General Electric Exits the Dow as Year’s Worst Performing Stock

June 23, 2018 by Paul Ausick

General Electric Co. (NYSE: GE) shares dropped about 1.9% last week and the company will end its 111-year run as a Dow Jones industrial average stock on Monday as the worst performer for the year to date. GE stock closed 2017 as the worst Dow stock as well. So far in 2018, the shares have lost 25.2%.

The second-worst Dow stock so far this year is 3M Co. (NYSE: MMM), which is down 16.5%. That is followed by Procter & Gamble Co. (NYSE: PG), down 15.8%, Walmart Inc. (NYSE: WMT), down 14.3%, and Johnson & Johnson (NYSE: JNJ), down 12.1%. Of the 30 Dow stocks, 19 are showing a loss to date in 2018.

The Dow struggled through a tough week and dropped more than 500 points over the course of the past week to close at 24,580.89, down about 2%. For the year to date, the telecom sector has tumbled 11.9% to stand out as the equity market’s worst performer.

The biggest news for GE last week was the announcement that it will be dropped from its long-held spot among the Dow Jones industrials and be replaced on the index by Walgreens Boots Alliance Inc. (NASDAQ: WBA) beginning Tuesday morning, June 26.

Now the investors’ focus shifts to what GE will do next. Under new CEO John Flannery, GE has begun selling off bits of the company and has promised to shed some $20 billion in assets as it struggles to return to profitability. But that may not happen quickly. For all its troubles, GE is still a huge company.

GE stock closed at $13.05 on Friday, up about 2.3% for the day, in a 52-week trading range of $12.61 to $27.68. The 12-month consensus price target on the stock is $17.50 and the forward price-to-earnings ratio is 12.43.

Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE

Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here
you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.


Click here
to match with up to 3 financial pros who would be excited to help you make financial decisions.