5 Worst-Performing Stocks in the S&P 500: What Went Wrong and How to Fix It

The S&P 500 has been on a tear this year, but not all stocks have been able to keep up. In fact, some have performed so poorly that they've become the worst performers in the index. Let's take a look at the five worst-performing stocks in the S&P 500 and try to understand what went wrong and how they might be able to turn things around.



1. Walgreens Boots Alliance (WBA):
* Walgreens has been struggling with reimbursement pressure in the prescription-drug business and sluggish consumer retail trends.
* The company's stock fell 22% on Thursday after reporting quarterly results that missed analysts' estimates and announcing various actions to streamline its business, including store closings.
* To improve its stock performance, Walgreens could focus on optimizing its store footprint, expanding its private label offerings, and forming strategic partnerships or acquisitions to diversify its revenue streams.
2. Estée Lauder (EL):
* Estée Lauder has been hurt by exposure to weakness in the Chinese market and soft consumer sentiment.
* The company's stock has lost nearly half its value in 2024, primarily due to a lingering succession issue and an aggressive dividend cut.
* Estée Lauder could focus on streamlining its content libraries, forming strategic partnerships or licensing deals, and implementing cost-cutting measures to improve its financial performance and reduce debt.
3. Dollar Tree (DLTR):
* Dollar Tree's heavily brick-and-mortar retail operations have struggled in an age dominated by online shopping, and inflation's effect on consumer spending has also dinged the company's performance.
* The company's stock fell 48.8% in 2024, as it grappled with these challenges.
* Dollar Tree could consider expanding into new markets, improving its supply chain and inventory management, and exploring strategic acquisitions to drive growth and improve operational efficiency.
4. Intel (INTC):
* Intel has been hurt by declines in PC sales and has struggled to adapt to a shifting landscape in the semiconductor industry.
* The company's stock dropped 60% in 2024, as investors viewed its artificial-intelligence position unfavorably relative to rivals.
* Intel could consider increasing its investment in AI technologies and semiconductor manufacturing, forming strategic acquisitions, and implementing a restructuring plan to reduce costs and improve operational efficiency.
5. Moderna (MRNA):
* Moderna's stock fell 58% in 2024, primarily due to disappointing COVID-19 vaccine sales and an unclear path to future revenue growth.
* Investors have been impatient for the company's next triumph after its Spikevax vaccine became a go-to option during the COVID-19 pandemic's height.
* Moderna could focus on innovating its product offerings, expanding into new markets, and improving its supply chain and inventory management to better meet customer demand and reduce excess inventory.



In conclusion, these five companies have faced significant challenges that have contributed to their poor stock performance. However, by implementing strategic moves tailored to their specific situations, they may be able to turn things around and improve their stock performance. It's essential to stay informed about the specific context and constraints of each company when evaluating these potential strategies.