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Dow Hits 21st All-Time Closing High in 2026: Buy These 3 Stocks
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Key Takeaways
The Dow notched its 21st record closing high of 2026 as investors favored defensive assets.
GS offers expected 17.3% current-year earnings growth, with estimates rising over the past 60 days.
CAT and KO are backed by improving earnings estimates and solid current-year growth expectations.
Wall Street has turned volatile over the past two weeks, led by a massive tech selloff. However, the Dow has had a solid run this year, with the blue-chip index hitting a new all-time closing high on Thursday.
After a stellar first half of 2026, the Dow started the second half on a high, thanks to investors who have lately been taking refuge in defensive assets amid an AI-related tech selloff.
Given the positive sentiment, investors should bet on these three fundamentally strong blue-chip stocks, namely The Goldman Sachs Group, Inc. (GS - Free Report) , Caterpillar Inc. (CAT - Free Report) and The Coca-Cola Company (KO - Free Report) . These companies are well-positioned to benefit from the market’s overall upward trend, offering potential for solid returns.
Dow on a Rally
The Dow gained 1.1%, or 594.83 points, to close at a record high of 52,900.07 on Thursday. The milestone was achieved on the second trading day of the second half of the year. This is also the 21st record closing high for the blue-chip index this year.
While the Nasdaq has been weighed down lately by a massive selloff in tech stocks, the Dow has gained as investors are rotating out of AI-related stocks and taking refuge in defensive assets. Concerns over the sustainability of AI-related stocks have been dampening investors’ confidence.
The blue-chip index suffered in the early months of the year after the U.S-Iran war broke out in late February. However, easing geopolitical tensions over the past month led to a dip in global oil prices, helping the index.
Also, robust corporate earnings by industry bellwethers in the first two quarters fueled the Dow rally in the first half of the year.
The Dow gained 8.9% in the first half of 2026, to record its best first half since 2021. The index has gained nearly 10.1% year to date after rising nearly 13% in 2025.
With the Iran war likely to come to an end soon, inflation is expected to ease. Till some time back, the Federal Reserve was contemplating a rate hike this year as inflation surged on higher oil prices over the past few months. However, rate hike worries eased earlier this week, with the Fed indicating that inflation may decline in the near term.
3 Dow Stocks With Upside
The Goldman Sachs Group
The Goldman Sachs Group, Inc. is a leading global financial holding company providing IB, securities, investment management and consumer banking services to a diversified client base. GS is headquartered in New York, with offices in major financial centers globally.
The Goldman Sachs Group’s expected earnings growth rate for the current year is 17.3%. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the past 60 days. Currently, GS has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Caterpillar
Caterpillar Inc. is the largest global construction and mining equipment manufacturer. Given that it serves a gamut of sectors — infrastructure, construction, mining, oil & gas and transportation, CAT is considered a bellwether of the global economy. Caterpillar has more than 4 million products with an extensive dealer network of 165 dealers spanning 191 countries.
Caterpillar’s expected earnings growth for the current year is 29.4%. The Zacks Consensus Estimate for current-year earnings has improved 3.4% over the past 60 days. CAT currently carries a Zacks Rank #1.
The Coca-Cola Company
The Coca-Cola Company’s strong brand equity, marketing, research and innovation help it to garner a market share of more than 40% in the non-alcoholic beverage industry. KO is putting its best foot forward to evolve its business model to become a total beverage company with something for everyone to drink.
The Coca-Cola Company has an expected earnings growth rate of 8.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. The Coca-Cola Company currently has a Zacks Rank #2.
View the Zacks #1 Rank List
Image: Bigstock
Dow Hits 21st All-Time Closing High in 2026: Buy These 3 Stocks
Key Takeaways
Wall Street has turned volatile over the past two weeks, led by a massive tech selloff. However, the Dow has had a solid run this year, with the blue-chip index hitting a new all-time closing high on Thursday.
After a stellar first half of 2026, the Dow started the second half on a high, thanks to investors who have lately been taking refuge in defensive assets amid an AI-related tech selloff.
Given the positive sentiment, investors should bet on these three fundamentally strong blue-chip stocks, namely The Goldman Sachs Group, Inc. (GS - Free Report) , Caterpillar Inc. (CAT - Free Report) and The Coca-Cola Company (KO - Free Report) . These companies are well-positioned to benefit from the market’s overall upward trend, offering potential for solid returns.
Dow on a Rally
The Dow gained 1.1%, or 594.83 points, to close at a record high of 52,900.07 on Thursday. The milestone was achieved on the second trading day of the second half of the year. This is also the 21st record closing high for the blue-chip index this year.
While the Nasdaq has been weighed down lately by a massive selloff in tech stocks, the Dow has gained as investors are rotating out of AI-related stocks and taking refuge in defensive assets. Concerns over the sustainability of AI-related stocks have been dampening investors’ confidence.
The blue-chip index suffered in the early months of the year after the U.S-Iran war broke out in late February. However, easing geopolitical tensions over the past month led to a dip in global oil prices, helping the index.
Also, robust corporate earnings by industry bellwethers in the first two quarters fueled the Dow rally in the first half of the year.
The Dow gained 8.9% in the first half of 2026, to record its best first half since 2021. The index has gained nearly 10.1% year to date after rising nearly 13% in 2025.
With the Iran war likely to come to an end soon, inflation is expected to ease. Till some time back, the Federal Reserve was contemplating a rate hike this year as inflation surged on higher oil prices over the past few months. However, rate hike worries eased earlier this week, with the Fed indicating that inflation may decline in the near term.
3 Dow Stocks With Upside
The Goldman Sachs Group
The Goldman Sachs Group, Inc. is a leading global financial holding company providing IB, securities, investment management and consumer banking services to a diversified client base. GS is headquartered in New York, with offices in major financial centers globally.
The Goldman Sachs Group’s expected earnings growth rate for the current year is 17.3%. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the past 60 days. Currently, GS has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Caterpillar
Caterpillar Inc. is the largest global construction and mining equipment manufacturer. Given that it serves a gamut of sectors — infrastructure, construction, mining, oil & gas and transportation, CAT is considered a bellwether of the global economy. Caterpillar has more than 4 million products with an extensive dealer network of 165 dealers spanning 191 countries.
Caterpillar’s expected earnings growth for the current year is 29.4%. The Zacks Consensus Estimate for current-year earnings has improved 3.4% over the past 60 days. CAT currently carries a Zacks Rank #1.
The Coca-Cola Company
The Coca-Cola Company’s strong brand equity, marketing, research and innovation help it to garner a market share of more than 40% in the non-alcoholic beverage industry. KO is putting its best foot forward to evolve its business model to become a total beverage company with something for everyone to drink.
The Coca-Cola Company has an expected earnings growth rate of 8.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. The Coca-Cola Company currently has a Zacks Rank #2.