2024: A Year of Mixed Fortune for the S&P 500 📈
This year, the S&P 500 is expected to showcase significant gains, illustrating a strong performance overall. Nevertheless, the upward trajectory is hindered by several notable underperforming stocks. The index is projected to conclude the year with an increase of approximately 23.8%, greatly surpassing the average yearly gain of 11% recorded between 2014 and 2023. However, these profits have not been equally distributed among different sectors: while the communication services sector has soared by over 40%, the materials sector has faced a decline of nearly 2%. This disparity is further highlighted by the fact that, even as the top gainers have surged over 300% this year, some significant losers have witnessed declines exceeding 60%.
Identifying the Major Underperformers 🚫
Let’s delve into the three worst-performing stocks in the S&P 500 this year, offering insights into their challenges and market reactions.
Walgreens Boots Alliance: A Year of Decline 💔
Leading the list of underperformers is Walgreens Boots Alliance, which has experienced a substantial decline of over 64% year-to-date. This year is set to mark the company’s largest annual drop in its history, coming in as one of eight losing years out of the last nine. The stock suffered notable volatility; for instance, it fell more than 20% within a single day following disappointing third-quarter earnings in June. Conversely, shares saw a significant bounce earlier this month after news surfaced about a potential sale to the private-equity firm Sycamore.
- This year, Walgreens was ousted from the Dow Jones Industrial Average in February after having been a member for six years.
- The average Wall Street analyst has rated the stock as a hold, with a price target indicating a potential bounce of around 5%.
Intel: Struggling in a Competitive Landscape 🔧
Next on the list is Intel, which is poised for a staggering loss of more than 60% this year, marking its worst performance to date. Similar to Walgreens, Intel also faced removal from the Dow, with its spot taken by Nvidia, a standout performer within the index. Intel’s ongoing struggles stem from increased competition from Advanced Micro Devices and slow progress in capturing market share in the realm of artificial intelligence.
- In a recent leadership change, CEO Pat Gelsinger retired earlier this month, leaving the company to navigate its challenges.
- Most analysts view the stock as a hold but predict a potential recovery, with an average price target suggesting a possible upside of over 26% as of the latest market close.
Moderna: Transitioning Beyond the Pandemic 💉
Finally, Moderna ranks closely behind Intel with a decline of over 60%. This year is also poised to be Moderna’s poorest on record, as the market’s interest has shifted from Covid-19 vaccines to more lucrative weight-loss drug manufacturers. In light of diminished sales expectations in Europe and challenges in the U.S. vaccine market, Moderna reduced its full-year sales forecast earlier this year and announced plans to implement cost reductions exceeding $1 billion.
- Analysts have noted concerns regarding market perceptions, particularly influenced by political developments affecting the vaccine sector.
- Despite many analysts maintaining hold ratings, the general price target implies a possible rebound of approximately 87% in share value.
Wrap-Up: A Year of Disparities and Opportunities 🔍
This year has undeniably brought a mixture of highs and lows within the S&P 500. While certain sectors and stocks have achieved remarkable growth, others continue to face significant challenges. Understanding these dynamics can assist you in navigating the market landscape effectively.
For further insights and real-time updates on the market, consider checking reliable finance-related sources.
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