Investing

5 Top (and Bottom) Dow Performers in 2019

The Dow’s worst performers last year included two industrials, one health care company and one retailer, along with the already mentioned energy company. Here are the five worst-performing Dow stocks in 2019.

Exxon Mobil

The Dow Jones U.S. oil and gas index has gained 5.62% in 2019, more than twice as much as has Exxon Mobil Corp. (NYSE: XOM) stock, with its gain of about 2.5%. There’s no secret about this: low crude oil prices, high extraction costs and, most troublesome and therefore the most likely to threaten the industry for a long time, declining demand for hydrocarbons. The stock trades at around $70, about $8.50 below its price target of $78.47, for an implied upside of 12.1%. 2020 could be better, with production beginning at the company’s fields offshore of Guyana and production in the Permian basin ramping up.

Boeing

The amazing thing about Boeing Co.’s (NYSE: BA) year is that even though the company hasn’t sold a single 737 Max passenger jet since mid-April, and it continues to rack up what are sure to be hefty compensation claims from customers, the stock has actually added about 2.4% since the beginning of the year. That’s more a function of Boeing being one of only two airplane makers in the world that can build commercial passenger jets than it is an indicator of anything else. Customers who may want to cancel orders for the popular Boeing planes put themselves at the end of the queue at Airbus, which already has a four-year backlog. The implied upside the Boeing price target of $366.40, based on Monday’s trading price of around $327, is about 10.7%.

3M

3M Co. (NYSE: MMM) stock has dropped about 7% in 2019, partly due to negative effects from the trade war with China that resulted in earnings misses. Then came the lawsuits related to chemical products the company made in the last half of the 20th century, for which 3M has already taken a $325 million litigation charge. That doesn’t include personal liabilities, which could run into the tens of billions. The stock is trading at about $5 above its price target of $171.44.

Pfizer

The company announced in July that it planned to spin off its Upjohn generic drug unit into a merger with Mylan into a new company called Viatris. Shares dropped about $9.00 over the next six weeks to around $34.00. Only some of that has been recovered. A lot depends on Pfizer’s pipeline of new drugs. As things stand now, the company’s price target is about $2.50 above its current trading price of $39.00. Shares traded at more than $43 before the Upjohn announcement. For the full year, Pfizer Inc. (NYSE: PFE) stock is down 9.9%.

Walgreens

The Dow’s worst-performing stock this year traded down about 14%. Following an initial jolt when it was added to the Dow 30 in June 2018 (replacing GE), Walgreens Boots Alliance Inc. (NYSE: WBA) stock sank below $50 in May and remains mired below $60 as 2019 comes to a close. Amazon has made some moves that threaten the pharmacy business, and rumored discussions for a buyout from KKR went nowhere. At around $59, the shares traded about $2.00 above the 12-month consensus price target of $57.11.

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