In this article, we will take a look at the 5 Best Dow Stocks to Invest In Now. For a deeper discussion and analysis, read 10 Best Dow Stocks to Invest In Now.
5. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 104
Johnson & Johnson (NYSE:JNJ) is one of the best Dow stocks to invest in.
On April 20, Guggenheim Partners raised its price recommendation on Johnson & Johnson (NYSE:JNJ) to $266 from $244. It reiterated a Buy rating on the shares. The firm updated its model after the company’s Q1 earnings and took a closer look at the Icotyde opportunity following its approval in plaque psoriasis last month. It now sees higher potential from the drug, raising its unadjusted peak revenue estimate to $14.9 billion from about $10 billion, the analyst noted.
During the Q1 2026 earnings call, Vice President of Investor Relations Darren Snellgrove said worldwide sales reached $24.1 billion for the quarter. He also reported net earnings of $5.2 billion, with diluted EPS at $2.14 and adjusted diluted EPS at $2.70.
Executive Vice President and CFO Joseph Wolk said the company ended the quarter with around $22 billion in cash and marketable securities, along with $55 billion in debt. He added that free cash flow came in at about $1.5 billion for the quarter. The board also approved a 3.1% increase in the annual dividend, bringing it to $5.36 per share.
Johnson & Johnson (NYSE:JNJ) operates across the healthcare sector, focusing on the research, development, manufacturing, and sale of a wide range of products. Its business is organized into two segments: Innovative Medicine and MedTech.
4. Walmart Inc. (NASDAQ:WMT)
Number of Hedge Fund Holders: 114
On April 15, Reuters reported that Walmart Inc. (NASDAQ:WMT) is redesigning its private-label brand “Great Value” as more shoppers shift toward lower-priced store brands. The brand, first introduced in 1993, will see changes across nearly 10,000 food and consumables items. Walmart said this is its first major refresh of the brand in more than a decade.
The rollout will take place over two years. It will start with salty snacks and then expand gradually across other categories. The updated packaging will include clearer nutritional information and benefit claims across all “Great Value” food items. Scott Morris, senior vice president of private brands at Walmart US, said the refresh will not affect the products themselves or their pricing.
The redesign follows an earlier move by Walmart to remove synthetic dyes from its private-label foods, including Great Value, by January 2027. The change reflects shifting consumer preferences, influenced in part by the growing use of GLP-1 weight-loss drugs.
Walmart Inc. (NASDAQ:WMT) operates as a technology-driven omnichannel retailer. The company runs retail and wholesale stores, clubs, eCommerce platforms, and mobile apps across the US, Africa, Canada, Central America, Chile, China, India, and Mexico.
3. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 145
UnitedHealth Group Incorporated (NYSE:UNH) is among the best Dow stocks to invest in.
On April 20, Jefferies raised its price recommendation on UnitedHealth Group Incorporated (NYSE:UNH) to $373 from $340. It reiterated a Buy rating on the shares. The firm updated its estimates across managed care names after taking a closer look at health insurance plans offered on the Health Insurance Exchange.
On April 17, Morgan Stanley named UnitedHealth as a Top Pick. The firm told investors that this “is not necessarily a call on the quarter, but a call on what should be a string of clean quarters that should drive incremental enthusiasm.” It also sees potential for “meaningful upside” to FY27 Street estimates, supported by a more favorable Final Medicare Advantage rate. Morgan Stanley maintained an Overweight rating and set a $375 price target on the shares.
UnitedHealth Group Incorporated (NYSE:UNH) operates as a healthcare and well-being company. Its segments include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare, which covers Employer & Individual, Medicare & Retirement, and Community & State markets.
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 169
According to a report by CNBC on April 20, Apple Inc. (NASDAQ:AAPL) is preparing for a leadership change, with Tim Cook set to step down as CEO and transition to executive chairman on September 1. The company said John Ternus, its senior vice president of hardware engineering, will take over as CEO and join the board. Arthur Levinson is expected to become the lead independent director. Cook will remain in the CEO role through the summer to help manage the handover.
This will be Apple’s first CEO transition since Cook replaced Steve Jobs in 2011. Over that period, the company’s market value expanded more than 20-fold, reaching $4 trillion. Apple also said Johny Srouji will take on a broader role as chief hardware officer, stepping into Ternus’s responsibilities. Cook made the following statement:
“It has been the greatest privilege of my life to be the CEO of Apple and to have been trusted to lead such an extraordinary company. I love Apple with all of my being, and I am so grateful to have had the opportunity to work with a team of such ingenious, innovative, creative, and deeply caring people who have been unwavering in their dedication to enriching the lives of our customers and creating the best products and services in the world.”
The transition comes as Apple deals with supply chain pressure, geopolitical risks, tariffs, and rising demand for AI-related hardware.
Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories, and also provides a range of related services.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 381
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best Dow stocks to invest in.
On April 20, Bank of America raised its price recommendation on Amazon.com, Inc. (NASDAQ:AMZN) to $298 from $275. It reiterated a Buy rating on the shares. Ahead of the company’s Q1 report scheduled for April 29, the firm now expects revenue of $178.4 billion and EBIT of $21.4 billion. That sits above Street estimates of $177.1 billion and $20.7 billion, the analyst said in a preview note. The firm also lifted its year-over-year AWS growth estimate to 28%, compared to the Street at 25%. It added that expectations could reach as high as 29%.
Also on April 20, CNBC reported that Amazon has agreed to invest up to $25 billion in Anthropic, adding to the $8 billion it has already invested in the artificial intelligence startup. The expanded agreement is focused on building out AI infrastructure.
Anthropic said it plans to spend more than $100 billion on Amazon Web Services over the next 10 years. This includes current and future versions of Trainium, Amazon’s custom AI chips. The company also said it has secured up to 5 gigawatts of capacity to train and run its Claude AI models.
Amazon’s investment includes $5 billion upfront, with up to $20 billion more tied to certain commercial milestones, according to the release. The initial investment is based on Anthropic’s latest valuation of $380 billion.
Amazon.com, Inc. (NASDAQ:AMZN) offers a wide range of products and services. Its retail platform includes items it buys for resale, along with products sold by third-party merchants.
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.
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