How is the Dow Jones Industrial Average(DJINDICES: ^DJI) performing this year? It might depend on whether you view the proverbial glass of water as half-empty or half-full.
If you're the half-empty kind of person, you'd probably note that the Dow hasn't gained nearly as much at this point in the year as it did in 2024. On the other hand, those who view the glass of water as half-full would likely point out that the index is on pace for another strong performance if it continues rising at the current clip.
Regardless of your perspective on the overall Dow Jones index, some of its members are doing quite well. These three Dow stocks are especially crushing it in 2025. Are they still buys?
1. International Business Machines
International Business Machines(NYSE: IBM) ranks as the best Dow Jones stock of the year so far. Shares of the longtime technology leader are up nearly 20%. IBM is easily on track to beat its 34% gain in 2024.
There's a simple reason behind IBM's momentum: Big Blue is making big waves. IBM generated revenue of $17.6 billion in the fourth quarter of 2024. CEO Arvind Krishna noted in the company's Q4 update, "Our generative AI book of business now stands at more than $5 billion inception-to-date, up nearly $2 billion quarter over quarter."
Chinese AI company DeepSeek rattled some with its introduction of a low-cost AI model. However, IBM could potentially be a winner from DeepSeek's disruption. The company's AI models are relatively inexpensive and focused on specific purposes rather than general use. IBM's AI approach is to help clients deploy AI to solve real-world problems. If DeepSeek helps usher in a new era of cheaper and more widely available AI solutions, it should benefit IBM.
2. Amgen
Amgen(NASDAQ: AMGN) is another big Dow winner in 2025 with its shares jumping 16% year to date. That's a nice reversal for one of biotech's pioneers after its stock tumbled nearly 10% last year.
Things definitely appear to be looking up for Amgen. The company beat analysts' Q4 earnings estimates. Ten of its products delivered double-digit percentage sales growth in 2024. Amgen's free cash flow soared to $10.4 billion last year from $7.4 billion in 2023.
The company also won U.S. Food and Drug Administration approval for Lumakras last month as a treatment for KRAS G12C-mutated metastatic colorectal cancer. This is important, considering that colorectal cancer is the No. 3 cause of cancer-related deaths in the U.S. and there's significant unmet medical need.
3. The Coca-Cola Company
The Coca-Cola Company(NYSE: KO) isn't too far behind Amgen with a year-to-date gain of nearly 15%. This surge has put the food and beverage giant's stock near its all-time high.
Like IBM and Amgen, Coca-Cola gave investors what they wanted with its latest quarterly results. The company beat Wall Street's revenue and earnings estimates for Q4. It gained market share in nonalcoholic ready-to-drink beverages.
Coke also extended one of the most impressive streaks of dividend hikes in the stock market. Last week, the company announced its 63rd consecutive annual dividend increase, further solidifying its place among the elite group of stocks known as Dividend Kings.
Are these Dow stocks still buys?
Although IBM, Amgen, and Coca-Cola have delivered impressive gains so far this year, I don't think any of these stocks will be especially appealing to growth investors. IBM might surprise me and grow faster than I expect (perhaps with a major quantum computing breakthrough or something equally momentous). However, I wouldn't bet on it.
Amgen could be attractive to value investors. Its forward price-to-earnings ratio is only 14.8. The big biotech company also hopes to generate reasonably strong growth through the rest of the decade led by key products including asthma drug Tezspire and a promising pipeline.
Income investors could like all three stocks, especially Amgen and Coca-Cola. Amgen offers a forward dividend yield of 3.14% -- the highest of the group. But if you're looking for the strongest dividend track record, Coke wins the prize hands-down.
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool recommends Amgen. The Motley Fool has a disclosure policy.
