12 Best Dow Stocks to Invest In Right Now

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.

9. Walmart Inc. (NASDAQ:WMT)

Number of Hedge Fund Holders: 99

Based on a report released on June 29, Morgan Stanley analyst Simeon Gutman maintained a Buy rating on Walmart Inc. (NASDAQ:WMT) along with the price target of $140. The firm’s price target implies an additional 25% upside from here on. This upside is equal to the median Wall Street analysts’ upside estimate, based on 45 analysts covering the stock.

On July 2, Walmart Inc. (NASDAQ:WMT) announced that it will hold its annual Walmart Wellness Day on July 25. The company said the event will offer free health screenings and assessments, along with low-cost immunizations, vision screenings, and pharmacist consultations at stores across the U.S. Though the event looks irrelevant from a shareholder’s perspective, it is part of the company’s expansion plans in telehealth. It comes after the company partnered with Teledoc in May, a virtual healthcare provider, to offer health services within Walmart stores.

The event will provide customers with weight management resources, including education on GLP-1 medications, medication support, information on same-day pharmacy delivery, nutrition guidance, and access to virtual healthcare services through its Better Care Services platform. By promoting awareness, Walmart intends to monetize its foot traffic via Teledoc’s services, a new growth avenue for the company.

Walmart Inc. (NASDAQ:WMT) is an omnichannel retailer operating retail and wholesale stores, clubs, e-commerce websites, and mobile applications. It offers an elaborate array of items, from general merchandise and electronics to food, groceries, and more.

8. Salesforce Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 101

Salesforce Inc. (NYSE:CRM) started July on a positive note. The stock rose about 4% in premarket trading after Guggenheim upgraded it from Neutral to Buy. John DiFucci of Guggenheim set a price target of $228, representing an additional 37% upside from here. The firm said concerns that artificial intelligence could significantly hurt Salesforce are overdone. It also believes the stock’s current valuation presents an attractive entry point for investors.

DiFucci and his team remarked:

To be clear, this is not a call that CRM will be a beneficiary of AI, but we don’t believe it will decline as implied in the current valuation.

The comment shows how software stocks have been beaten down this year so far, and analysts have started to spot attractive valuation opportunities. Earlier, on June 23, Anthropic launched Claude Tag, a new feature that brings its AI assistant directly into Salesforce Inc.’s (NYSE:CRM) Slack app. The feature allows Claude to join Slack conversations, complete tasks when prompted, and work across multiple channels. Claude Tag is currently available in Beta for Claude Team and Claude Enterprise. The feature is powered by Claude Opus 4.8. And replaces the earlier Claude in the Slack app that Anthropic launched last year.

Salesforce Inc. (NYSE:CRM) is a global enterprise software company that provides customer relationship management (CRM) and cloud-based business applications across sales, service, marketing, commerce, and data analytics. Its Customer 360 platform, powered by data tools and trusted AI, enables organizations to unify customer data and drive personalized engagement.

7. Chevron Corp (NYSE:CVX)

Number of Hedge Fund Holders: 103

Chevron Corp (NYSE:CVX) is one of the best Dow stocks to invest in right now. On July 2, Biraj Borkhataria from RBC Capital reiterated a Buy rating on the stock. The firm also assigned a target price of $220. The price target reflects a further 30% upside from current levels.

On a more bullish note, just days after announcing an agreement with Microsoft to power a massive West Texas data center for 20 years, the company plans to explore additional data center deals across the US. The company plans to use its natural gas resources and experience in building large energy projects. This is aimed at supporting the growing electricity demand from Big Tech, driven mainly by AI and data centers.

Moreover, the company sees potential for additional projects in West Texas, which is part of the Permian Basin, a major US oil-producing region. It also contains vast natural gas resources, Jeff Gustavson, the company’s president of new energies, told Reuters in an interview. On a more positive front, CVX plans to expand into other regions, including the Midwest and the Gulf Coast, which are major energy production and shipping hubs.

While highlighting the company’s expansion plans, Gustavson remarked,

If we can put the right pieces together to ​meet our return thresholds, you ​can see more announcements ⁠over time.

Chevron Corporation (NYSE:CVX) operates as a fully integrated energy company, producing crude oil and natural gas, manufacturing fuels, lubricants, and petrochemicals, and developing technologies to improve efficiency across its operations and the broader energy industry.

6. Walt Disney Co (NYSE:DIS)

Number of Hedge Fund Holders: 119

On July 2, Ric Prentiss, an analyst at Raymond James, lowered the firm’s price target on Walt Disney Co (NYSE:DIS) to $111 from $119 and kept an Outperform rating on the stock. The firm cited survey data, industry checks, and recent Comcast commentary that indicate softer theme park attendance and weaker summer demand.

Despite the downward revision to the price target, Disney saw strong momentum over the July 4 holiday, providing DIS investors with renewed reasons for optimism. The new movie Toy Story 5 was expected to make around $35 million in the US during the July 4 holiday weekend. It is also performing well in cinemas worldwide, earning about $615 million so far. This shows Disney is seeing strong success in theatres again after relying heavily on streaming during the pandemic years.

At the same time, the entertainment giant’s theme parks are extremely busy, with places like Magic Kingdom and EPCOT close to full capacity. The parks had to turn away large groups because of high demand during the US 250th anniversary celebrations.

Walt Disney Co (NYSE:DIS) is a global entertainment and media company.  It owns and operates television networks, streaming services, theme parks, resorts, and hotels. It also produces and releases movies, TV shows, and other content. The company operates through three main segments. These include Disney Entertainment, ESPN, and Disney Parks, Experiences and Products. It was founded by Walter Elias Disney on October 16, 1923, and is headquartered in Burbank, California.

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