Key Facts
The Dow Jones Industrial Average experienced a notable rally in 2025, rising 13% and approaching the 49,000 mark. While the index has a long history of adaptation and success, investors should focus on specific stocks for 2026.
Highlighted for potential gains are Visa and UnitedHealth Group. Visa, whose forward price-to-earnings (P/E) ratio is at 24, is expected to benefit from a favorable economic climate and ongoing global expansion. Meanwhile, UnitedHealth Group, after facing challenges in 2025, is projected to improve margins through strategic adjustments in its operations and pricing.
Conversely, Nvidia is advised against for 2026 due to potential risks of an AI bubble, rising internal competition as customers develop their own alternatives, and its historically high price-to-sales (P/S) ratio. Nvidia’s P/S ratio reached 30 recently, indicating a premium valuation that may not be sustainable.
