5 Worst Performing Dow Stocks YTD

1. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)        

Year-to-Date Share Price Performance as of October 11: -39.23%

Number of Hedge Fund Holders: 34

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) functions as a retail company focused on health and beauty, primarily centered around pharmacies. In the United States, the company offers prescription medications and a variety of retail items. Meanwhile, the International segment focuses on health, wellness, beauty, personal care, and other consumer products.

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is one of the worst performing Dow stocks based on year-to-date share price performance. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)’s earnings miss for Q3 2023 added to its declining stock. The company also lowered its full-year 2023 guidance and provided a less optimistic preliminary outlook for 2024. Several factors contributed to this, including tough economic conditions, decreased demand for COVID-related products and services, and a weaker respiratory season, all of which put pressure on the company’s profit margins.

According to Insider Monkey’s second quarter database, 34 hedge funds were bullish on Walgreens Boots Alliance, Inc. (NASDAQ:WBA), down from 39 in the prior quarter. John W. Rogers’ Ariel Investments held a significant position in the company, with 1.26 million shares worth $35.86 million.

Ariel Appreciation Fund made the following comment about Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q2 2023 investor letter:

“Shares of retail drugstore operator Walgreens Boots Alliance, Inc. (NASDAQ:WBA), tumbled following an earnings miss and subsequent reduction in full year 2023 guidance and lower preliminary 2024 outlook. Challenging consumer and macroeconomic conditions, a significant decline in demand for COVID-related products and services, and a weaker respiratory season pressured margins. In response, management raised its cost savings program target and implemented capital spend reductions to optimize profitability for its U.S. Healthcare segment. As investors remain on the sidelines, we look to WBA’s free cash flow generation and 4.8% dividend yield to cushion further downside. With shares trading at a 62% discount to our estimate of private market value, we believe the risk/reward to be skewed sharply to the upside.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 16 Best Growth Stocks To Buy According To Hedge Funds and 10 Best Natural Resources ETFs.