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.
8. Honeywell International Inc. (NASDAQ:HON)
Average Price Target Upside Potential According to Analysts: 15.68%
Number of Hedge Fund Holders: 67
Honeywell International Inc. (NASDAQ:HON) is one of the best Dow stocks to buy according to Wall Street analysts. On October 24, Barclays increased its price target for Honeywell International Inc. (NASDAQ:HON) from $265 to $270 while maintaining an Overweight rating.
This decision came after the company reported Q3 results. Honeywell International Inc. (NASDAQ:HON) recorded sales of $10.4 billion, up 7% in reported sales and up 6% in organic sales. The company surpassed the high end of its previous guidance.
Honeywell International Inc. (NASDAQ:HON) reported EPS of $2.86 and Adjusted EPS of $2.82. Both were above the high end of the company’s previous guidance. The company also reported that orders were up by 22%. This growth was mainly supported by Aerospace Technologies and Energy and Sustainability Solutions. Honeywell International Inc. (NASDAQ:HON) raised its full-year guidance for organic growth and Adjusted EPS.
Barclays noted that the company’s aerospace business is performing well. The firm’s analyst told investors in a research note that Honeywell International Inc. (NASDAQ:HON) could see its value rise because of strong organic growth.
Honeywell International Inc. (NASDAQ:HON) is an American multinational corporation that provides advanced technologies and solutions through its Aerospace Technologies, Building Automation, Energy and Sustainability Solutions, and Industrial Automation business segments.
7. Visa Inc. (NYSE:V)
Average Price Target Upside Potential According to Analysts: 15.72%
Number of Hedge Fund Holders: 167
Visa Inc. (NYSE:V) is one of the best Dow stocks to buy according to Wall Street analysts. On October 23, Citi initiated coverage on Visa Inc. (NYSE:V), giving the stock a Buy rating with a $450 price target.
Citi’s analyst pointed out that Visa Inc.’s (NYSE:V) large network, strong position in payment processing, and high-value brand are “formidable moats” that make the company “highly defendable.”
Additionally, Citi’s analyst believes that solid ongoing trends in cross-border payments and the changes in pricing contribute to a positive outlook on Visa Inc. (NYSE:V).
Visa Inc. (NYSE:V) is an American multinational digital payments company that provides a wide range of payment products and payment processing to facilitate electronic payments in over 200 countries and territories.
6. Amazon.com, Inc. (NASDAQ:AMZN)
Average Price Target Upside Potential According to Analysts: 18.20%
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best Dow stocks to buy according to Wall Street analysts. On October 24, Stifel increased its price target on Amazon.com, Inc. (NASDAQ:AMZN) from $260 to $269 and kept a Buy rating.
Stifel noted that Amazon.com, Inc.’s (NASDAQ:AMZN) management’s commentary about average selling prices (ASPs) not going up much in Q2 2025 probably is also true for Q3. This suggests consumer spending has been stable. The research firm kept its forecasts largely unchanged. Stifel also suggested that the expansion of Same-Day grocery delivery for Prime members could bring upside in 2026.
Previously, on October 22, Benchmark also reaffirmed its Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) with a $260 price target. The research firm is confident that the company’s advertising and Prime Video services will eventually start contributing, which can produce solid margins at scale.
Benchmark expects AWS growth to speed up again and operating income margins to improve. The firm also noted that a big AI contract, which is not currently expected, would make Amazon.com, Inc.’s (NASDAQ:AMZN) position much stronger.
Amazon.com, Inc. (NASDAQ:AMZN) is an American technology company that focuses on e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
5. Microsoft Corporation (NASDAQ:MSFT)
Average Price Target Upside Potential According to Analysts: 20.61%
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the best Dow stocks to buy according to Wall Street analysts. On October 24, TD Cowen reaffirmed its Buy rating on Microsoft Corporation (NASDAQ:MSFT) with a price target of $640.
This decision comes ahead of the company’s first-quarter earnings report for its fiscal year 2026, which is scheduled for October 29. TD Cowen’s research shows that activity in Azure data centers has increased over the past month, which indicates strong demand for AI and potential medium-term growth for Microsoft Corporation’s (NASDAQ:MSFT) cloud business.
For FY26 Q1, TD Cowen expects Intelligent Cloud revenue to grow by 25% in constant currency, slightly higher than the Street’s estimate of 24.5% growth. The firm projects Productivity and Business Processes to see growth of 12%, higher than the Street’s consensus of 11%.
TD Cowen models Azure growth at 37% in constant currency, which aligns with the Street’s estimates. The firm suggests that Azure growth could possibly beat expectations by 2% or more.
The research firm expects Microsoft Corporation (NASDAQ:MSFT) to achieve revenue of $80.9 billion for FY2026 Q1 and EPS of $3.83. These are both higher than the Street’s estimates of $80.1 billion in revenue and $3.80 in EPS.
Microsoft Corporation (NASDAQ:MSFT) is an American technology company that develops and markets software, services, and hardware. The company also specializes in AI-powered cloud, productivity, and business solutions.
