The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well.
It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends.
We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year.
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Methodology
In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest.
We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
30. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 60
Short Interest as of Apr 30, 2025: 2.27%
International Business Machines Corporation is an integrated solutions and services provider. The company operates in Infrastructure, Software, and Financing segments. The company is among the top 5 most shorted stocks on the Dow.
To accelerate manufacturing and technology innovation, the tech giant plans to invest $150 billion during the next five years in the US. As part of this investment, more than $30 billion will be allocated to research and development to improve the manufacturing of mainframe and quantum computers in America.
IBM’s CEO Arvind Krishna said on the occasion:
“We have been focused on American jobs and manufacturing since our founding 114 years ago, and with this investment and manufacturing commitment we are ensuring that IBM remains the epicenter of the world’s most advanced computing and AI capabilities.”
Due to the potential negative effects of the U.S. Department of Government Efficiency (DOGE), the company highlighted concerns about its Consulting business over the next few months. CEO Arvind Krishna mentioned that this segment could be at serious risk if discretionary spending cuts are initiated by DOGE.
Despite reporting better-than-expected first-quarter results, the company’s shares fell 5%. Management reiterated its full-year guidance reflecting 5% revenue growth along with the free cash flow generation of $13.5 billion.
29. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 73
Short Interest as of Apr 30, 2025: 4.35%
NIKE, Inc. operates as a developer, designer, marketer, and seller of apparel, athletic footwear, accessories, equipment, and services. Following President Donald Trump’s social media post about a productive call with Vietnam’s leaders on trade restrictions, the company’s shares surged around 4.5%.
However, NKE is the most shorted stock on the Dow with a short interest of 4.35%. It has lost over one-third of its value in the last year, with the company management lobbying to get an exemption from tariffs to protect American consumers.
There is reason to believe that an exemption may be on the cards. Earlier in April, Trump was approached by the Vietnamese authorities and this was how he responded:
“Just had a very productive call with To Lam, General Secretary of the Communist Party of Vietnam, who told me that Vietnam wants to cut their tariffs down to ZERO if they are able to make an agreement with the U.S. I thanked him on behalf of our country and said I look forward to a meeting in the near future.”
In partnership with Kim Kardashian’s SKIMS, the athletic apparel giant is preparing to launch a new brand. The firm is organizing a team of designers and executives for the launch of a new spring collection. The NikeSkims project will include footwear, training apparel, and accessories, aiming for global expansion in 2026.
NIKE has recently announced another partnership with Ja Morant and Kraft-Heinz’s Kool-Aid brand. This deal aims to launch a new shoe collaboration, the Nike x Kool-Aid Ja 2. This partnership blends nostalgia, creativity, and sneaker culture, highlighting Ja’s personality.
28. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 72
Short Interest as of Apr 30, 2025: 2.71%
Amgen Inc. operates as a manufacturer, developer, discoverer, and deliverer of human therapeutics. Its key product candidates are Enbrel, XGEVA, Otezla, KYPROLIS, Prolia, Repatha, Nplate, Aranesp, EVENITY, Vectibix, BLINCYTO, and others. It serves dialysis centers, pharmacies, hospitals, and physicians.
The firm recently announced plans to invest an additional $900 million to expand its Ohio biotech manufacturing facility. According to Bloomberg’s report, this expansion will create hundreds of new jobs. This move will help the company to improve its global biomanufacturing network.
Chairman and CEO at Amgen, Robert A. Bradway commented:
“Amgen has been a leading U.S.-based manufacturer of biologic medicines since 1988. Today’s investment reinforces our ongoing commitment to expanding U.S. manufacturing and ensuring patients around the world have access to our innovative medicines. Ohio offers a supportive business climate, skilled workforce, and strategic location, making it an ideal choice for this next phase of our investment.”
At the start of this month, the firm received an expanded FDA label approval for Uplizna. The FDA has approved it as the first treatment for Immunoglobulin G4-related disease (IgG4-RD) for adults. This approval is based on the late-stage clinical trial results indicating that Uplizna reduced the risk of disease reactivation by 87%.
27. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 62
Short Interest as of Apr 30, 2025: 1.66%
Caterpillar Inc. is a manufacturer and seller of mining and construction equipment, industrial gas turbines, off-highway diesel and natural gas engines, and diesel-electric locomotives.
