We recently published a list of 12 Best Dow Stocks to Buy Right Now. In this article, we are going to take a look at where JPMorgan Chase & Co. (NYSE:JPM) stands against other best Dow stocks to buy right now.
The Dow Jones Industrial Average is among the most popular stock market indices globally. Known as the Dow, the index monitors the performance of 30 blue-chip companies listed on the US stock exchanges. In 2024, the Dow index returned over 16%, compared to a 25% return for the broader market.
Historically, the Dow has performed better compared to the broader market. According to S&P Global, in the past 30 years up until June 2021, the Dow index returned approximately 11.16% compared to the market’s return of 10.6%. This growth is mainly due to the Dow’s stable, industry-leading companies that offer reliable dividends and returns.
READ ALSO: 7 Most Undervalued Financial Stocks To Buy According to Analysts.
Since the beginning of 2025, Dow Jones has soared over 4% as mega-cap tech stocks surged following their positive earnings. Whereas, the S&P 500 index has jumped by 3.70% year-to-date, as of January 23.
Trump’s AI startup initiative is already pumping the tech stocks. The $500 billion Stargate AI infrastructure project led by Oracle, OpenAI, and SoftBank will accelerate the AI demand. Tech stocks are already dominating the market driven by the huge demand for AI. Nasdaq Composite returned nearly 30% in 2024, outperforming the Dow and the S&P 500.
The U.S. economy is expected to perform better this year compared to 2024 followed by lower interest rates and PCE inflation expected around 2.1%. Economists anticipate a suitable atmosphere for mergers and acquisitions.
Investing in Dow Jones stocks can be appealing in 2025 as they offer huge dividends and returns. The Dow stocks have strong balance sheets and have a proven track record of high yields.
Our Methodology
We shifted through the Dow Jones Index and selected the 12 best Dow stocks based on hedge fund sentiment around each stock using Insider Monkey’s data for Q3 2024. The best Dow stocks are ranked in ascending order of their hedge fund holdings.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A group of business people discussing plans around a boardroom table adorned with a financial services company logo.
JPMorgan Chase & Co. (NYSE:JPM)
No. of Hedge Fund Holders: 105
JPMorgan Chase & Co. (NYSE:JPM) is an American multinational financial services and investment banking company. JPMorgan manages its operations through three segments including Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management.
JPMorgan Chase & Co.’s diversified financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management make it an attractive investment option. The company’s overall stability relies on its diversification which allows it to create a balance across different segments.
JPMorgan Chase & Co. (NYSE:JPM) outperformed the broader financial market, rising by more than 54% in 2024. In Q4 2024, the company’s earnings and revenue beat the estimates. The revenue came in at $43.74 billion, up by 13.4% year-over-year, while the EPS was $4.81, beating estimates of $3.89 per share. The increased sales in Q4 were driven by double-digit growth in payment fees, which recorded double-digit growth for the fourth consecutive quarter.
The company continued to expand its customer base across Consumer Banking, Business Banking, Card, and Wealth Management. For instance, Asset and Wealth Management experienced record long-term net inflows of $234 billion, driven by positive growth across all channels, regions, and asset classes. In addition, JPMorgan Chase & Co. registered 2 million net new checking accounts in 2024.
JPM’s capital management also remains robust as the CET1 ratio improved to 15.7%, up 40 basis points quarter-over-quarter. The company remains committed to returning capital to shareholders through dividends, returning $3.5 billion to investors through dividends in Q4 2024.
Overall, JPM ranks 8th on our list of best Dow stocks to buy right now. While we acknowledge the potential of JPM to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
