On Friday, October 24, US stocks reached new record highs as investor sentiment was positive because inflation data showed prices rising a little slower than expected. This offered some hope that the Federal Reserve can continue to cut interest rates, which would support the economy and justify higher stock prices.
The consumer price index (CPI) report for September, which was released after a delay caused by the US government shutdown, went up by 0.3% on the month to bring the annual inflation rate to 3%, according to the Bureau of Labor Statistics. This was slightly below what economists polled by the Dow Jones had estimated, which was a 0.4% increase for the month and 3.1% for the annual inflation rate.
Core CPI, which excludes food and energy prices, came in at 0.2% for September and 3% on a 12-month basis. These numbers were also slightly less than the Dow Jones estimates of 0.3% and 3.1%, respectively.
After the CPI data was released, traders became more confident that the Fed would cut rates at its last two meetings of 2025. The chances of a rate cut in December jumped from about 91% to 98.5%, according to the CME FedWatch tool.
Major indexes finished their second week of gains on Friday. All three major averages closed at record levels. The Dow Jones Industrial Average reached above the 47,0000 level for the first time after rising 1.01% on Friday to finish at 47,207.12. The S&P 500 gained 0.79% on Friday and the Nasdaq Composite added 1.15%.
As of October 24, the Dow Jones has gained 17.35% in the past 6 months. In comparison, the S&P 500 gained 22.84% while the tech-heavy Nasdaq Composite climbed by 33.62% during the same time.
With this background in mind, let’s take a look at the 10 best Dow stocks to buy according to Wall Street Analysts.
Stocks
Our Methodology
To compile our list of the 10 best Dow stocks to buy according to analysts, we looked at the 30 stocks that make up the Dow Jones Industrial Average. We focused on the top 10 stocks in the index that analysts believe have the most potential for growth. Finally, we ranked the 10 best Dow stocks to buy based on their average price target upside potential according to analysts as of October 24, 2025.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q2 2025 database of 983 elite hedge funds.
Why do we care about what hedge funds do? 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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Dow Stocks to Buy According to Wall Street Analysts
10. The Sherwin-Williams Company (NYSE:SHW)
Average Price Target Upside Potential According to Analysts: 15.23%
Number of Hedge Fund Holders: 67
The Sherwin-Williams Company (NYSE:SHW) is one of the best Dow stocks to buy according to Wall Street analysts. On October 10, Wells Fargo reduced its price target for The Sherwin-Williams Company (NYSE:SHW) from $400 to $395 and maintained an Overweight rating.
This decision comes ahead of The Sherwin-Williams Company’s (NYSE:SHW) announcement of its Q3 2025 financial results, scheduled for release on October 28.
Wells Fargo acknowledged that there are ongoing challenges in the coatings division. However, the firm noted that The Sherwin-Williams Company’s (NYSE:SHW) earnings are holding up much better than most other companies in this industry. Wells Fargo continues to have a positive long-term outlook on the company.
The Sherwin-Williams Company (NYSE:SHW) is an American company that manufactures, develops, distributes, and sells paints, coatings, and related products.
9. NVIDIA Corporation (NASDAQ:NVDA)
Average Price Target Upside Potential According to Analysts: 15.46%
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the best Dow stocks to buy according to Wall Street analysts. On October 20, NVIDIA Corporation (NASDAQ:NVDA) shared that it is working with Google Cloud to expand access to accelerated computing with an aim to revolutionize the full spectrum of enterprise workloads and accelerate Enterprise AI and Industrial Digitization.
Google Cloud also announced the general availability of G4 virtual machines, which use RTX PRO 6000 Blackwell Server Edition GPUs by NVIDIA Corporation (NASDAQ:NVDA). Additionally, NVIDIA Omniverse and NVIDIA Isaac Sim have been made available as virtual machine images (VMIs) on the Google Cloud Marketplace. This will help major industries such as manufacturing, automotive, and logistics unlock physical AI-driven applications.
This combination of Google Cloud and NVIDIA Corporation (NASDAQ:NVDA) technologies provide a versatile and powerful multi-workload platform for enterprises to complete their most demanding tasks on Google Cloud.
Besides Omniverse, Google Cloud users will be able to benefit from the full NVIDIA Corporation (NASDAQ:NVDA) software stack to speed up a variety of high-demand workloads like Agentic AI, Scientific and High-Performance Computing, and Design and Visual Computing.
NVIDIA Corporation (NASDAQ:NVDA) is an American multinational technology company known for producing graphics processing units (GPUs), AI hardware and software, and high-performance computing (HPC) solutions.