Citing concerns over economic risks from increasing macro uncertainty and recent tariffs, UBS analyst Steven Fisher downgraded some major building materials and machinery stocks recently, including CAT. He downgraded the company from Neutral to Sell and mentioned that tariffs might lead to margin compression by potentially increasing costs and reducing demand.
The analyst highlighted the risk by saying:
“We think there’s more earnings downside for machinery companies related to macroeconomic headwinds that is not yet priced in, despite the pullbacks in the stocks to date.”
As per the guidance, the management anticipates a slight decline in revenues and sales in 2025. Tariffs could add as much as $350 million to the company’s costs. CAT is known as an industry leader in profitability, with EBITDA margins maintaining around 15% even during downturns. The management has already stated in the Q1 earnings call that it is considering measures to reduce the impact of tariffs and maintain profitability.
26. The Travelers Companies, Inc. (NYSE:TRV)
Number of Hedge Fund Holders: 52
Short Interest as of Apr 30, 2025: 1.42%
The Travelers Companies, Inc. is a personal and commercial property and casualty insurance services and products provider to associations, businesses, individuals, and government units. The company recently received back-to-back upgrades from analysts, making it a great start to the year.
The insurance company first earned an upgrade from Piper Sandler right after the solid Q4 earnings. Analysts noted that the stock was inexpensive and upgraded it from Neutral to Overweight with a raised price target of $310. Analysts Paul Newsome and Cam Bianchi favorably viewed its faster-than-expected recovery of personal lines profitability and sustainable margins in commercial lines.
Following the same optimistic sentiment, Keefe, Bruyette & Woods also upgraded the insurer from Market Perform to Outperform. The firm pointed out a potential $1.39 billion overestimation of its 2024 loss reserves. Additionally, KBW increased its 2025 reserve release estimates from $315 million to $392 million, which raises its EPS estimates as well.
Based on a more positive outlook of its reserves, Wells Fargo recently upgraded the stock from Underweight to Equal Weight. Wells Fargo’s concerns regarding catastrophe losses were mitigated by the company’s outlook and reinsurance coverage.
Analyst Elyse Greenspan stated:
“We had a more favorable view when looking at both its GAAP and stat reserves resulting in our upgrade of the shares.”
25. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 67
Short Interest as of Apr 30, 2025: 1.61%
McDonald’s Corporation is an operator, owner, and franchisor of restaurants. It operates under the McDonald’s brand name. The company is treating its customers to a new item, the first permanent menu item addition in four years: the McCrispy Strips. These chicken tenders boast a black pepper flavor that has both franchisees and customers excited!
The company announced its quarterly earnings last week, though it didn’t feature the month of April, which has seen a notable improvement in sales. The promotion of the Minecraft movie drove more families to the restaurants, which further boosted numbers. Going ahead, sales improvement may not be that big a headache due to the comparison with lower sales last year.
The management confirmed in the Q1 earnings that the 2025 projections provided at the last earnings call in February remained intact. There could be a possible foreign exchange tailwind as well.
The stock has recovered well from the tariff-induced crash earlier in April and is now closing in on its 52-week highs as earnings approach. An earnings beat could send the stock higher as the outlook already looks promising enough for the restaurant chain.
24. The Sherwin-Williams Company (NYSE:SHW)
Number of Hedge Fund Holders: 74
Short Interest as of Apr 30, 2025: 2.04%
The Sherwin-Williams Company is the manufacturer, developer, distributor, and seller of coatings, paint, and related products. Citing potential weakness in the housing market, analysts at financial services firm Jefferies downgraded the company from Buy to Hold last month, lowering the price target from $423 to $380.
SHW is expected to face headwinds in the first half of 2025. However, KeyBanc Securities’ analyst Aleksey Yefremov anticipates SHW to gain in the latter half of 2025 on the back of the declining raw material costs.
The stock surged 3% right after reporting better-than-expected Q1 earnings. Despite a total sales decline, the company managed to improve its earnings, driven by disciplined cost management and enhanced margins.
Sherwin-Williams also reiterated its full-year 2025 guidance regardless of economic and global supply chain uncertainties. It expects consolidated sales to grow by a low single-digit percentage. Adjusted full-year EPS is anticipated to be in the range of $11.65 to $12.05.
