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 But even blue-chip stocks can struggle - some are dealing with slowing growth, outdated business models, or increasing competition.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. That said, here is one Dow Jones stock that will likely remain a market leader and two best left off your watchlist.
Two Stocks to Sell:
Salesforce (CRM)
Market Cap: $173.6 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 Do We Think Twice About CRM?
- ARR growth averaged a weak 9.1% over the last year, suggesting that competition is pulling some attention away from its software
- Anticipated sales growth of 11.8% for the next year implies demand will be shaky
- Operating margin improvement of 1.7 percentage points over the last year demonstrates its ability to scale efficiently
Salesforce is trading at $185.65 per share, or 4x forward price-to-sales. Read our free research report to see why you should think twice about including CRM in your portfolio.
Verizon (VZ)
Market Cap: $205 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 Do We Avoid VZ?
- Annual sales growth of 1.5% over the last five years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
- Free cash flow margin is expected to remain in place over the coming year
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Verizon’s stock price of $48.66 implies a valuation ratio of 9.8x forward P/E. To fully understand why you should be careful with VZ, check out our full research report (it’s free).
One Stock to Watch:
Procter & Gamble (PG)
Market Cap: $368.5 billion
Founded by candle maker William Procter and soap maker James Gamble, Proctor & Gamble (NYSE: PG) is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.
Why Could PG Be a Winner?
- Dominant market position is represented by its $85.26 billion in revenue, which gives it negotiating power with suppliers and retailers
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 25.4%
- Strong free cash flow margin of 18.3% enables it to reinvest or return capital consistently
At $158.45 per share, Procter & Gamble trades at 22x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. 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 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
