While the Dow Jones (^DJI) represents industry leaders, not every stock in the index is a safe bet. Some are facing headwinds like declining demand, rising costs, or disruptive new competitors.
Not all Dow Jones stocks are worth owning - which is why we built StockStory to help you invest wisely. That said, here is one Dow Jones stock that could be a good addition to your portfolio and two that may face some trouble.
Two Stocks to Sell:
Salesforce (CRM)
Market Cap: $212 billion
With its cloud-based platform named after its stock ticker symbol CRM (Customer Relationship Management), Salesforce (NYSE: CRM) provides customer relationship management software that helps businesses connect with their customers across sales, service, marketing, and commerce.
Why Are We Cautious About CRM?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 11.2% underwhelmed
- Anticipated sales growth of 10.4% for the next year implies demand will be shaky
- Operating margin failed to increase over the last year, indicating the company couldn’t optimize its expenses
Salesforce’s stock price of $258.25 implies a valuation ratio of 4.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than CRM.
Nike (NKE)
Market Cap: $57.95 billion
Originally selling Japanese Onitsuka Tiger sneakers as Blue Ribbon Sports, Nike (NYSE: NKE) is a global titan in athletic footwear, apparel, equipment, and accessories.
Why Are We Bearish on NKE?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Poor free cash flow margin of 5.9% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $39.18 per share, Nike trades at 23x forward P/E. If you’re considering NKE for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
McDonald's (MCD)
Market Cap: $186.5 billion
With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s (NYSE: MCD) is a fast-food behemoth known for its convenience and broken ice cream machines.
Why Are We Fans of MCD?
- Offensive push to build new restaurants and attack its untapped market opportunities is backed by its same-store sales growth
- Asset-lite franchise model is reflected in its superior unit economics and a best-in-class gross margin of 57.2%
- Robust free cash flow margin of 27.3% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business
McDonald's is trading at $264.28 per share, or 20x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