CEO Heidi Petz minimized the potential tariff impact by highlighting:
“The largest portion of our revenue is in the United States, and the majority of our raw materials are sourced in the regions where we manufacture. This regional supply strategy helps shield the company from global trade disruptions and inflationary pressure stemming from tariffs.”
23. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 74
Short Interest as of Apr 30, 2025: 1.89%
Verizon Communications Inc. is a technology, entertainment, communications, and information products and services provider. Evercore ISI recently upgraded the company from In Line to Outperform with an increased price target of $48. The research firm also highlighted VZ as its top pick in the wireless sector. Evercore is bullish on Verizon’s growth potential and broadband strategy.
Evercore mentioned:
“Notwithstanding some potential subscriber volatility, we remain confident in its [Verizon’s] ability to meet its wireless service revenue growth target.”
The company has entered into a partnership with Google Cloud to improve customer service using artificial intelligence technology. This collaboration has delivered impressive results. Thanks to AI, it enhanced customer service query quality by 95% and raised sales by around 40%.
Sampath Sowmyanarayan, CEO of Verizon’s consumer group business, mentioned:
“Our collaboration with Google Cloud and the integration of Gemini into our customer care platforms mark a significant advancement in our commitment to providing exceptional customer experiences.”
Heading into 2025, the firm anticipates sustained growth in adjusted EBITDA and wireless service revenue. Management remains confident in improving consumer postpaid phone net adds compared to the previous year.
22. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 81
Short Interest as of Apr 30, 2025: 3.54%
Chevron Corporation is involved in chemicals and integrated energy operations. It generates its revenue through the Downstream and Upstream segments.
The stock has experienced minor volatility as BNP Paribas Exane recently downgraded it from Outperform to Neutral and decreased its price target to $140. The bank lowered its price target, citing the company’s significant exposure to oil operations, as it is cautious about the oil price outlook for the next 12 to 18 months.
On the flip side, the natural gas business is poised to be a growth driver for the company. This part of the business has already contributed to its strong financial performance. It profited from higher natural gas price realization, specifically in international markets. Currently, natural gas is priced at $3.53, demonstrating an 84% rise from the previous year’s gas price.
Increasing demand for data centers is likely to increase natural gas prices and demand further. Data centers currently account for 3% of the global electricity supply. By 2030, the number of data centers is anticipated to increase from 6,111 to over 8,000. As these power-hungry installations rely strongly on electricity, and 43% of electricity is generated from natural gas, the demand is likely to stay elevated.
21. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 79
Short Interest as of Apr 30, 2025: 1.91%
3M Company operates as a diversified technology services provider. The company generates revenue through Consumer, Transportation and Electronics, and Safety and Industrial segments.
MMM started 2025 with a bullish outlook as analysts at financial services firm Wells Fargo upgraded it from Equal Weight to Overweight. Wells Fargo also increased the price target from $140 to $170, pointing out that the company was well-positioned to improve profit margins and continue share buybacks.
Joseph O’Dea, an analyst at Wells Fargo, said:
“After the largest restructuring program in 3M’s history, there’s still a significant cost opportunity ahead to drive better operational execution. If demand accelerates, 3M will benefit and cost out will drive strong incrementals. But if demand underwhelms, earnings growth potential remains attractive at 3M.”
Looking ahead to 2025, the company reaffirmed its FY 2025 outlook regardless of macroeconomic uncertainties. Management anticipates adjusted EPS ranging between $7.60 to $7.9. Backed by a $7.5 billion authorization, CEO Bill Brown announced plans to buy back $2 billion in shares in 2025, beating previous estimates of $1.5 billion.
20. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 67
Short Interest as of Apr 30, 2025: 1.29%
Honeywell International Inc. is involved in the building automation, industrial automation, aerospace technologies, and energy and sustainable solutions businesses. On the back of analyst Amit Mehrotra’s confidence in the company, it was recently added to research firm UBS’s top picks list.
The research firm maintained its Buy rating on the stock. Mehrotra highlighted Honeywell’s attractive valuation, confidence in execution, and segment strength and margin recovery as the main factors behind this upgrade.
