In this article, we will look at the 12 Best Dow Stocks to Invest In Right Now.
Investors often think that great stocks need to be discovered through extreme research or by sifting through obscure companies. This isn’t always true. Great stocks are often companies that show excellence in their underlying business, often dominating their sector peers. The Dow Jones Industrial Average represents 30 companies that include some of America’s finest businesses. So when it comes to looking for great stocks, the DOW is probably the best place to begin.
Since these are already among the best businesses in the country, the challenge then becomes identifying the best of the best. This is achieved by going through their competitive industry positioning today, along with their earnings growth and valuation.
For example, the stock of a great business may be struggling today because the underlying business is going through a rough patch, creating an opportunity for investors to buy at an attractive valuation. Others may be showing great business strength but trading at extreme valuations or at the peak of the earnings cycle.
Similarly, stock market volatility may result in depressed stock prices, which, in turn, create similar opportunities. Jay Woods, Chief Market Strategist at Freedom Capital Markets, expects this volatility to hit the market soon, and investors should be ready. He said while speaking to the Schwab Network:
I think we’re going to hit some turbulence in the coming weeks… we’re dealing with inflationary fears, we still have elevated gas prices, the housing market hasn’t fixed itself… and I think we’re going to hit some stumbles.
Investors need to be ready to pounce on opportunities like these. To discover such value opportunities, we decided to look at the DOW stocks that are the best to invest in right now.
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Our Methodology
To come up with our list of 12 best Dow stocks to invest in right now, we started with the list of the 30 companies in the Dow Jones Industrial Average index. We then filtered out companies with at least a 10% potential upside according to analysts. These companies are also popular among hedge funds, and we have ordered our list in ascending order by the number of hedge funds currently invested in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Note: All share price data is as of market close on July 5, 2026.
12. Nike Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 71
On July 3, Joseph Civello, an analyst at Truist Financial, reiterated a Buy rating on Nike Inc. (NYSE:NKE) and set a price target of $47. The analyst update follows the company’s quarterly earnings report announced on June 30. The company reported revenue of $11 billion, which beat the Wall Street consensus of $10.85 billion. The earnings per share came in at $0.20, which exceeded analysts’ estimates of $0.12. Despite comfortably beating Wall Street estimates, investors should note that the company’s Q4 revenues were down 1% on a reported basis and 4% on a currency-neutral basis. Moreover, the company recognized a one-time $986 million benefit tied to tariff claims, which lifted reported profit and gross margin.
Going forward, for the first quarter of fiscal 2027, NKE expects revenue to decline in the low- to mid-single digits, with gross profit margin slightly positive.
Management was asked about future growth drivers, and CEO Elliot Hill said the company’s strength in sports remains a key competitive advantage supporting the broader brand. He reiterated that the Sportswear segment plans to introduce more than a dozen new footwear styles in the second half of fiscal 2027.
NIKE Inc. (NYSE:NKE) is a global sportswear company that designs, develops, markets, and sells casual and athletic footwear, equipment, apparel, and accessories. The company’s portfolio consists of brands such as NIKE, Chuck Taylor, One Star, Jordan, and Jumpman.
11. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 75
According to a report released on July 1, BMO Capital analyst Daniel DiCicco reiterated a Buy rating on Honeywell International Inc. (NASDAQ:HON) with a price target of $253. The price target reflects a further 10% upside from current levels. The firm’s assigned price target is slightly below the median Wall Street analyst price target of $254, based on 27 analysts covering the stock.
Adding to the day’s analyst activity, Citi also revised its outlook on HON. In contrast to BMO Capital, Andrew Kaplowitz from Citi lowered the firm’s price target on Honeywell International Inc. (NASDAQ:HON) from $269.40 to $260. However, the analyst kept a Buy rating on the stock. The downward-revised price target is still higher than the median Wall Street analysts’ price target of $254 based on 27 analysts covering the stock. The firm’s price target suggests an additional 13% upside from here on.
Citi updated its outlook on Honeywell following the company’s recent spinoff. The firm believes HON’s more focused automation business is now better positioned for future growth. It expects the company to deliver steadier and more predictable sales growth over the long term.
Honeywell International Inc. (NASDAQ:HON) operates across multiple business areas, including industrial automation, aerospace technologies, building automation, and energy and sustainable solutions. The company operates across Europe, the United States, and other international markets.
10. Boeing Co (NYSE:BA)
Number of Hedge Fund Holders: 99
During the last few trading sessions, Boeing Co (NYSE:BA) stock has seen positive momentum. On July 1, Citi analyst John Godyn assigned a Buy rating to Boeing Co (NYSE:BA) and set a target price of $260. The analyst’s price target suggests a further 14.7% upside, which sits just below the median Wall Street analyst upside of 21.4%.
On July 2, the Government Accountability Office, in its annual assessment of US weapons programs, said Boeing has reduced some of the technical challenges that have delayed its delivery of two jets that will serve as Air Force One. The company is expected to deliver the first modified jet by 2028. It has improved several key areas, including the aircraft’s environmental control system, cabin pressure issues, and the hiring and retention of more qualified mechanics.
However, the planes still need more detailed work, including final interior designs for the aircraft, wiring, installation, and fixing structural defects. Moreover, repairs of stress corrosion cracks are still in progress and are expected to be finished this year. Despite the progress, BA is still three years behind its original delivery schedule. While delays in two jets may seem immaterial, they point to an execution risk and a lack of management quality for shareholders.
Boeing Co (NYSE:BA) together with its subsidiaries, designs, develops, manufactures, and supports commercial jetliners, military aircraft, satellites, missile defense, and launch systems and services worldwide. The company operates through three segments. These include Commercial Airplanes, Defense, Space & Security, and Global Services. The company was incorporated in 1916 and is based in Arlington, Virginia.
