Buying quality companies when they’re out of favor might be a wise investment in the long term.
Momentum investors chase stocks that are gaining traction, while contrarian investors are often willing to buy stocks that are declining, provided their fundamentals remain strong.
Even though the Dow Jones Industrial Average has risen over 14% since January, as of December 26, five Dow stocks are projected to decrease by 10% or more in 2025. These stocks include Home Depot, Procter & Gamble, Nike, Salesforce, and UnitedHealth Group.
Here’s why these five stocks might be appealing for value investors in 2026.
1. Home Depot
Home Depot has seen its profits slow due to challenges in the housing market and pressure on consumer spending. While stock markets are near record highs, consumer sentiment is lagging, influenced by rising costs, inflation, and trade policies.
Home Depot typically performs better when consumer confidence is high and spending on home improvement are prioritized. For patient investors, acquiring Home Depot stock when it’s down could be a smart move. The company has been focusing on long-term growth, investing heavily in acquisitions and opening new stores, positioning itself well for a market rebound.
At the moment, investors can purchase the stock at a reasonable rate of 24.1 times forward earnings, plus benefit from a reliable dividend with a yield of 2.7%.
2. Procter & Gamble
Consumers are not only cutting back on discretionary spending like renovations; the consumer staples sector has also seen lower performance. In 2025, the S&P 500 experienced a slight decline compared to a significant increase in prior years.
Procter & Gamble faced challenges as well, yet has managed to maintain hefty profit margins thanks to its diverse product range and strong supply chain. The company continues to see revenue growth, albeit slower than before, but remains relatively stable compared to competitors. P&G’s dividend history is impressive, with 69 years of increases and a current yield of 2.9%.
3. Nike
Nike’s stock recently benefited from some notable buying activity, but it has faced a downturn for four consecutive years. Various factors, including tariffs and consumer pressures in North America, have hampered the company, and the need for innovation looms large as competition intensifies.
While some may hesitate to invest until there’s clearer evidence of a turnaround, those who trust in Nike’s brand might find its stock worthwhile, especially with a dividend yield of 2.7%.
4. Salesforce
Salesforce, once a market favorite, has struggled through significant drops in stock value as doubts emerge about the role of software in an increasingly AI-driven age. Companies are adapting, but Salesforce is proactively introducing innovative tools to enhance user experience and productivity.
Although the growth rate has slowed, Salesforce still remains a leader in the enterprise software space, with strong profit margins. It trades at a low valuation of 22.6 times forward earnings, and offers a modest dividend yield of 0.6%, making it an attractive option for long-term investors seeking value.
5. UnitedHealth
UnitedHealth was the biggest loser in the Dow in 2025, with its value dropping about a third. Underestimating various market pressures led to challenges, including a criminal investigation by the Department of Justice. However, the company’s structure supports recovery potential.
UnitedHealth operates with two main divisions that provide reliable cash flow, and after raising premiums to offset increased costs, it’s well-positioned for 2026. Trading at 20.3 times forward earnings and offering a 2.7% dividend yield, this stock could be a favorable pick for value investors looking ahead.