He further said:
“We are now adding Honeywell to that list due to good management of expectations, encouraging underlying growth and positioning, and a valuation that we view as having meaningful room for improvement.”
The company has recently announced the acquisition of Sundyne, a pump and gas compressor maker, for $2.16 billion. With this acquisition, the firm will improve its offerings in automation and control systems and critical equipment for industries including petrochemicals and oil and gas. This move is a part of Honeywell’s restructuring efforts.
Chairman and CEO Vimal Kapur mentioned:
“By combining Honeywell’s top-tier technology with Sundyne’s leading process industry solutions, this acquisition will further enhance our dynamic Honeywell UOP business and create strategic growth opportunities in attractive verticals.”
19. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 103
Short Interest as of Apr 30, 2025: 2.34%
The Boeing Company operates as a developer, manufacturer, designer, seller, supporter, and service provider of military aircraft, human space flight and launch systems, commercial jetliners, satellites, and missile defense. It generates its revenue through Space & Security, Commercial Airplanes, Global Services, and Defense segments. The stock is up 33% in a month, recovering all the losses triggered by Donald Trump’s tariffs.
The firm entered into a definitive agreement last week with the private equity firm Thoma Bravo. As per the deal, the company will sell a significant portion of its Digital Aviation Solutions business, including navigation unit Jeppesen, to Thoma Bravo for $10.55 billion.
Boeing’s CEO highlighted an optimistic but cautious plan for 2025. With a focus on stable production growth, the management aims to deliver on its production targets. Through the sale of its digital aviation solutions business, it plans to strengthen its balance sheet and use the funds to improve the rest of the business. However, ongoing challenges like potential tariff impacts, specifically with China, are likely to impact deliveries. The company is actively seeking ways to cope with these challenges.
18. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 71
Short Interest as of Apr 30, 2025: 1.19%
American Express Company is an integrated payments company. The company operates in International Card Services, U.S. Consumer Services, Global Merchant and Network Services, and Commercial Services segments. Its products and services consist of charge card, network services, credit card, banking, travel and lifestyle services, and expense management products and services.
The firm recently completed its acquisition of Center, a software company that helps manage expenses for small and medium-sized businesses. This acquisition will merge American Express’ corporate and small business cards with the Center’s expense management technology. With this integration, experiences and value for commercial customers will be improved.
The company has also reaffirmed its full-year guidance for 2025. As per the guidance, management anticipates revenue growth of 8% to 10% along with the EPS ranging between $15 to $15.50. Management highlighted that these estimates assume a peak unemployment rate of 5.7%. CEO Stephen Squeri mentioned that early Q2 spending trends are reflecting first-quarter levels in all spending categories and customer segments. CFO Christophe Le Caillec highlighted consistency in consumer spending trends and credit performance.
17. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 91
Short Interest as of Apr 30, 2025: 1.67%
Merck & Co., Inc. is a healthcare company. It generates its revenues through the Animal Health and Pharmaceutical segments. It provides human health pharmaceuticals for cardiovascular, oncology, neuroscience, diabetes, and other areas.
The company’s new product launches and sustained growth of major therapies like KEYTRUDA continue to drive sales growth. Its favorable product mix and operational efficiency played a significant role in driving profitable growth and margin expansion in the last year.
Heading into 2025, MRK expects full-year revenue to be in the range of $64.1 billion to $65.6 billion. It revised its EPS guidance downward to between $8.82 and $8.97. However, aided by demand recovery and new product launches, management is confident in achieving stronger growth in the latter half of the year.
The company is investing $1 billion in a new biologics facility in Wilmington, Delaware. This facility aims to produce advanced therapies, including Keytruda, MRK’s blockbuster cancer treatment. It will also create approximately 500 full-time jobs and 4,000 construction jobs.
16. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 81
Short Interest as of Apr 30, 2025: 1.38%
The Goldman Sachs Group, Inc. is a financial institution that offers various financial services to financial institutions, individuals, corporations, and governments.
The firm recently released its quarterly earnings and the result helped it provide strong returns in the month of April. The Asset & Wealth Management segment reported revenue growth amounting to $3.7 billion, along with the Private banking and lending revenue growth of 6% year-over-year. The company’s Global Banking & Markets division generated a return on equity of over 20%.