4. NIKE, Inc. (NYSE:NKE)
Average Price Target Upside Potential According to Analysts: 21.54%
Number of Hedge Fund Holders: 81
NIKE, Inc. (NYSE:NKE) is one of the best Dow stocks to buy according to Wall Street analysts. On October 14, BTIG initiated coverage on NIKE, Inc. (NYSE:NKE), giving the stock a Buy rating and setting the price target at $100.
The firm named NIKE, Inc. (NYSE:NKE) as its top pick for 2026. BTIG said that the company has made solid progress in its recovery. However, the firm also noted that NIKE, Inc. (NYSE:NKE) still has a lot of work to do.
BTIG expects the company’s EPS to reach $1.70 for fiscal year 2026 and $2.75 for fiscal year 2027.
The research firm is confident that in the long term, NIKE, Inc. (NYSE:NKE) can go back to operating margins above 12%. BTIG also estimates that the company’s EPS could reach around $3.50 in fiscal year 2028 as the recovery continues.
NIKE, Inc. (NYSE:NKE) is an American multinational company that designs, manufactures, and markets athletic footwear, apparel, equipment, and accessories under its Nike, Converse, and Jordan brands.
3. Verizon Communications Inc. (NYSE:VZ)
Average Price Target Upside Potential According to Analysts: 22.36%
Number of Hedge Fund Holders: 71
Verizon Communications Inc. (NYSE:VZ) is one of the best Dow stocks to buy according to Wall Street analysts. On October 8, Verizon Communications Inc. (NYSE:VZ) reported that it has agreed to acquire Starry, a provider of next-generation fixed wireless broadband services.
This transaction will help Verizon Communications Inc. (NYSE:VZ) offer high-speed internet to multi-dwelling units (MDUs) and urban communities as it will be able to utilize Starry’s advanced millimeter wave technology and market presence.
According to the report, Verizon Communications Inc. (NYSE:VZ) is in a strong position to expand this service as it has a large fiber network and extensive holdings of mmWave spectrum. These are important for delivering ultra-fast speeds and the high capacity needed to serve crowded urban places and apartment complexes.
Starry serves almost 100,000 MDU customers in Boston, New York, Los Angeles, Denver, and Washington, DC. Starry’s MDU network gives Verizon Communications Inc. (NYSE:VZ) a solid opportunity to grow its fixed wireless access (FWA) footprint. The company expects to close this acquisition by the first quarter of 2026.
Verizon Communications Inc. (NYSE:VZ) is an American technology and telecommunications company that provides network connectivity, entertainment, and security solutions.
2. The Walt Disney Company (NYSE:DIS)
Average Price Target Upside Potential According to Analysts: 24.46%
Number of Hedge Fund Holders: 111
The Walt Disney Company (NYSE:DIS) is one of the best Dow stocks to buy according to Wall Street analysts. On October 20, TipRanks reported that Mizuho Securities reiterated a Buy rating on The Walt Disney Company (NYSE:DIS) and increased its price target from $140 to $145.
On the same day, Citi also increased its price target from $140 to $145 for The Walt Disney Company (NYSE:DIS) and kept a Buy rating.
Citi’s analyst Jason Bazinet expects investors will be looking closely at the company’s streaming results and trends in the experiences division. The firm’s estimates for the fourth fiscal quarter are close to the consensus estimates. The Walt Disney Company (NYSE:DIS) is set to release its fiscal Q4 results on November 13.
The Walt Disney Company (NYSE:DIS) is an American multinational mass media and entertainment conglomerate that operates through 3 core business segments: Disney Entertainment, ESPN, and Disney Experiences.
1. Salesforce, Inc. (NYSE:CRM)
Average Price Target Upside Potential According to Analysts: 29.50%
Number of Hedge Fund Holders: 121
Salesforce, Inc. (NYSE:CRM) is one of the best Dow stocks to buy according to Wall Street analysts. On October 14, Salesforce, Inc. (NYSE:CRM) announced an expanded partnership with OpenAI to create new and improved experiences for employees and consumers.
These new experiences will utilize Salesforce, Inc.’s (NYSE:CRM) Agentforce 360 platform and OpenAI frontier models to offer unified experiences across both platforms.
According to the report by Salesforce, Inc. (NYSE:CRM), this partnership will allow companies to use Agentforce 360 right inside ChatGPT. This means they will be able to ask questions about sales records, review customer conversations, or create Tableau visualizations just by typing a query into ChatGPT.
The users will also be able to use OpenAI’s latest frontier models, such as GPT-5, to develop AI agents and prompts within the Salesforce Platform.
Additionally, a new commerce experience will allow customers to sell their products to millions of ChatGPT users in the US while also still having full control of their processes, data, and customer relationships.
Salesforce, Inc. (NYSE:CRM) is a leading American AI cloud-based software company that specializes in customer relationship management (CRM) solutions. The company offers software, tools, services, and applications for sales, customer service, marketing, e-commerce, and analytics.
While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has a 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Best American AI Stocks to Buy According to Analysts and 11 Dirt Cheap Stocks to Buy According to Analysts.
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