The Dow Jones (^DJI) is made up of 30 of the most established and influential companies in the market. But even blue-chip stocks can struggle - some are dealing with slowing growth, outdated business models, or increasing competition.
Finding the best companies in the Dow Jones isn’t always straightforward, and that’s why we started StockStory. That said, here are two Dow Jones stocks positioned for long-term growth and one best left off your watchlist.
One Stock to Sell:
3M (MMM)
Market Cap: $80.01 billion
Producers of the first asthma inhaler, 3M Company (NYSE: MMM) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.
Why Do We Avoid MMM?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Earnings per share have contracted by 3.4% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
3M’s stock price of $150.49 implies a valuation ratio of 19x forward P/E. Dive into our free research report to see why there are better opportunities than MMM.
Two Stocks to Watch:
Amgen (AMGN)
Market Cap: $149.7 billion
Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.
Why Does AMGN Stand Out?
- Solid 14.1% annual revenue growth over the last two years indicates its offering’s solve complex business issues
- Revenue base of $34.13 billion gives it economies of scale and some negotiating power
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Amgen is trading at $279.50 per share, or 13.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
UnitedHealth (UNH)
Market Cap: $270.4 billion
With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.
Why Will UNH Outperform?
- Massive revenue base of $410.1 billion gives it meaningful leverage when negotiating reimbursement rates
- Share repurchases over the last five years enabled its annual earnings per share growth of 13.1% to outpace its revenue gains
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
At $298.95 per share, UnitedHealth trades at 9.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
