These Were the 5 Worst-Performing Stocks in the Dow Jones Industrial Average in 2024

The Dow Jones Industrial Average (DJIA) is a benchmark for the U.S. stock market, and while it has seen overall growth in 2024, not all of its components have fared well. In fact, some have struggled significantly, with several stocks experiencing substantial declines. Let's take a closer look at the five worst-performing stocks in the DJIA in 2024 and explore the factors contributing to their underperformance, as well as their potential long-term prospects.

1. Boeing (BA): Boeing has had a challenging year, with issues ranging from a mid-flight door panel incident to a workplace culture that led to lax quality controls. In response, Boeing brought in a new CEO, Dave Calhoun, in 2020. Calhoun has been working on a turnaround plan, focusing on improving safety, quality, and operational efficiency. As the company continues to address these issues and regain customer trust, investors may see an improvement in Boeing's stock price. However, a full-fledged turnaround could take years.
2. Nike (NKE): Nike has struggled with declining sales and profits, as well as market share losses to competitors like On Holding and Deckers' Hoka brand. The company's former CEO, John Donahoe, was ousted in 2024, and a new CEO, Elliott Hill, was appointed. Hill, a company veteran, is expected to change strategy and refocus on brand marketing and wholesale relationships with chains like Foot Locker. If these changes lead to improved sales and market share, Nike's stock price could potentially rebound.
3. Merck (MRK): Merck has struggled to find growth beyond Keytruda, a cancer drug, as franchises like HPV vaccine Gardasil and diabetes drug Januvia declined due to Gardasil's weakness in China and competition for Januvia. Keytruda now makes up nearly half of its revenue, but headwinds against other drugs have eaten into profits. Merck's long-term prospects rely on its ability to diversify its revenue streams, develop new drugs, and maintain the success of Keytruda.
4. Johnson & Johnson (JNJ): Johnson & Johnson has faced headwinds associated with lawsuits around its talcum-based products, declining profits due to legal costs, and increased research and development (R&D) expenses. The company's long-term prospects are tied to its ability to resolve the talcum-related lawsuits, maintain its strong brand, and continue innovating in the healthcare sector.
5. Amgen (AMGN): Amgen missed out on cyclical tailwinds that lifted the broad market, faced challenges with MariTide (a weight loss drug linked to bone mineral density loss), and experienced declining revenue from oncology treatments and established products like Enbrel. Amgen's long-term prospects depend on its ability to address the challenges with MariTide, develop new drugs, and maintain its position in the biotechnology sector.

In conclusion, the five worst-performing stocks in the DJIA in 2024 have faced various challenges that contributed to their underperformance. Their long-term prospects will depend on each company's ability to address these challenges, adapt to changing market conditions, and execute on their strategic plans. While these stocks may present attractive opportunities for long-term investors, it's essential to monitor their progress closely and be aware of the specific risks facing each company.