The Dow Jones (^DJI) includes some of the most reliable stocks in the market, and while not all are equal, a few continue to shine. These companies are leveraging their strengths to maintain leadership and reward investors.
Not all Dow Jones stocks are created equal, and StockStory is here to help you find the ones with the most upside. Keeping that in mind, here are three Dow Jones stocks that could be good additions to your portfolio.
Microsoft (MSFT)
Market Cap: $3.79 trillion
Originally named "Micro-soft" for microcomputer software when founded in 1975, Microsoft (NASDAQ: MSFT) is a global technology company that develops software, cloud services, devices, and AI solutions for consumers, businesses, and organizations worldwide.
Why Are We Bullish on MSFT?
- Microsoft is one of the great brands not just in tech but all of business. It produces mission-critical software and bundles it together, resulting in cream-of-the-crop gross margins.
- The company's elite unit economics lead to robust profit margins that improve over time. This speaks to the scale advantages and operating efficiency across its diverse portfolio, which spans everything from Office and Azure to Minecraft.
- Microsoft has a virtuous cycle of returns. Its dominant market position enables it to generate strong free cash flow, and it reinvests these funds into promising ventures that further strengthen its competitive moat.
Microsoft’s stock price of $509.79 implies a valuation ratio of 34.2x forward price-to-earnings. Is now the right time to buy? See for yourself in our full research report, it’s free.
Amgen (AMGN)
Market Cap: $159.1 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 Are We Positive On AMGN?
- Annual revenue growth of 14.6% over the last two years beat the sector average and underscores the unique value of its offerings
- Economies of scale give it more fixed cost leverage than its smaller competitors
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $297.40 per share, Amgen trades at 14x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
UnitedHealth (UNH)
Market Cap: $275.5 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 Is UNH a Good Business?
- Unparalleled scale of $422.8 billion in revenue enables it to spread administrative costs across a larger membership base
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- ROIC punches in at 20.5%, illustrating management’s expertise in identifying profitable investments
UnitedHealth is trading at $301.21 per share, or 14.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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