Wall Street Analysts' Top Dow Stocks for the Second Quarter

The start of 2025 has been challenging for the Dow Jones Industrial Average, but analysts are identifying opportunities in select stocks as the second quarter approaches.

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The 30-stock Dow has fallen over 2% in the first quarter, with notable declines from major companies. Nvidia, the semiconductor giant, has led the drop with an 18% loss, while Nike and Apple have also seen significant declines, down more than 16% and approximately 13%, respectively.

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The broader stock market has also faced downward pressure in recent weeks, largely due to mounting concerns that President Donald Trump’s tariffs on key U.S. trading partners could slow economic growth and contribute to inflationary pressures.

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Against this backdrop, CNBC Pro analyzed Dow components to identify stocks that analysts remain most optimistic about. The selected stocks met two key criteria:

• At least 55% of analysts covering the stock rate it as a “buy.”
• The stock has at least 20% upside potential based on the average price target.

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Nvidia: A Prime Rebound Candidate

Despite Nvidia’s steep drop to begin the year, analysts see significant recovery potential for the stock. Nearly 80% of analysts covering Nvidia rate it as a buy, and the consensus price target suggests an upside of roughly 53% from current levels, according to FactSet.

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Earlier this week, Bank of America highlighted the recent sell-off as a strong buying opportunity for investors looking to gain exposure to artificial intelligence (AI).

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“We 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,” wrote analyst Vivek Arya in a research note.

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Microsoft: Poised for Growth in the Second Quarter

Another megacap technology stock that analysts are bullish on is Microsoft. FactSet data indicates that analysts expect shares to rise nearly 30% from their current levels, with a majority maintaining a buy rating.

Jefferies recently reaffirmed its confidence in Microsoft, naming it as one of its top picks despite the recent decline in stock price. The firm pointed to a favorable risk/reward scenario and expressed optimism about Microsoft’s cloud computing division, Azure. Jefferies expects Azure to continue gaining market share from Amazon Web Services (AWS), strengthening Microsoft’s position in the competitive cloud industry.

So far this year, Microsoft shares have dropped more than 10%.

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Disney: Long-Term Potential Despite Challenges

Entertainment giant Disney has also made the list of Dow stocks analysts remain bullish on. More than half of the analysts covering Disney rate it as a buy, with the consensus price target implying a 26% upside, according to FactSet.

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Disney shares have struggled in early 2025, following its fiscal first-quarter earnings report, which revealed subscriber losses in its streaming division, Disney+. The company also warned investors about a potential “modest decline” in subscriber numbers for the current quarter.

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Despite these setbacks, Bank of America reaffirmed its positive outlook on Disney. The firm acknowledged macroeconomic uncertainties but stated that Disney’s core fundamentals remain solid.

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The stock has declined about 12% in the first quarter.

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While the broader market has been weighed down by concerns about trade policies and inflation, analysts believe select stocks within the Dow have significant upside potential. Nvidia, Microsoft, and Disney have all experienced notable declines, but Wall Street remains optimistic that these companies can rebound in the months ahead.

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