10 Best Dow Stocks to Buy for 2027

8. UnitedHealth Group (NYSE:UNH)

Number of Hedge Fund Holders: 143

Short Interest: 1.56%

Average Upside Potential: 20%

UnitedHealth’s pitch is a margin repair that is starting to show up in the numbers. Adjusted earnings of $4.69 per share in the third quarter were well above the year-earlier level, on revenue that was essentially flat. The medical care ratio, the share of premiums spent on patient care, fell to 88.4%, which the company tied to medical cost management, pricing discipline and changes to benefit design.

Management responded by raising its full-year adjusted earnings outlook to at least $20.50 per share and reaffirming a long-term growth target of 13% to 16%. UnitedHealthcare expects Medicare Advantage margins near the top of its range this year, and executives described 2026 as the trough for core Medicaid margins, a framing that points to gradual improvement from here.

Technology and scale give the story more support. Leaders pointed to AI tools alongside clinical care management as levers on cost, and the company is simplifying and reducing prior approvals. Optum Rx, meanwhile, now draws more than half of its members from outside customers rather than from UnitedHealthcare, which gives the pharmacy arm growth that does not hinge on the insurer’s own enrollment.

Check out our analysis on UnitedHealth Group (NYSE:UNH) here: UnitedHealth (UNH): Does Optum Truly Diversify Its Earnings Risk?

7. Amazon (NASDAQ:AMZN)

Number of Hedge Fund Holders: 369

Short Interest: 0.95%

Average Upside Potential: 25%

Amazon Web Services is accelerating at a scale few businesses have ever reached. AWS revenue grew 39% in the third quarter, its fastest pace in nearly five years, and Chief Executive Andy Jassy said growth should top 40% in both 2027 and 2028. Behind that confidence sits an AWS backlog of $578 billion, which is growing at a triple-digit rate.

Analysts focused on what that growth does for profits. On October 29, UBS analyst Stephen Ju wrote that he expects AWS operating margins of 46% in 2027, well above what the Street expects. KeyBanc Capital Markets’ Justin Patterson said AWS is well positioned to capture AI demand, from companies modernizing how they work to new consumer assistants. The quarter also produced Amazon’s highest operating margin ever, which suggests the heavy investment has not diluted profitability.

Amazon’s own chips add to the case, because customer commitments for its Trainium and Graviton processors rose many times over from a year earlier. Bedrock, the service that lets companies build on AI models, is the fastest-growing multibillion-dollar business in AWS history, Jassy said. Management says that demand is already signed, which is why it keeps spending on capacity.

Here is our analysis on Amazon (NASDAQ:AMZN): Amazon (AMZN) Trades at 24 Times Forward Earnings. Can Its Cash Engines Fund the Robotaxi Bet?

6. Boeing (NYSE:BA)

Number of Hedge Fund Holders: 90

Short Interest: 1.85%

Average Upside Potential: 32%

Boeing’s case rests on a backlog that now covers years of output. The planemaker ended the third quarter with a record $745 billion of orders, and it delivered 161 jets in the quarter, its best showing since 2018. Defense backlog also set a record, and Global Services, the parts and maintenance arm, posted double-digit margins, which adds steadier income alongside the cyclical aircraft business.

Regulatory and defense wins are filling in the story. The Federal Aviation Administration granted amended type certification to both the 737-7 and the 737-10, and the US Navy selected Boeing to design and build its F/A-XX next-generation fighter. That award is not yet counted in the backlog, so it represents additional visibility still to come.

Cash is the next proof point. Management laid out free cash flow targets that step up each year to $10 billion in 2029, and said a record backlog with improved pricing should underpin an improving margin profile. Executives also described the range of outcomes for the business as narrowing, which they said gave them the confidence to publish a multi-year plan.

Learn more from our analysis on Boeing (NYSE:BA) here: A $715B Order Book and Fighter Jet Wins: Time to Buy Boeing (BA)?

5. Salesforce (NYSE:CRM)

Number of Hedge Fund Holders: 99

Short Interest: 3.50%

Average Upside Potential: 33%

Salesforce is showing that its AI products are becoming a business of their own. Agentforce annual recurring revenue topped $1.5 billion in the fiscal second quarter, up more than 240% from a year earlier, and bookings for its premium Agentforce editions more than doubled from the prior quarter.

That momentum is lifting the core. Current remaining performance obligation, a gauge of contracted revenue, grew 14% in constant currency, and the company raised its full-year revenue outlook, citing organic strength in Agentforce, Data 360 and Slack. Free cash flow rose 81% in the quarter, which shows the AI push is not coming at the expense of cash generation.

Partnerships widen the reach. Salesforce announced Claudeforce, a planned Anthropic partnership that brings Claude into its data, applications and workflows. Management also said the number of customer accounts with agents in production grew sharply from the previous quarter, a sign that adoption is moving beyond pilot projects. Slack also delivered its fastest quarterly growth in net new annual order value since Salesforce acquired it, giving the AI push a workplace channel beyond sales and service.

Our analysis on Salesforce (NYSE:CRM) can be found here: Salesforce (CRM) Trails the Market in 2026: What Could Fuel a Re-Rating?