While the Dow Jones represents industry leaders, not every stock in the index is a safe bet. Some are facing headwinds like declining demand, rising costs, or disruptive new competitors.

Finding the best companies in the Dow Jones isn’t always straightforward, and that’s why we started StockStory. That said, here is one Dow Jones stock positioned for long-term growth and two that may face some trouble.

Two Stocks to Sell:

Honeywell (HON)

Market Cap: $121.6 billion

Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ:HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.

Why Does HON Give Us Pause?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth

2. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 3.9% annually

3. Free cash flow margin shrank by 3.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Honeywell’s stock price of $190.05 implies a valuation ratio of 17.3x forward price-to-earnings. Read our free research report to see why you should think twice about including HON in your portfolio, it’s free .

Sherwin-Williams (SHW)

Market Cap: $80.73 billion

Widely known for its success in the paint industry, Sherwin-Williams (NYSE:SHW) is a manufacturer of paints, coatings, and related products.

Why Are We Hesitant About SHW?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy

2. Projected sales growth of 2.6% for the next 12 months suggests sluggish demand

3. 8.4 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $325.43 per share, Sherwin-Williams trades at 25.7x forward price-to-earnings. Check out our free in-depth research report to learn more about why SHW doesn’t pass our bar .

One Stock to Watch:

McDonald's (MCD)

Market Cap: $214.4 billion

With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s (NYSE:MCD) is a fast-food behemoth known for its convenience and broken ice cream machines.

Why Is MCD Interesting?

1. Same-store sales growth averaged 4.5% over the past two years, showing it’s bringing new and repeat diners into its restaurants

2. Asset-lite franchise model is reflected in its superior unit economics and a best-in-class gross margin of 56.9%

3. MCD is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders