Markets have remained volatile over the past couple of months. Investors have been rotating out of tech and AI-related chip stocks as concerns grow over their sustainability. However, amid the ongoing volatility, the Dow has put up an impressive performance this year.
The blue-chip index closed at a record high on Monday to begin the first trading day of August on a high, following a stellar performance in the first half of the year.
Given the upbeat sentiment, investors should bet on these four fundamentally strong blue-chip stocks, namely The Goldman Sachs Group, Inc. GS, JPMorgan Chase & Co. JPM, The Travelers Companies, Inc. TRV and Johnson & Johnson JNJ. These companies are well-positioned to benefit from the market’s overall upward trend, offering the potential for solid returns.
Dow Hits All-Time High
The Dow surged 693.38 points, or 1.3%, on Monday to close at 53,178.41. This is the index’s 22nd record close of the year and the second in the second half of 2026. The Nasdaq has come under pressure lately amid a sharp selloff in tech stocks, while the Dow has edged higher as investors rotate out of AI-driven names and toward more defensive investments.
Growing concerns about the long-term sustainability of AI-related stocks have also weakened investor confidence. Needless to say, the Dow has had a stellar 2026 amid occasional corrections.
The blue-chip index surpassed the historic 50,000 threshold for the first time on Feb. 2. However, the index gave up some of the gains amid volatility, triggered by fluctuating oil prices and fears surrounding conflict in the Middle East, before making a solid rebound. In late June, the Dow surpassed the 52,000 milestone for the first time.
Strong earnings from major industry leaders in the first two quarters also helped power the Dow's rally in the first half of the year. The second half has also started on a high. Better-than-expected earnings from leading cyclical companies and major technology firms have been helping drive the broader index to record highs.
The Dow climbed 8.9% in the first six months of 2026, marking its strongest first-half performance since 2021. The index is now up nearly 9.2% year to date, after posting an almost 13% gain in 2025.
4 Dow Stocks With Upside
The Goldman Sachs Group
The Goldman Sachs Group, Inc. is a leading global financial holding company providing IB, securities, investment management, and consumer banking services to a diversified client base. GS is headquartered in New York, with offices in major financial centers globally.
The Goldman Sachs Group’s expected earnings growth rate for the current year is 34.2%. The Zacks Consensus Estimate for current-year earnings has improved 15.7% over the past 60 days. GS presently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong) stocks here.
JPMorgan Chase & Co.
JPMorgan Chase & Co. is one of the biggest global banks with assets worth $4.09 trillion and stockholders’ equity worth $336.6 billion as of Mar 31, 2024. With operations in more than 60 countries, JPM is one of the largest financial service firms in the world.
JPMorgan Chase has an expected earnings growth rate of 22.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.7% over the last 60 days. JPM currently carries a Zacks Rank #2.
The Travelers Companies
The Travelers Companies, Inc., a holding company, is principally engaged, through its subsidiaries, in providing a wide variety of property and casualty insurance and surety products and services to businesses, organizations and individuals in the United States. and select international markets.
The Travelers Companies has an expected earnings growth rate of 21.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 19.5% over the last 60 days. TRV currently carries a Zacks Rank #1.
Johnson & Johnson
Johnson & Johnson operates through pharmaceuticals and medical devices divisions. It has more than 275 subsidiaries, which clearly means that the business is extremely well diversified. Its diversification helps it to withstand economic cycles more effectively. JNJ has 28 platforms or products with more than $1 billion in annual sales. Meanwhile, J&J has one of the largest R&D budgets among pharma companies.
Johnson & Johnson has an expected earnings growth rate of 8.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last 60 days. JNJ currently carries a Zacks Rank #2.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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