In this article, we will be taking a look at the 10 Most Undervalued Dow Stocks to Buy Now.
The Dow Jones Industrial Average was established on May 26, 1896, as a straightforward benchmark to monitor market performance by author Charles Dow, who is a co-founder of Dow Jones & Co. and The Wall Street Journal. Compared to the 30 companies it currently represents, the index started with just 12 companies, which is a far smaller and more industrial-focused portfolio.
It had a very turbulent early history. In August 1896, just a few months after its creation, the index had already fallen by more than thirty percent. This came about as a result of the political unrest and market turbulence surrounding William McKinley and William Jennings Bryan’s 1896 U.S. presidential contest, especially the disputes over the gold standard.
The Great Depression was the Dow’s worst long-term test. It fell more than 90% from its peak in 1929 to 41.22% in July 1932, which means it almost erased more than thirty years of gains. The index recovered slowly, and it wasn’t until the mid-1950s that it surpassed its pre-crash peak.
A similar tendency was also discovered during the 2008 financial crisis. From its top of 14,165.53 on October 9, 2007, the Dow dropped more than 54% to an intraday low of 6,547.05. Only on March 5, 2013, 1,004 trading days after the 2009 low, did the index close at its prior high of 14,253.77.
The mood of the market has considerably improved in recent times. Gains in banking and energy stocks helped the Dow hit a new all-time high on January 5, rising 1.23% to 48,977.18. The index increased 12.97% in 2025, closing December up 0.7%. This was the indicator’s eighth consecutive monthly gain since 2018.
Even though there were occasional crises, the Dow has continuously produced long-term returns. It climbed by 12.1% on average between June 2015 and June 2025, while the S&P 500 and Nasdaq Composite increased by 13.6% and 15.2%, respectively. The Dow has traditionally shown incredible durability during downturns while still contributing to long term market growth, even in challenging years like 2022, when it fell 8.9% compared to -19% for the S&P 500 and -33% for the Nasdaq.
With that said, let’s now take a look at the most undervalued stocks.
Our Methodology
For our methodology, we screened for Dow stocks with a P/E below 21 and positive upside. From this filtered list, we limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Here is our list of the 10 most undervalued Dow stocks to buy now.
10. Amgen Inc. (NASDAQ:AMGN)
Amgen Inc. (NASDAQ:AMGN) is one of the most undervalued stocks on this list.
TheFly reported on April 9 that Guggenheim increased its price target on AMGN from $347 to $351 while maintaining a Neutral rating on the stock. The firm noted that it is updating its financial model ahead of the company’s first-quarter results, which are expected after market close on April 30.
In a separate movement, on April 6, Amgen Inc. (NASDAQ:AMGN) announced positive topline Phase 3 results for TEPEZZA delivered through a subcutaneous on-body injector in patients with moderate-to-severe active thyroid eye disease. The study achieved its primary endpoint, showing a 77% proptosis response rate compared with 19.6% for placebo over 24 weeks, with a mean eye bulge reduction of -3.17 mm versus -0.80 mm.
The trial also met multiple secondary endpoints, including improvements in diplopia outcomes, disease activity scores, quality-of-life measures, and overall responder rates, with statistically significant benefits across most measures. Safety findings were consistent with the known intravenous formulation profile, with mainly mild-to-moderate injection site reactions and no treatment discontinuations. The subcutaneous delivery system demonstrated comparable efficacy to the established IV formulation, offering a more convenient administration option while maintaining strong clinical performance in a condition that can significantly impair vision and daily functioning.
Amgen Inc. (NASDAQ:AMGN) is a leading global biotechnology company focused on developing innovative human therapeutics. It specializes in treatments for oncology, cardiovascular disease, inflammation, bone health, and rare diseases, using advanced biologics and genetic science to address serious illnesses worldwide.
9. The Goldman Sachs Group, Inc. (NYSE:GS)
The Goldman Sachs Group, Inc. (NYSE:GS) is among the most undervalued Dow stocks on this list.
TheFly reported on April 14 that BofA Securities reduced its price target on GS from $1,100 to $1,050 while maintaining a Buy rating. The firm described first-quarter results as strong but noted that elevated market expectations weighed on investor reaction. It also pointed to several aspects of the quarterly update that may cause investors to pause before increasing exposure, as attention shifts to upcoming results from peer banks. Following the earnings release, the firm adjusted its earnings estimates for the next several quarters and fiscal 2027 downward by 2% to 3%, citing slower anticipated revenue growth.
Additionally, on April 13, The Goldman Sachs Group, Inc. (NYSE:GS) CEO David Solomon told analysts that the firm is closely monitoring Anthropic’s Mythos AI model and is working with the company to strengthen cybersecurity defenses. He emphasized awareness of rapidly advancing large language models and their increasing technical capabilities, particularly in identifying and exploiting software vulnerabilities.
GS noted it has access to the Claude system and is collaborating with Anthropic and security partners to integrate frontier AI capabilities while enhancing cyber and infrastructure resilience. The discussion followed heightened attention from U.S. regulators and industry groups regarding potential cybersecurity risks posed by advanced AI systems.
The Goldman Sachs Group, Inc. (NYSE:GS) is a global investment banking, securities, and asset management firm founded in 1869 and based in New York City. It serves corporations, governments, and individuals through banking, markets, wealth management, and platform solutions.
