The Dow Jones Industrial Average is a price-weighted index consisting of 30 stocks. It’s one of the oldest and best-known measures of stock market performance. The blue-chip index closed at a new all-time high Wednesday, dating all the way back to 1896.
Dow Jones stocks have returned an average of about 19 percent in 2021. Eighteen Dow components have underperformed the overall Dow average year-to-date and eight of those 18 stocks are currently trading negative for the year.
Here is a look at the Dow Jones stocks that are pacing to finish 2021 in the red.
Walt Disney Co.
Stock Price: $156.24 52-Week Range: $142.04–$203.02 YTD Performance: -13.77 percent Dow Inclusion: 1991Disney has been struggling to regain its footing after falling on weak financial results in November. Disney reported quarterly adjusted earnings of 37 cents, which came in below the estimate of 44 cents and guided for slowing Disney+ subscriber growth. Still, it seems to be a recurring top pick for 2022.
Verizon Communications Inc.
Stock Price: $52.49 52-Week Range: $49.69–$59.85 YTD Performance: -10.65 percent Dow Inclusion: 2004Revenue growth remains slow for Verizon. The company reported 4 percent growth year-over-year in its most recent earnings report. The main driving force for the stock’s decline may be the highly competitive nature of the wireless business. Competitors AT&T Inc. and T-Mobile US Inc. have both turned in similar performances in 2021.
Boeing Co.
Stock Price: $204.29 52-Week Range: $185.26–$278.57 YTD Performance: -4.57 percent Dow Inclusion: 1987It’s been a tough couple of years for Boeing. The company has battled COVID-19 pandemic-driven headwinds and issues with its 737 Max airplane. The 737 Max was grounded for an 18-month period following a pair of fatal crashes. Although deliveries ramped back up in 2021, lingering COVID-19 variant concerns have plagued the aerospace giant. Jim Cramer remains optimistic as he has been adding to his Boeing stake in recent weeks.
Honeywell International Inc.
Stock Price: $208.11 52-Week Range: $194.55–$236.86 YTD Performance: -2.16 percent Dow Inclusion: 2020Honeywell may be a similar story to Boeing with its exposure to the aerospace sector. The company cited “tough challenges in the supply chain environment” during its third-quarter earnings report. The stock fell from around $228 at the beginning of November to around $200 by the end of the month. It seems to be finding support around the $200 level.
Merck & Co., Inc.
Stock Price: $77.12 52-Week Range: $68.38–$91.40 YTD Performance: -1.13 percent Dow Inclusion: 1979Merck shares were also hit hard in November, trading lower by about 15 percent during the month. Shares have faced selling pressure since the company announced that its oral COVID-19 pill, molnupiravir, showed a drop in efficacy following the final analysis of the full data set. Following continued studies, the FDA granted molnupiravir Emergency Use Authorization on Dec. 23 for the treatment of high-risk adults with mild to moderate COVID-19.
Walmart Inc.
Stock Price: $143.12 52-Week Range: $126.28–$152.57 YTD Performance: -0.72 percent Dow Inclusion: 1997Walmart has been lagging behind the rest of the market for almost all of 2021, while other retailers such as Target have enjoyed sizable gains of more than 30 percent year-to-date. Despite an improving earnings outlook and several bullish ratings from analysts, the stock is on pace for its worst underperformance in more than five years.
Amgen Inc.
Stock Price: $228.52 52-Week Range: $198.64–$276.69 YTD Performance: -0.64 percent Dow Inclusion: 2020During Amgen’s most recent earnings report, the company said it expects its net selling price to continue to decline, citing increased competition. Amgen also saw some headwinds in terms of patient acquisition. “Overall, the gap in diagnosis visits over the course of the pandemic has suppressed the number of new patients starting treatment, which we expect will continue to impact our business for the remainder of the year,” Amgen said.
Visa Inc.
Stock Price: $218.30 52-Week Range: $190.10–$252.67 YTD Performance: -0.21 percent Dow Inclusion: 1991Visa is one of the world’s best-known payment brands. Street expectations pointed to 20 percent growth in fiscal 2022. During the company’s fiscal fourth-quarter 2021 earnings call, the company said it expects high-teens revenue growth in the first quarter. The stock fell about 7 percent following that announcement.
By Adam Eckert
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