Amazon stock may have been the worst performer of the “Mag 7” in 2025, but it is still positioned for continuous growth. The leading online retailer has shown consistent revenue growth since going public in 1997, with only one year of single-digit growth in the past 30 years. Amazon’s profitability has been more volatile, but its cloud-hosting business, Amazon Web Services (AWS), has been a significant contributor to its net operating income.
Despite a lackluster performance in 2025, Amazon is expected to bounce back in 2026, with accelerating growth in net sales and strong bottom-line performance. The company is set to report its fourth-quarter results soon, with analysts predicting a modest increase in earnings and sales. However, Amazon has a history of exceeding profit targets, which bodes well for its future performance.
Disney, another Dow Jones Industrial Average stock, also had a challenging year in 2025 but has shown momentum heading into 2026. The company’s streaming business became profitable in 2024, and it has produced some of the highest-grossing movies in recent years. With a forward earnings multiple in the teens, Disney is trading at an attractive valuation compared to its peers.
Coca-Cola, despite trading at a seemingly high multiple, has several factors working in its favor. The company has a global dominance in the beverage industry, a low beta, and an impressive streak of 63 consecutive years of annual dividend increases. Coca-Cola’s global reach has allowed it to pass on higher prices and maintain positive revenue growth over the past five years.
In conclusion, Amazon, Disney, and Coca-Cola are three Dow stocks with the right combination of catalysts and valuation to outperform the market in 2026. Investors should consider these stocks for their growth potential and strong fundamentals. Additionally, it is essential to conduct thorough research and consider all factors before making investment decisions.
