The Least Successful Stocks in the Dow Jones Industrial Average's Ranking Draw Near the End of 2024
The Dow Jones Industrial Average (^DJI) is having a fantastic year, seeing a rise of over 15%. This puts it in a position to surpass its 2023 return of almost 14%.
Various high-performing stocks have played a significant role in the Dow Jones's growth. They've served to counterbalance the subpar performance of certain prominent underachievers. Below are the five Dow stocks that have struggled the most this year:
It's noteworthy to mention that two names are absent from that chart: Intel and Dow. They were removed as part of the 30-stock index on November 8. However, despite no longer being members, they had significant influence during most of the year.
Their exclusion is worth noting because they were two of the weakest performers in the Dow Jones before their departure. Intel's shares plummeted by more than half, while Dow experienced a 20% dip. The Dow Jones replaced them with Nvidia and Sherwin-Williams to ensure better representation of the semiconductors industry and the materials sector.
Now that Intel is no longer part of the Dow, Boeing (BA) takes the title of the worst performer this year. The aerospace company has faced numerous challenges in recent times, such as production delays, safety concerns, and a labor dispute. These issues resulted in a massive loss of over $6 billion in the third quarter. To cope with its mounting losses, Boeing raised over $22 billion in fresh capital.
Nike (NKE) is another notable laggard. The sportswear giant made some crucial mistakes in recent years, allowing competitors to seize market share. This impacted Nike's financial performance (revenue dropped by 10% in its recently reported fiscal 2025 first quarter, while earnings per share plummeted by 26%). These setbacks led Nike to recruit a 30-year company veteran out of retirement to lead its comeback.
Despite underperforming this year, these Dow stocks are determined to bounce back. This makes them attractive prospects for investors hoping to benefit from a potential recovery.
In the context of potential investments, the strong performance of the Dow Jones Industrial Average could indicate favorable financial outcomes for investors who have allocated their money towards this index. Furthermore, despite facing significant challenges, companies like Boeing and Nike, despite underperforming this year, still present potential opportunities for investors seeking to invest in turnaround stories.
