio and two that may face some trouble.
Two Stocks to Sell:
Disney (DIS)
Market Cap: $203.1 billion
Founded by brothers Walt and Roy, Disney (NYSE: DIS) is a multinational entertainment conglomerate, renowned for its theme parks, movies, television networks, and merchandise.
Why Should You Dump DIS?
- Sizable revenue base leads to growth challenges as its 7.6% annual revenue increases over the last five years fell short of other consumer discretionary companies
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Forecasted free cash flow margin suggests the company will fail to improve its cash conversion over the next year
Disney is trading at $113.89 per share, or 17.3x forward P/E. Read our free research report to see why you should think twice about including DIS in your portfolio.
3M (MMM)
Market Cap: $85.05 billion
Producers of the first asthma inhaler, 3M Company (NYSE: MMM) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.
Why Do We Pass on MMM?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Estimated sales growth of 2.9% for the next 12 months is soft and implies weaker demand
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
At $160.56 per share, 3M trades at 19.1x forward P/E. Check out our free in-depth research report to learn more about why MMM doesn’t pass our bar.
One Stock to Buy:
Visa (V)
Market Cap: $670.6 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?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 12.9% annual sales growth over the last five years
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 17.9% exceeded its revenue gains over the last five years
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Visa’s stock price of $351.25 implies a valuation ratio of 27.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. 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 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-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.
