The Dow Jones (^DJI) is home to corporate giants, but size alone doesn’t guarantee success. A few of these companies are struggling with weak fundamentals, paradigm shifts, or poor execution.
Finding the best companies in the Dow Jones isn’t always straightforward, and that’s why we started StockStory. Keeping that in mind, here are two Dow Jones stocks positioned for long-term growth and one that may face some trouble.
One financials stock to sell:
Goldman Sachs (GS)
Market cap: $272.1 billion
Founded in 1869 as a small commercial paper business in New York City, Goldman Sachs (NYSE:GS) is a global financial institution that provides investment banking, securities, asset management, and consumer banking services to corporations, governments, and individuals.
Why Are We Hesitant About GS?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.6% over the last five years was below our standards for the financials sector
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 2.6% annually
- Sizable asset base leads to capital growth challenges as its 7.3% annual tangible book value per share increases over the last five years fell short of other financials companies
Goldman Sachs is trading at $900.38 per share, or 12.5x forward P/E. Read our free research report to see why you should think twice about including GS in your portfolio.
Two financials stocks to buy:
Visa (V)
Market cap: $791.2 billion
Processing over 829 million transactions daily and connecting billions of cards to 150 million merchant locations worldwide, Visa (NYSE:V) operates one of the world's largest electronic payments networks, facilitating secure money movement across more than 200 countries through its VisaNet processing platform.
What Makes V Stand Out?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 13.7% annual sales growth over the last five years
- Share repurchases over the last five years enabled its annual earnings per share growth of 17.6% to outpace its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Visa’s stock price of $425.10 implies a valuation ratio of 27.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
American Express (AXP)
Market cap: $219.9 billion
Recognizable by its iconic green logo and the slogan "Don't leave home without it," American Express (NYSE:AXP) is a global payments company that issues credit and charge cards, processes merchant transactions, and offers travel and lifestyle benefits to consumers and businesses.
Why Will AXP Outperform?
- 12.1% annual revenue growth over the last five years surpassed the sector average as its products resonated with customers
- Annual tangible book value per share growth of 12.4% over the last two years beat the financials sector average and underscores the improved strength of its balance sheet
- ROE punches in at 33.7%, illustrating management’s expertise in identifying profitable investments
At $328.55 per share, American Express trades at 16.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.