Walgreens Boots Alliance (WBA) leads the list of the worst Dow Jones stocks of the first quarter, followed by UnitedHealth (UNH), Pfizer (PFE), DowDuPont (DWDP) and Coca-Cola (KO). Their losses come as the overall Dow Jones Industrial Average surged to one of its best first quarters in years.
The Dow Jones stock index jumped 11% in Q1. But shares of Walgreens, UnitedHealth, Pfizer, DowDuPont and Coca-Cola nursed losses year to date, putting them at the bottom of the 30-stock index.
Worst Dow Jones Stocks No. 1: Walgreens
A quarter of strong, albeit choppy stock market performance has passed the beleaguered drugstore chain right by. Walgreens stock lost 7.4% in Q1.
Walgreens seemed on the up and up over the first two months of the quarter, but a comment from CFO James Kehoe sent shares tumbling 6% March 1.
Reimbursement rates face headwinds, Kehoe suggested, raising worries about the company’s ability to meet earnings guidance.
The retailer is slashing $1 billion in costs as it confronts lower store traffic, higher drug costs, and the emergence of Amazon (AMZN) as a pharmacy rival.
In the newest twist, Walgreens plans to sell CBD products, to tap the cannabis and wellness trends.
Walgreens replaced General Electric (GE) on the Dow Jones index last year.
Worst Dow Jones Stocks No. 2: Pfizer
Pfizer stock dropped 2.7% in Q1.
The pharmaceutical giant delivered an earnings beat in January, but weak guidance has weighed on Pfizer stock.
In early March, shares were rocked after Ascendis Pharma (ASND) announced its growth hormone proved superior to a Pfizer drug.
Pfizer and GlaxoSmithKline (GSK) are also in the process of combining their consumer health divisions.
Worst Dow Jones Stocks No. 3: Coca-Cola
The beverage maker fell 1% in Q1.
Coca-Cola isn’t just Coke and sugary soft drinks these days. As it looks to offset crumbling sales of soda, Coca-Cola has grown its stable of coffee-, cannabis- and vitamin-infused drinks.
But Coca-Cola stock suffered its worst one-day loss in years Feb. 14, after giving lackluster guidance as worldwide volume growth slows.
Worst Dow Jones Stocks No. 4: UnitedHealth
UnitedHealth stock dipped 0.75% in Q1.
The nation’s largest health insurer rallied strongly in January after earnings topped expectations.
But managed care stocks have come under pressure since then, as House Democrats introduced a bill to insure all Americans through Medicare.
Top Democratic presidential hopefuls have also lined up in support of Medicare-for-all proposals, which would effectively put private insurance out of business.
Worst Dow Jones Stocks No. 5: DowDuPont
The chemical conglomerate shed 0.3% in Q1. DowDuPont stock crumbled 9% Jan. 31, after the company reported a mixed fourth quarter, and it has yet to recover.
The company emerged in 2017 from the merger of Dow Chemical and DuPont, and a three-way split is imminent. Dow Inc. replaces DowDuPont on the Dow Jones index in April, following the conglomerate’s breakup into three smaller companies.
Fears of a global economic downturn continue to weigh on DowDuPoint. A narrowing of the oil-to-gas spread is a potential headwind for its basic chemicals business.
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