Due to slowing economic growth, the firm anticipates continued uncertainty and market volatility. Goldman Sachs’ economists project a slowdown in US GDP growth from 2% to 0.5%, increasing recession risks. However, they have noticed four quarters of sustained growth in investment banking backlog and increased client activity.
The Asset & Wealth Management segment is expected to maintain high single-digit annual growth in durable revenue streams. Management is optimistic that incorporating AI will result in long-term gains, boosting operational efficiency and productivity.
The company recently announced the appointment of two leaders to its merger and acquisition team in Asia (ex-Japan). Sushil Bathija has been selected as Head of M&A for Asia ex-Japan, and Vikram Chavali has been appointed as Head of Sponsors M&A for Asia ex-Japan. They will collaborate with global and regional leaders to catalyze the success of GS’s M&A business in Asia.
15. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 84
Short Interest as of Apr 30, 2025: 1.49%
Cisco Systems, Inc. is a manufacturer, designer, and seller of Internet Protocol-based networking and other products relevant to the information technology and communications industry. Investment firm Citi recently recommended the stock as its top pick in the hardware space and communications equipment.
At the end of last month, Cisco launched new Webex AI solutions. This launch aims to improve collaboration and customer experience. New Webex AI solutions consist of Webex Calling Customer Assist, new workflow automation solutions for AI Assistant, and new features within Webex Control Hub.
Executive Vice President and Chief Product Officer, Jeetu Patel mentioned:
“Enterprises are starting to realize the potential of agentic AI. It is reinventing what it means for people and technology to work together across the physical and digital worlds.”
As per the company’s provided outlook, it anticipates revenue growth of about 10.2% for Q3, a significant acceleration compared to the previous quarter. However, EPS guidance presents a significant slowdown from the last quarter. Anticipated EPS growth for Q3 is around 3.4% as compared to the previous quarter’s EPS growth of 8%. This blend of acceleration and slowdown indicates strong business activity hampered by margins and profitability challenges.
14. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 81
Short Interest as of Apr 30, 2025: 0.89%
The Coca-Cola Company operates as a beverage company. It engages in the manufacturing and sale of different nonalcoholic beverages. The company was in the spotlight as different analysts reacted favorably to its recently released earnings.
BNP Paribas analyst Kevin Grundy highlighted that the firm has an industry-leading portfolio, improved EPS delivery, and market share momentum, which are the main drivers of its bullish thesis. Wells Fargo analyst Chris Carey believes that the Q1 results should soothe investors’ nerves and boost confidence because of the solid margins, top-line growth fueled by volumes, and early confirmation of reiterated 2025 guidance. Moreover, Morgan Stanley analyst Dara Mohsenian believes the strong results confirm that the company is well-positioned for growth among its peers.
The firm has also updated its 2025 guidance. It expects organic revenue to grow by 5% to 6%, along with the comparable currency-neutral EPS growth of 7% to 9%. However, for the full year, Coca-Cola anticipates currency fluctuations to affect revenue by 2% to 3% and EPS by 5% to 6%. The company plans to prioritize local branding campaigns and focus on affordability to meet consumer needs.
13. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 181
Short Interest as of Apr 30, 2025: 1.53%
Visa Inc. is a payment technology company. It operates a transaction processing network, VisaNet. The company provides debit, credit, and prepaid card products, Visa B2B Connect, Visa Direct, Visa DPS, and Visa Cross-Border Solution.
Despite economic headwinds that have impacted consumer spending, the firm delivered a solid performance. In Q1, it surpassed both revenue and EPS estimates. Visa’s revenue growth was recorded at 10%, along with EPS growth of 14%. This growth was fueled by robust consumer spending for the holidays. As a result of the increased consumer spending, payment volumes grew by 9%.
Visa announced its Q2 earnings last week. A 9% topline growth and a 10% EPS growth mean the company continues its growth story. In the next quarter, things look even better with a low-double-digit revenue growth powering a high-teens growth in the bottom line! Clearly, these are good times to be a Visa investor.
12. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 79
Short Interest as of Apr 30, 2025: 0.74%
The Procter & Gamble Company operates as a branded consumer packaged goods provider. It operates in Health Care, Beauty, Baby, Feminine & Family Care, Grooming, and Fabric & Home Care segments. It offers shampoos, shave products, conditioners, toothbrushes, laundry detergents, baby wipes, and other products.
