Two Dow Stocks Underperforming in 2025

The Dow Jones Industrial Average is up 5% in 2025, but two stocks, Salesforce and UnitedHealth Group, have declined sharply. Salesforce has lost 25% of its value due to single-digit revenue growth expectations, while UnitedHealth Group is down 40% due to higher costs and claims and a Department of Justice investigation. Despite being undervalued, investors should exercise caution before investing in these companies.

The Dow Jones Industrial Average (DJIA) is up nearly 5% so far in 2025, with many of its components experiencing significant growth. However, two well-known stocks in the index have seen sharp declines. Salesforce (NYSE: CRM) and UnitedHealth Group (NYSE: UNH) have faced significant challenges, making investors cautious.

Salesforce Faces Growth Concerns

Salesforce, a market darling for years, has seen its stock lose nearly one-quarter of its value in 2025. This decline is attributed to the company's anticipated 7% to 8% revenue growth rate for the fiscal year, the first single-digit growth rate in years. Analysts have expressed concerns that Salesforce's best days may be behind it, with one analyst at Bernstein Research noting that the company is a mature business in a mature market [1].

Salesforce's underperformance is stark when compared to the broader tech market, which has gained over 9% in 2025. The company has faced heightened competition from rivals like Microsoft (MSFT) and Oracle (ORCL), and analysts have questioned its acquisition strategy and future growth momentum [2].

UnitedHealth Group Struggles with Costs and Claims

UnitedHealth Group has had a particularly rough year, with shares down roughly 40% in value. The decline is largely attributed to higher costs and claims, along with a Department of Justice investigation for overbilling. The company's CEO departed in May, following a change in earnings projections by Wall Street analysts. Despite being undervalued at 12.2 times earnings, investors need to be cautious before jumping in, as the situation remains complex and ongoing [1].

Investment Caution Recommended

Both Salesforce and UnitedHealth Group are currently undervalued, but investors should exercise caution before making significant investments. The Motley Fool Stock Advisor team did not include either company in their list of the top 10 stocks to buy now, highlighting the risks associated with these investments [1].

While the Dow Jones Industrial Average has shown strong performance in 2025, the sharp declines in Salesforce and UnitedHealth Group stocks serve as a reminder of the potential risks and challenges that investors may face. It is essential for investors to conduct thorough research and consider all moving pieces before making investment decisions.

References:
[1] https://finance.yahoo.com/news/2-worst-performing-stocks-dow-133404506.html
[2] https://www.benzinga.com/trading-ideas/movers/25/07/46393365/salesforce-underperforms-market-as-growth-concerns-plague-crm-giant