Coca-Cola and Johnson & Johnson are a few of the standout exceptions to this yr’s market rally, proving to be among the many greatest losers within the Dow Jones Industrial Common this yr. The Dow, which consists of 30 blue-chip firms, has climbed this yr amid a broader market rally buoyed by optimism that rates of interest will come down in 2024. The index has simply notched an eight-week successful streak and is up roughly 13% this yr. On this quarter alone, the 30-stock Dow is up almost 12%. Utilizing the CNBC Professional Inventory Screener Instrument , we regarded for Dow shares with the worst efficiency in 2023. Under is the total record of laggards and what analysts must say about them. Buyers are bullish on Johnson & Johnson, giving the pharmaceutical and medtech big a consensus purchase score and 12.8% projected upside over the subsequent yr. Shares are down greater than 11% for the yr. In July, a U.S. decide blocked the corporate’s second try and resolve tens of hundreds of talc-related lawsuits. Nonetheless, Johnson & Johnson topped quarterly earnings and income estimates in October. The corporate had additionally lifted its full-year steerage, reporting a rise in its pharmaceutical gross sales and medical units enterprise. Earlier this month, Citi analyst Joanne Wuensch reiterated a purchase score on Johnson & Johnson, noting that “in its new formation the company and management are focused on striking a path forward and delivering best-in-class products and financial delivery.” Shares of Walgreens Boots Alliance sunk about 29% this yr, making the pharmacy chain operator the most important decliner of the Dow in 2023. In October, the corporate supplied smooth steerage on its revenue and posted fiscal fourth-quarter earnings that got here up quick towards the Avenue’s expectations as demand for Covid vaccines and checks slide. Nonetheless, shares have gained almost 20% within the fourth quarter. Walgreens in mid-October introduced aggressive plans to avoid wasting $1 billion in prices over the subsequent yr. The appointment of Tim Wentworth as Walgreens’ new chief government officer was additionally met with optimism. Analysts have a consensus maintain score on the inventory, per CNBC’s screener device. HSBC this month initiated protection of Walgreens as maintain. “Overcoming near-term operational challenges could unlock incredible value, but the significant risks keep us on the sidelines on Walgreens shares,” wrote analyst Daniela Bretthauer. Coca-Cola is one other Dow struggler, however analysts are nonetheless optimistic that shares can soar greater than 11%. They maintain a consensus purchase score on the inventory, in line with the CNBC screener device. Shares of the smooth drinks producer have declined greater than 8% in 2023. For the next yr, Coke mentioned it’s anticipating a mid single-digit headwind from forex. JPMorgan named Coca-Cola a prime inventory within the drinks sector. Analyst Andrea Teixeira mentioned on Dec. 19 that the agency is cautiously optimistic on most U.S. drinks in 2024 given extra balanced topline progress between items and pricing, potential profitability enhancements and sooner worldwide progress. Different Dow losers embody sports activities attire retailer Nike , oil and gasoline firm Chevron , which has the best projected upside of the record, in addition to telecommunications big Verizon . – CNBC’s Michael Bloom contributed reporting.