The firm reported its Q3 earnings last week, demonstrating organic revenue growth of 1%. Volume growth remained flat during the quarter, along with the core EPS growth of 1% YoY. This was due to the weak consumer demand across the US market. Aided by productivity improvement of 280 basis points, the core operating margin went up by 90 basis points.
After the release of quarterly results, management updated its guidance for fiscal year 2025. The firm now expects organic sales growth of approximately 2% for the full year. Core EPS is anticipated to be in a range of 2% to 4%.
Procter & Gamble plans to reach free cash flow generation of 90% in 2025. This outlook contains weak consumption conditions and potential tariff impacts. The company will experience some short-term tariff-related headwinds, but the management expects things to normalize over the next couple of years.
11. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 88
Short Interest as of Apr 30, 2025: 1.02%
The Home Depot, Inc. is a home improvement retailer. It sells different home improvement products, decor products, building materials, and lawn and garden products.
The company’s chief executives recently held a meeting with President Donald Trump to review tariff consequences on the business. The meeting was centered on the potential impacts of broader tariffs on imported goods. According to President Trump, the meeting was productive.
The company shared sentiments about the meeting through a statement:
“We had an informative and constructive meeting with the President and look forward to continuing the dialogue.”
The struggling retail sector will need all the support it can get from the President, who is adamant on tariff measures that may result in inflation.
Investors have also reacted positively to the recent earnings after being impressed by the positive comparable sales growth. After two years of decline, analysts noted it as a significant achievement. Jefferies analyst Jonathan Matuszewski also noted a significant rise in comparable transactions.
Managing director of GlobalData, Neil Saunders, highlighted:
“The fact that US comparable sales are back in the black after declining for eight quarters or two years is a very clear win for Home Depot, and it suggests that the home improvement market as a whole might finally be reaching the nadir of its more sluggish performance.”
Going forward, the company expects total sales growth of 2.8% along with the comparable sales growth of 1%. Operating margin is anticipated to be 13% however, gross margin is projected to be flat.
10. The Walt Disney (NYSE:DIS)
Number of Hedge Fund Holders: 108
Short Interest as of Apr 30, 2025: 1.26%
Walt Disney is an entertainment company. It generates its revenues through the Sports, Entertainment, and Experiences segments.
Earlier in the year, this is how CEO Bob Iger highlighted the company’s 2025 plans:
“Looking to 2025, we have an extremely promising content slate, including Captain America: Brave New World, Lilo & Stitch, The Fantastic Four: First Steps, Zootopia 2, and Avatar: Fire and Ash.”
Since the start of March, the stock had lost over 21% of its value up until the earnings announcement. Now that the stock is up over 10% after comfortably beating estimates and raising guidance, investors have made some of their losses back. The EPS came in at $1.45 against estimates of $1.25, sending the stock soaring in pre-market.
In 2026 and 2027, the company expects double-digit earnings growth. The CEO is planning to integrate Hulu, ESPN, and Disney+ to improve subscriber count and drive customer engagement. The theme park business is also going strong, with Q3 and Q4 bookings already showing promising numbers. The stock’s 3-year-long sideways trend may finally be about to end!
9. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 162
Short Interest as of Apr 30, 2025: 1.33%
Salesforce, Inc. operates as a customer relationship management (CRM) technology provider. It connects customers and companies globally. CRM provides Salesforce Starter, Tableau, Slack, integration and analytics solutions, Agentforce, Industries AI, and Data Cloud.
Investment firm Needham’s analyst Scott Berg maintained its Buy rating on the stock, along with the price target of $400. Analysts presented a bullish outlook by saying that the company’s agent development and improvement are becoming more efficient. Moreover, the investment firm is also impressed by the artificial intelligence agent Agentforce.
Analyst Scott Berg commented:
“The newly released Testing Center and an in-pilot Agent Interaction module will further enhance the AI feedback cycle.”
Bank of America Securities also provided a bullish outlook on the company by reiterating its Buy rating and the target price of $350. In a recession, analysts usually prefer companies like Salesforce due to their enterprise presence, strong free cash flow, and stable business model.
8. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 150
Short Interest as of Apr 30, 2025: 1.27%
UnitedHealth Group Incorporated is a healthcare company. It operates in the Optum Rx, Optum Health, UnitedHealthcare, and Optum Insight segments. The company offers software and information products, consumer-oriented health benefit plans and services, pharmacy care services and programs, wellness and consumer engagement, and others.
The firm’s first-quarter results disappointed investors. It missed Wall Street analysts’ estimates for both revenue and EPS. As a result of this miss, the share price dropped about 22% on the same day. On a positive note, operating margins and operating income improved during the quarter.
Based on this underwhelming performance, management lowered its forward guidance and highlighted some issues. For the first time since the Recession of 2008-2009, EPS growth will be negative even if the company meets analyst expectations. Revenue estimates are still the same, ranging between $450 billion to $455 billion. Going forward, the firm plans to take some key initiatives, including improving the transition to the new CMS risk model and improving member engagement.
7. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 116
Short Interest as of Apr 30, 2025: 1.07%
Walmart Inc. operates wholesale and retail stores and clubs, mobile applications, and e-commerce websites. It generates its revenue through Walmart International, Sam’s Club, and Walmart U.S. segments. The company operates supermarkets, cash and carry stores, supercenters, discount stores, and warehouse clubs.
As per the firm’s provided guidance, it anticipates revenue growth of 3% to 4%. The retail giant reaffirmed its guidance in the recently held Investment Community Meeting. It plans to boost growth by enhancing customer and member experiences.
Walmart Chief Financial Officer John David Rainey wrote:
“History tells us that when we lean into these periods of uncertainty, Walmart emerges on the other side with greater share and a stronger business.”
However, the CFO highlighted declining consumer sentiment and uncertainty around tariffs as some negative catalysts for sales growth in the future. He also pointed out that the e-commerce segment will deliver profitability for the first time during the quarter. The company’s excellent historical performance makes it stand out despite tariff concerns.
6. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 98
Short Interest as of Apr 30, 2025: 0.87%
Johnson & Johnson manufactures, researches, develops, and sells different products in the healthcare field. The company operates in the MedTech and Innovative Medicine segments. JNJ announced a 4.8% raise in the quarterly dividend, demonstrating 63 years of consecutive growth.
The firm reported its latest quarter’s results on 15th April. It grew its revenue by 2.39% and non-GAAP EPS by 2.2% year-on-year, surpassing Wall Street analysts’ estimates. This was all thanks to strong sales growth in both of its segments. Sales growth was recorded at 5.9% in the US, along with global sales reaching $21.9 billion. Due to product mix changes and biosimilar competition, gross margin was affected.
Based on better-than-expected latest quarter earnings, the management guided for an optimistic 2025. As per the guidance, operational sales are anticipated to grow between 3.3% to 4.3%, including the Intra-Cellular acquisition. Aided by pipeline advancements and newly launched products, higher growth is expected in the second half of 2025. Adjusted EPS is projected to be in the range of $10.50 to $10.70.
5. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 123
Short Interest as of Apr 30, 2025: 0.97%
JPMorgan Chase & Co. is a financial services company. The company operates in Asset & Wealth Management, Commercial & Investment Banking, and Consumer & Community Banking segments.
The banking giant recently disclosed that it was planning to expand its presence in San Francisco. As per the announcement, the firm will renovate its local offices at One Front Street and 560 Mission Street. By the end of 2025, the company also plans to open six financial centers throughout the San Francisco Bay Area.
Over a month ago, JPM expanded its multi-year agreement with Affirm. With this partnership, J.P. Morgan Payments’ merchants will gain access to Affirm’s solutions. It will provide customers the opportunity to go through an eligibility check, choose from customized payment options, and select Affirm as a payment method.
After its earnings report, the bank also reiterated its FY 2025 financial guidance. As per the guidance, Net Interest Income (NII) excluding markets is projected to be approximately $90 billion. With the expected card net charge-off rate of about 3.6%, the company’s adjusted expense guidance remains at $95 billion.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
Short Interest as of Apr 30, 2025: 1.12%
NVIDIA Corporation is a technology company that develops graphic processing units (GPUs) and also provides networking and computing solutions. It operates through two main segments: the computing & networking segment and the graphics segment.
