With three weeks remaining in 2016, just four DJIA stocks are trading down for the year and all but one have a chance to turn positive by the end of the month. With the Dow hitting a new high seemingly every day and now barely 250 points short of 20,000, the odds favor a boost for these laggards.
Most of the action in equity markets is attributed to rising belief that a Trump administration will be much friendlier to corporations and much harsher on regulatory agencies. Financial stocks have been the most rewarded by investors, up more than 22% so far this year with virtually all that gain coming since Trump’s election.
By contrast, healthcare stocks are down nearly 5%, which is actually slightly better than the 8.4% they were down just ahead of Election Day. Consumer discretionary stocks are up about 7.5%, or nearly 10% if we count their pre-election starting point.
Nike Inc. (NYSE: NKE) appears to have no chance to show a share price gain for 2016. The stock trades down more than 17% for the year to date. Shares closed Friday at $51.72, down nearly 0.2% for the day, in a 52-week range of $49.01 to $68.19. The consensus 12-month price target on the stock is $62.85.
The Coca-Cola Co. (NYSE: KO) trades down 2.23% for the year to date. Another consumer stock, Coke has been unable to boost sales as people become more aware of what they are consuming. The company’s stock closed up about 2.5% on Friday at $42.00 in a 52-week range of $39.88 to $47.13. The company announced Friday that a new CEO would take the reins on May 1, 2017. The stock’s 12-month price target is $46.61.
Pfizer Inc. (NYSE: PFE) trades down 1.8% for the year to date and nearly $2 a share below its price on the day after the elections. Traders initially sold off hospital stocks and bought drug companies. Then the ramifications of repealing Obamacare and cutting Medicare and Medicaid began to sink in. Pfizer stock closed up about 2.5% on Friday at $31.70 in a 52-week range of $28.25 to $37.39. The consensus price target is $37.85.
The Walt Disney Co. (NYSE: DIS) is yet another consumer discretionary stock. Shares have gained nearly $10 since the election, and the stock is down just 0.2% for the year to date. At the rate the DJIA is climbing, and with the release next week of a new “Star Wars” movie, Disney should end the year with a small gain. The stock closed up 1.4% on Friday at $104.86 in a 52-week range of $86.25 to $114.75. The consensus 12-month price target is $106.68.