In this article, we will be taking a look at the 10 Most Undervalued Dow Stocks to Buy According to Wall Street Analysts.
The Dow Jones Industrial Average (DJIA) was established on May 26, 1896, by Charles Dow, co-founder of Dow Jones & Co. and The Wall Street Journal, as a simple benchmark for tracking the U.S. stock market. The index began with just 12 industrial companies, compared with the 30 blue-chip companies it represents today.
Its early years were marked by sharp volatility. In August 1896, only months after its launch, the Dow had already fallen by more than 30% amid political uncertainty surrounding the 1896 U.S. presidential election between William McKinley and William Jennings Bryan, particularly the debate over the gold standard. The index faced an even greater challenge during the Great Depression, plunging more than 90% from its 1929 peak to 41.22 in July 1932, wiping out more than three decades of gains before finally reclaiming its previous high in the mid-1950s.
History repeated itself during the 2008 financial crisis, when the Dow tumbled more than 54% from 14,165.53 on October 9, 2007, to an intraday low of 6,547.05. It took 1,004 trading days before the index closed above its previous high of 14,253.77 on March 5, 2013.
Despite these setbacks, the Dow has consistently demonstrated long-term resilience. It gained an average of 12.1% between June 2015 and June 2025, compared with 13.6% for the S&P 500 and 15.2% for the Nasdaq Composite. Even in 2022, when markets struggled, the Dow declined 8.9%, outperforming the S&P 500 (-19%) and Nasdaq (-33%). Investor sentiment strengthened further as the index rose 12.97% in 2025, closed December up 0.7%, and recorded its eighth consecutive monthly gain since 2018. On January 5, it reached a then-record 48,977.18, before closing above 50,000 for the first time on February 6, 2026.
On April 15, Hamish Preston, head of U.S. equities at S&P Dow Jones Indices, said the milestone highlighted the Dow’s enduring role as a barometer of the U.S. equity market. The index crossed 40,000 less than two years earlier, underscoring the accelerating pace of market gains. Since 1896, it has undergone 136 constituent changes, expanded to 30 stocks by 1928, and, as of January 2026, companies remained in the index for an average of 25 years. S&P Dow Jones Indices also said the Dow tracked about $115 billion in indexed assets and more than $8 trillion in equivalent trading volume in 2024, with Preston noting that new additions accounted for more than half of the advance from 40,000 to 50,000, reflecting the index’s evolving sector composition while maintaining its emphasis on financials and industrials.
With that said, let’s now take a look at the most undervalued stocks.
Our Methodology
For our methodology, we screened Dow Jones Industrial Average stocks with forward P/E ratios below 26 and positive analyst upside. From this pool, we selected companies with the most recent news and developments, then ranked them in ascending order based on their analyst price target upside as of June 30.
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).
Here is our list of the 10 most undervalued Dow stocks to buy according to Wall Street analysts.
10. JPMorgan Chase & Co. (NYSE:JPM)
Price Target Upside: 5.66%
P/E Ratio: 14.67
JPMorgan Chase & Co. (NYSE:JPM) is among the most undervalued stocks.
TheFly reported on June 29 that Morgan Stanley increased its price target for JPM to $362 from $336 while maintaining an Equal Weight rating on the shares. The firm stated that it remains constructive on the banking sector ahead of the upcoming earnings season, citing continued strengthening in revenue trends despite the group’s strong quarter-to-date share price performance.
Moreover, today, on June 30, Dow Jones reported that Jamie Dimon is expanding JPMorgan Chase & Co. (NYSE:JPM)’s involvement in the defense sector by allocating the bank’s own capital to equity investments in defense-related companies. While the bank has historically supported the industry through lending and advisory services, it is now broadening its strategy to include direct ownership stakes. Dimon recently stated that JPM plans to commit $10 billion of its capital to invest in businesses the bank considers essential to U.S. national security and economic resilience. The initiative reflects a broader focus on supporting industries viewed as strategically important while complementing the bank’s existing relationships with companies operating in the defense and critical infrastructure sectors.
JPMorgan Chase & Co. (NYSE:JPM) is the largest U.S. bank by assets and a global financial services firm providing banking, investment, and financial solutions worldwide.
9. American Express Company (NYSE:AXP)
Price Target Upside: 8.43%
P/E Ratio: 19.30
American Express Company (NYSE:AXP) is among the most undervalued stocks.
TheFly reported on June 30 that BTIG increased its price target for AXP to $324 from $285 while maintaining a Sell rating on the shares. The firm updated its forecasts and valuation targets across the specialty finance sector ahead of the second-quarter earnings season. BTIG noted that the revised targets reflect its expectations for where the stocks could trade by June 2027. The firm also highlighted that earnings potential for several companies in the group could improve as inflation uncertainty declines and expectations around Federal Reserve interest rate decisions become clearer.
In a separate move, on June 25, American Express Company (NYSE:AXP) announced results from its company-run 2026 Dodd-Frank Act Stress Test, confirming that the company will maintain its current Stress Capital Buffer requirement of 2.5% through September 30, 2027. The company stated that the results demonstrate the strength of its balance sheet and business model while supporting its capital management strategy. AXP also confirmed its previously announced 16% increase in its quarterly common stock dividend to $0.95 per share beginning with the first-quarter 2026 dividend. Over the 12 months ended March 31, 2026, the company returned $8.7 billion to shareholders through share repurchases and dividends.
American Express Company (NYSE:AXP) is a global financial services company providing payment cards, travel services, and merchant solutions through one of the world’s largest payment networks.
