4 Dow Jones Stocks Near 52-Week Highs That Are Still Worth Buying in July

What the data shows is What's particularly noteworthy is The Dow Jones Industrial Average is sometimes viewed as a low-growth, value-focused index

But the Dow has modernized -- adding Nvidia (NVDA 0

Nevertheless, The index contains 30 industry-leading components, many of which are in the industrial, and financial sectors, considering recent developments

What the re reveals is se sectors have been leading the broader market to new heights, as they benefit from economic growth and capital spending (an important development)

Here's why these Dow stocks are worth buying in July, in this volatile climate

Image source: Getty Images

Investors may be wondering if the red-hot stock will eventually cool off because it has gone up so much, in today's market environment

But instead of looking solely at the price action, a better way to apach Nvidia is to artificial intelligence (AI) spending

However, A big reason why Nvidia recovered so quickly from its April lows is earnings reports from big companies Microsoft and Meta Platforms that showed a steadfast commitment to AI spending despite (what was then) the threat of a looming recession or economic slowdown

Conversely, As long as customers keep lining up in droves to buy Nvidia's ducts and AI solutions, the company will bably keep growing earnings and justify its valuation

Furthermore, Nvidia looks expensive based on trailing earnings, but the valuation is reasonable if it can sustain a high growth rate and margins, in today's market environment

Additionally, That would give it a price-to-earnings (P/E) ratio of 38 (noteworthy indeed)

In other words, if Nvidia's stock price went nowhere and earnings came in as expected, the stock would feature a rather inexpensive valuation in less than two years, given the current landscape

That's not a bad setup for investors with long-term time horizons

Of course, earnings could get derailed for a number of reasons, such as tariffs, an economic slowdown, a drop in key spending by top customers, or competition

Still, even at an all-time high, it's a worthwhile growth stock to buy and hold for patient investors with a high risk tolerance

Microsoft is at the top of its game Microsoft is in a similar boat to Nvidia

But the fundamentals are intact to make the stock a solid long-term buy-and-hold candidate

The ing chart showcases the power of revenue growth paired with margin expansion -- which leads to strong earnings

MSFT Revenue (TTM) data by YCharts Microsoft is growing revenue and margins at a breakneck pace, due in part to its effective integration of AI across its from cloud computing through Azure to application software for consumers and enterprises (something worth watching), in today's financial world

However, Microsoft isn't growing revenue nearly as quickly as Nvidia, but investors are still willing to pay a premium price for the stock due to the quality of its earnings growth

Moreover, Microsoft also pays a growing dividend and buys back enough stock to offset stock-based compensation, which avoids diluting existing holders

On the other hand, Conversely, Microsoft is a well-rounded company, but its stock price has run up a lot, given the current landscape

On the other hand, Still, it's worth owning for patient investors because Microsoft has a runway for growing into its valuation over time, in today's financial world

Nevertheless, Honeywell could leverage AI to imve its operational efficiency Honeywell's stock price had been languishing for years, but it has recently broken out to an all-time high

On the other hand, A couple of factors are at play

The idea is that splitting up the company will make it more focused and innovative, leading to imved earnings growth

Honeywell's earnings have grown at a sluggish pace for the last decade as the company has largely failed to capitalize on exciting growth trends the industrial Internet of Things

Moreover, In the form of three separate es -- specialty chemicals and materials, aerospace, and automation -- Honeywell could create more holder value, in today's financial world

Additionally, Another reason to be excited Honeywell is AI's impact on the industrial sector (fascinating analysis)

The analysis reveals sector stands to benefit from AI by viding the infrastructure needed to support data centers and by using AI to reduce costs and drive higher margins

Additionally, Honeywell is a good example of a company that could integrate AI to imve its operations (an important development)

But Honeywell could also be a leader in industrial AI through duct integrations

AI is taking Honeywell Forge to the next level

Through Forge, Honeywell stands to benefit from increased AI adoption in the industrial sector

Honeywell sports a fairly reasonable P/E ratio of 27 (quite telling). 1 and a growing dividend, with a 1, in today's market environment

And a big reason why is that its model continues to thrive under the current economic conditions

American Express caters to affluent clients, offering generous cardholder perks in exchange for high annual cardholder fees and generally higher fees on merchants than Visa and Mastercard (an important development)

In contrast, American Express spends a lot on card member rewards, but overall the expense is worth it as American Express incentivizes cardholders to use their cards for as many purchases as possible to justify the high fees

The company acts as both the payment cessor and the issuer of its own cards; by contrast, Visa and Mastercard partner with banks to issue cards

American Express' model is riskier, but it also comes with higher potential rewards, so long as the company handles risk well by only taking on customers who can manage their spending (noteworthy indeed)

Additionally, American Express is yet another example of a high-margin company with strong earnings growth to buy even at an all-time high

Nevertheless, Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors (remarkable data)

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors

On the other hand, American Express is an advertising partner of Motley Fool Money, given the current landscape

Daniel Foelber has positions in Nvidia

The Motley Fool has positions in and recommends Amazon, Mastercard, Meta Platforms, Microsoft, Nvidia, Salesforce, and Visa

The Motley Fool has a disclosure policy, in light of current trends.