3 Dow Giants Lagging in 73% Rally: Honeywell, Nike, Salesforce
The Dow Jones Industrial Average (^DJI) has soared by 73% since the start of 2023, but not all components are performing equally. Contrarian investors seeking value in a premium-priced market may find opportunities in Honeywell (HON), Nike (NKE), and Salesforce (CRM).
Honeywell, a once-struggling industrial giant, is set to split into three independent companies by late 2024. This strategic move comes after investor pressure due to Honeywell's failure to capitalize on industry growth trends. Meanwhile, Nike has faced challenges due to industry-wide pullbacks and self-inflicted issues like overspending on marketing. The sportswear giant has implemented leadership changes to turn its business around and return to growth.
Salesforce, a leader in customer relationship management (CRM) software, has developed agentic AI tools under its Agentforce lineup. These tools allow users to build, edit, and interact with media. However, the company has faced slowing growth and concerns about monetizing its artificial intelligence (AI) advancements.
As the Dow continues its upward trajectory, investors should keep an eye on these three companies. Honeywell's transformation, Nike's turnaround, and Salesforce's AI innovations could present unique opportunities in the current market landscape. While there are no specific replacements identified for Honeywell in the Dow Jones Industrial Average for 2026, strong performers in sectors like technology or healthcare could potentially fill that spot based on market trends and industry dominance.
