The hit record highs on both Tuesday and Wednesday and seems set for more gains on Thursday, rising faster than other major US indexes.
By Wednesday’s close, the Dow was up about 2.7% for the week, compared with 1.8% for the S&P 500 and 1.7% for the .
Optimism about a possible end to the government shutdown has been a key driver of this week’s stock rally, helped by reports last Sunday suggesting a deal to reopen the government was near.
On Wednesday evening, the House of Representatives voted 222–209 to approve a bill releasing funds and ending the longest government shutdown in history, which President Trump quickly signed.
Another key trend this week has been investors shifting away from technology stocks. The huge sums flowing into AI are starting to raise concerns, prompting many to spread their investments more widely.
As a result, the rally is becoming broader, with money moving out of tech and into more traditional sectors such as industry, finance, and healthcare.
This helps explain why the Dow Jones has outperformed in recent days, since it includes far fewer technology stocks than the S&P or Nasdaq.
Given this backdrop, it makes sense to take a closer look at the Dow’s components to find the best opportunities for the weeks ahead.
Which Dow Jones Stocks Are Set To Lead the Next Market Move?
To find the best Dow Jones stocks, we used the Investing.com stock screener to identify the most undervalued Dow Jones stocks and those analysts see as having the strongest potential.
For undervaluation, we relied on InvestingPro’s Fair Value indicator, which combines several well-known valuation models.
Using this approach, we highlighted the 10 Dow Jones stocks with the highest upside potential based on InvestingPro’s Fair Value estimates.
ATTENTION: Although the basic functions of the Investing.com screener are available free of charge, in this search we used metrics reserved for InvestingPro, Pro+ plan subscribers.
According to InvestingPro’s Fair Value estimates, the 10 most undervalued Dow Jones stocks show upside potential ranging from 4.7% to 23.3%.
Next, we ranked Dow Jones stocks by their upside potential based on the average analyst price target to identify another top 10 list.
According to analysts, these Dow Jones stocks could gain between 18.8% and 37.2%.
Finally, InvestingPro also provides a ready-to-use AI-driven tool that identifies the best Dow Jones stocks each month.
This is the ProPicks AI “Dominate the Dow” strategy, which selects the 10 most promising Dow Jones stocks on the first day of each month. The strategy has consistently outperformed the DJIA by a wide margin.
In fact, the strategy has delivered a gain of 781% over the past 10 years, outperforming the Dow Jones by 512.8%. Click here to explore the ProPicks AI Dominate the Dow strategy and its performance history in detail.
Conclusion
The recent movement in the Dow Jones and the shift in overall market sentiment suggest that this historic US index could offer strong opportunities for outperformance through year-end. The research for this article also indicates that several DJIA stocks merit investors’ attention right now.
For those with different strategies, the screener also provides over 20 preconfigured searches tailored to various investment styles and goals.
If you’re not yet an InvestingPro subscriber and want to explore the opportunities mentioned in this article along with access to InvestingPro tools, you can now take advantage of an exclusive 55% early bird Black Friday discount by clicking the button below.
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AI-managed stock market strategies that are re-evaluated monthly.
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And many other tools that help tens of thousands of investors outperform the market every day!
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation, or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belong to the investor. We also do not provide any investment advisory services.
