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 But even blue-chip stocks can struggle - some are dealing with slowing growth, outdated business models, or increasing competition.
Just because a company is in the Dow Jones doesn’t mean it’s a great investment, and StockStory is here to help you separate winners from laggards. Keeping that in mind, here is one Dow Jones stock positioned for long-term growth and two that may struggle.
Two Stocks to Sell:
Home Depot (HD)
Market Cap: $358 billion
Founded and headquartered in Atlanta, Georgia, Home Depot (NYSE: HD) is a home improvement retailer that sells everything from tools to building materials to appliances.
Why Does HD Fall Short?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Widely-available products (and therefore stiff competition) result in an inferior gross margin of 33.4% that must be offset through higher volumes
- Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 3.3% annually
Home Depot is trading at $360.15 per share, or 23.9x forward P/E. Check out our free in-depth research report to learn more about why HD doesn’t pass our bar.
Verizon (VZ)
Market Cap: $172.4 billion
Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE: VZ) is a telecom giant providing a range of communications and internet services.
Why Should You Dump VZ?
- Customer additions have disappointed over the past two years, indicating the company’s value proposition may not be resonating
- Free cash flow margin is expected to remain in place over the coming year
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Verizon’s stock price of $40.81 implies a valuation ratio of 8.5x forward P/E. Read our free research report to see why you should think twice about including VZ in your portfolio.
One Stock to Watch:
Amgen (AMGN)
Market Cap: $171.1 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?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 15.8% annual sales growth over the last two years
- Economies of scale give it more fixed cost leverage than its smaller competitors
- Strong free cash flow margin of 29.9% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
At $319.19 per share, Amgen trades at 15x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% 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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