Return rate in 2024 is 25% S&P 500 Index It’s capped a record year for stock market investors. A dynamic global economy coupled with interest rate cuts from the Federal Reserve continue to fuel optimism about a strong outlook. Investors are also pleased with the performance of the technology sector, where the development of artificial intelligence (AI) has proven to be transformative for various industries.
On the other hand, not every company is a winner. Categorizing the stock market's biggest losers can provide insight into topics to avoid and alert investors to potential risks that need to be balanced. Here are the five worst-performing stocks in the S&P 500 in 2024.
company | Share price performance in 2024 |
---|---|
Walgreens Boots Alliance (NASDAQ: WBA) | (64%) |
Intel (NASDAQ: INTC) | (60%) |
modern (NASDAQ: MRNA) | (58%) |
Celanese (NYSE: CE) | (55%) |
Estee Lauder (NYSE:EL) | (49%) |
Data source: Yahoo! finance.
During strong bull markets, lagging stocks often reflect underlying fundamental weaknesses or company-specific setbacks. This pattern holds true for companies that underperform in 2024, which generally fall short of expectations.
Intel shares fell 60% as the semiconductor pioneer struggled to adapt to a changing landscape in which competitors' artificial intelligence-driven demand for GPUs overshadowed its traditional CPU business. Cosmetics leader Estee Lauder's market value will shrink by nearly half in 2024, mainly due to a weak Chinese market and weak consumer confidence. China is also to blame for a 55% drop in shares of Celanese, a maker of chemicals and specialty materials. The company cut its dividend in response to poor financial results.
Perhaps the most interesting name on the list is Walgreens. Although the healthcare giant's shares are down 64%, making it the worst-performing stock, the company's shares have surged in the first weeks of the new year after a recent company update showed signs of an improving outlook.
Market volatility can sometimes present buying opportunities in beaten-down stocks, if those companies show the potential to turn a profit. Therefore, it pays to keep an eye on these stocks because yesterday's losers could become tomorrow's winners.
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Dan Victor has no position in any of the stocks mentioned. The Motley Fool has a position and recommendation on Intel. The Motley Fool recommends Moderna and recommends the following options: Short February 2025 $27 Intel calls. The Motley Fool has a disclosure policy.
The 5 Worst-Performing Stocks in the S&P 500 in 2024 Originally published by The Motley Fool