Top 3 Dow Jones Stalwarts Poised for Boost Thanks to Tech Rotation
Here's why Walmart, 3M and Travelers could continue to outperform the major indexes.
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On Tuesday, we focused on the rotation away from large-cap tech and into the pharmaceutical sector. We also showed some love for Dow Jones Industrial Average components Johnson & Johnson (JNJ) and Merck (MRK) . Both of those names are finally showing signs of life after several years of subpar returns.
J&J and Merck aren’t the only Dow components that have recently outperformed large-cap tech. If capital is indeed moving away from tech, there are three more Dow names in particular that stand to benefit.
Tech isn’t dead, it’s just cooling off for now. That’s why we trimmed our tech positions, particularly those related to AI, rather than exit them completely. If we believed the tech rally was truly over, we’d be closing out all our related positions.
Here are three components of the Dow Jones Industrial Average that stand to benefit from a rotation away from tech.
1. Walmart (WMT)
Shares of Walmart (WMT) soared after a successful earnings report two weeks ago (point A), and the stock has continued its rally since then. Walmart shares closed at an all-time high on Friday (point B). The stock has gained nearly 10% over the past month, and climbed by over 23% year-to-date.
The Bentonville, Arkansas retailer is rapidly growing its online business, but still trails ecommerce juggernaut Amazon (AMZN) in that area by a wide margin. Amazon’s share of the online marketplace stands at 37.6%, while second-place Walmart accounts for 6.4% of all online sales. This means Walmart has plenty of room for growth.
2. 3M Company (MMM)
3M (MMM) makes items that consumers use every day. Many of us associate the Minnesota-based manufacturer with items like Scotch tape and sticky pads, but the company also provides tools, electronic components and medical and lab equipment.
While 3M’s products may not seem exciting, the stock’s 31% year-to-date return is anything but mundane. 3M seems poised to climb higher, as an ascending triangle pattern has recently formed (black lines).
The bullish technical formation suggests the stock could climb to $185. A close above $172.85 (horizontal black line) would place 3M at a four-year high.
3. The Travelers Company (TRV)
Insurance may not sound exciting, but don’t tell that to shareholders of The Travelers Company (TRV) .
Last year, shares of the New York-based insurance provider gained over 26%, and the stock has climbed by over 20% in 2025. Shares of Travelers reached an all-time high last week.
Travelers exceeded earnings expectations in mid-October. Since then, the stock has gained about 15% in under two months.
At the time of publication, Ponsi was long WMT, JNJ and MRK.
