Wall Street analysts’ favorite Dow stocks heading into second quarter
The beginning of 2025 was a difficult one for the Dow Jones Industrial Average , but analysts are more optimistic on certain stocks heading into the second quarter. The 30-stock Dow has tumbled more than 2% in the first quarter. Chip giant Nvidia has led the decline with its 18% fall, followed by losses from Nike and Apple of more than 16% and roughly 13%, respectively. The broader market has sold off in recent weeks due to increasing concerns that President Donald Trump’s tariffs on major U.S. trading partners could weaken economic growth and place upward pressure on inflation. With this backdrop in mind, CNBC Pro screened for Dow stocks that analysts are feeling most bullish about. The stocks in the screener all met the following criteria: Have buy ratings from at least 55% of analysts covering the stock Could see upside of 20% or more to the average price target Take a look at the list and where analysts see them heading next. Despite Nvidia’s sharp sell-off at the start of the year, analysts think the stock has rebound potential. Nearly 80% of those covering the stock rate it a buy, and the average price target implies shares gaining about 53% from their current levels, according to FactSet. Earlier in the week, Bank of America said the recent pullback presents a prime buying point for those looking to gain exposure to the artificial intelligence giant. ″[W]e believe the stock is providing a particularly attractive opportunity for one of the most unique, high-quality tech franchises leading the largest and fastest growing secular trends,” analyst Vivek Arya wrote in a note. Microsoft is another megacap tech name analysts foresee climbing in the second quarter. Analysts polled by FactSet estimate the stock gaining nearly 30% from current levels, with the majority also holding a buy rating on shares. Jefferies recently reiterated the stock as one of its favorite names to hold, adding that the “recent weakness has created attractive risk/reward.” The firm also forecast Azure, Microsoft’s cloud computing platform, to continue gaining market share versus its competitor Amazon Web Services. Shares are down more than 10% in the first quarter. Entertainment and theme park company Disney also made the cut. More than half the analysts who watch the stock rate it a buy and see shares advancing about 26% from current levels, per FactSet data. Disney shares have come under pressure after the company reported streaming subscriber losses in its Disney+ division during its fiscal first-quarter earnings report. The company also guided toward another “modest decline” in subscribers for the current quarter. Nonetheless, Bank of America reiterated its conviction in the stock in a recent note. Despite risks from macro uncertainty, the firm said Disney’s fundamentals appear intact. The stock has tumbled about 12% in the first quarter. — CNBC’s Michael Bloom contributed to this report. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
