5 Worst Performing Dow Stocks YTD

In this article, we discuss 5 worst performing Dow stocks year-to-date. If you want to read our detailed discussion on stock market performance overall, head over to 15 Worst Performing Dow Stocks YTD.

5. The Coca-Cola Company (NYSE:KO)   

Year-to-Date Share Price Performance as of October 11: -14.68%

Number of Hedge Fund Holders: 61

The Coca-Cola Company (NYSE:KO) is one of the worst performing Dow stocks. It is a beverage company that produces, promotes, and sells different kinds of non-alcoholic drinks all around the world. The company offers fizzy soft drinks, different flavors of fizzy drinks, water for sports, coffee, and tea. The Coca-Cola Company (NYSE:KO)’s stock faced a significant decline as investors expressed concerns about the potential impact of increasing demand for weight loss medications on food and beverage sales. This recent downturn adds to the challenges the company has already experienced in 2023, resulting in a decrease of approximately 15% for its shares.

According to Insider Monkey’s second quarter database, 61 hedge funds were bullish on The Coca-Cola Company (NYSE:KO), same as the previous quarter. Warren Buffett’s Berkshire Hathaway is the leading shareholder of the company, with 400 million shares worth approximately $24.1 billion.

Rowan Street Capital made the following comment about The Coca-Cola Company (NYSE:KO) in its Q4 2022 investor letter:

“Let’s take The Coca-Cola Company (NYSE:KO) for example. Its dividend yield is 2.8%, earnings are estimated to grow at only 3.6% rate per year over next 4 years, and its earnings multiple is currently at 24x (based on next year’s forecasted earnings). KO has an anemic growth, so we can argue that paying 24x earnings is not very attractive. Let’s assume that the multiple will stay constant over the next 3-5 years, thus our expected annual returns will be 2.8%+3.6% = 6.4% (that is below the current reported inflation rate and only slightly above the risk-free rate of 4%).”

4. NIKE, Inc. (NYSE:NKE)   

Year-to-Date Share Price Performance as of October 11: -16.93%

Number of Hedge Fund Holders: 70

NIKE, Inc. (NYSE:NKE) creates, develops, promotes, and sells sports footwear, clothing, gear, accessories, and services across the globe. NIKE, Inc. (NYSE:NKE) is ranked 4th among the worst performing Dow stocks. On September 28, NIKE, Inc. (NYSE:NKE) announced first quarter results for fiscal year 2024. The company reported a GAAP EPS of $0.94, outperforming estimates by $0.18. Its revenue came in at $12.94 billion, falling short of estimates by $62.09 million.

NIKE, Inc. (NYSE:NKE)’s stock drop is linked to changing consumer behavior, particularly among millennial shoppers who, with the impending restart of student loan payments, have scaled back their spending on clothing and footwear. Instead, they are using their finances for services and experiences.

According to Insider Monkey’s second quarter database, 70 hedge funds were bullish on NIKE, Inc. (NYSE:NKE), in contrast to the preceding quarter when 81 funds had invested in the stock. Terry Smith’s Fundsmith LLP held the largest position in the company, with 6.7 million shares valued at $740.65 million.

ClearBridge Sustainability Leaders Strategy made the following comment about NIKE, Inc. (NYSE:NKE) in its Q2 2023 investor letter:

“Athletic footwear and apparel company NIKE, Inc. (NYSE:NKE), also a beneficiary of pandemic pull-forward demand, lagged primarily around fears about consumer resilience and potential pressure on Nike’s business in a macroeconomic slowdown.”

3. Verizon Communications Inc. (NYSE:VZ)

Year-to-Date Share Price Performance as of October 11: -21.59%

Number of Hedge Fund Holders: 53

Verizon Communications Inc. (NYSE:VZ) delivers communication, technology, information, and entertainment services and products to individuals, businesses, and government organizations all over the world. It is one of the worst performing Dow stocks. Verizon Communications Inc. (NYSE:VZ)’s stock experienced a decline of up to 3.3% on October 6 due to the ongoing rise in interest rates and governmental pressure. Overall, the stock has dropped nearly 22% year-to-date. 

According to Insider Monkey’s second quarter database, 53 hedge funds were bullish on Verizon Communications Inc. (NYSE:VZ), compared to 59 in the previous quarter. Ric Dillon’s Diamond Hill Capital is one of the most prominent shareholders of the company, with 6.7 million shares valued at $249.61 million.

Ariel Global Fund made the following comment about Verizon Communications Inc. (NYSE:VZ) in its Q2 2023 investor letter:

“Global communications and technology leader, Verizon Communications Inc. (NYSE:VZ), also weighed on performance in the period on mixed earnings results. Consolidated revenues came in slightly below expectations, EBITDA was in-line and management reiterated full year 2023 guidance. Although share price action has been weak, we find the company valuation to be compelling and the approximately 7% dividend yield to be both stable and secure. We view Verizon as one of the best positioned telecoms in the world. Looking forward, we expect the free cash flow to grow significantly in the years ahead as Verizon moves past the secular peak in 5G capital spending.”

2. 3M Company (NYSE:MMM)

Year-to-Date Share Price Performance as of October 11: -26.19%

Number of Hedge Fund Holders: 49

3M Company (NYSE:MMM) is one of the worst performing Dow stocks. It offers a variety of technological services in the United States and globally. The company is divided into four segments – Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. At the end of August 2023, S&P Global Ratings downgraded the credit rating of 3M Company (NYSE:MMM) it agreed to pay as much as $6 billion to resolve a legal dispute regarding its Combat Arms earplugs. S&P reduced 3M’s credit rating to BBB+, placing it just three steps above the speculative grade, commonly known as “junk” status. The rating outlook is still negative. S&P mentioned that while the settlement offers some clarity, it also results in an approximate $4 billion increase in adjusted debt. Overall, 3M Company (NYSE:MMM) stock has plummeted over 26% year-to-date as of October 11. 

According to Insider Monkey’s second quarter database, 49 hedge funds were bullish on 3M Company (NYSE:MMM), a decrease from 51 funds in the last quarter. Cliff Asness’ AQR Capital Management is a significant position holder in the company, with 1.62 million shares worth $161.82 million.

Here is what Mayar Capital has to say about 3M Company (NYSE:MMM) in its Q2 2022 investor letter:

“We also bought back into 3M (NYSE:MMM) as the stock reached attractive levels. We’d sold our shares in 3M last year when the price exceeded our estimated fair value, and as better opportunities to invest in presented themselves at the time. Nonetheless, we’ve always liked this business with its diversified revenues, its R&D leadership and its stable margins.”

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.”

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