The company recently received a sell rating from an investment bank and research firm, Seaport Research Partners, as it started coverage on the stock. The firm also assigned a price target of $100 to the semiconductor company. Goldberg noted that Nvidia’s increasingly complex systems present supply chain challenges.
However, Morgan Stanley increased its estimates for NVDA’s 2026 revenue, citing strong demand for artificial intelligence chips. Analyst Joseph Moore thinks that macro and supply chain risks are not as significant as they appear.
There is also a lot happening on the political front. In order to discuss concerns about Huawei’s growing artificial intelligence technologies, Nvidia’s CEO, Jensen Huang, had a meeting with U.S. lawmakers last month. The meeting discussed how US restrictions on Nvidia’s chips in China and Huawei’s AI chips could strengthen Huawei.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 234
Short Interest as of Apr 30, 2025: 0.75%
Apple Inc. operates as a designer, manufacturer, and marketer of tablets, smartphones, wearables, personal computers, and accessories. The company’s stock is down 18% so far this year.
Over the last few years, Apple has steadily shifted some of its iPhone production from China to India. However, according to The Information report, geopolitical tensions between the two countries have created some challenges. The recent U.S. tariff hike has pressured the company to expand its manufacturing outside of China. India now produces about 20% of AAPL’s iPhones, and the firm is planning to raise its iPhone production by 10% in India in 2025.
Things aren’t going as planned, though. The firm led by Tim Cook is facing some challenges in its efforts to shift production to India. The company tried to move its equipment to initiate iPhone 17 trial production, but the Chinese authorities blocked the transfer of equipment. The firm is taking measures to resolve this issue.
Morgan Stanley mentioned that the company seems to be favored by U.S. consumers despite lagging behind on AI initiatives. Investment firm’s latest AlphaWise survey revealed better-than-expected Apple Intelligence adoption.
Analyst Woodring highlighted:
“While the tariff backdrop creates myriad uncertainties, our March ’25 AlphaWise survey of 3,300 US consumers highlights stronger-than-expected consumer perception for Apple Intelligence, record-high US iPhone upgrade rates, and strong interest in new iPhone form factors.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Short Interest as of Apr 30, 2025: 0.75%
Amazon.com, Inc. is involved in the retail sale of consumer products, subscriptions, and advertising services. The company also sells and manufactures electronic devices.
Despite tariffs and economic uncertainty, artificial intelligence spending remains unaffected as the earnings season begins. According to Wedbush analysts, key hyperscalers like AMZN are well-positioned to gain from this trend. Analysts believe that during a turbulent IT spending backdrop, this investment area is anticipated to provide safety and certainty.
The company also reported strong quarterly earnings but remained cautious on the guidance in an uncertain economic environment. Prior to the earnings, Amazon executives showed confidence that demand for data centers driving artificial intelligence will continue, disregarding concerns that demand will slow down.
At the Hamm Institute for American Energy Conference in Oklahoma City, Amazon’s vice president of Global Data Centers, Kevin Miller said:
“We continue to see very strong demand, and we’re looking both in the next couple years as well as long term and seeing the numbers only going up.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 317
Short Interest as of Apr 30, 2025: 0.70%
Microsoft Corporation operates as a supporter and developer of software, devices and solutions, and services. The company generates its revenue through the Productivity and Business Processes, Intelligent Cloud, and More Personal Computing segments. It sells its products through distributors, digital marketplaces, resellers, retail stores, and OEMs.
Microsoft-backed AI startup OpenAI recently entered into a deal with The Washington Post to merge the newspaper’s content into ChatGPT. According to the deal, the chatbot will provide links, summaries, and quotes to the Washington Post’s original articles while answering relevant questions.
Head of Media Partnerships at OpenAI, Varun Shetty, highlights the purpose of this agreement by saying:
“More than 500 million people use ChatGPT each week to get answers to all kinds of questions. By investing in high-quality journalism by partners like The Washington Post, we’re helping ensure our users get timely, trustworthy information when they need it.”
The firm also surprised analysts with faster growth in cloud compared to its competitors. This growth was largely driven by non-AI products, which means the management continues to execute its business strategies perfectly without solely focusing on AI.
While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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