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Coca-Cola and Johnson & Johnson are some of the standout exceptions to this year’s market rally, proving to be among the biggest losers in the Dow Jones Industrial Average this year. The Dow, which consists of 30 blue-chip companies, has climbed this year amid a broader market rally buoyed by optimism that interest rates will come down in 2024. The index has just notched an eight-week winning streak and is up roughly 13% this year. In this quarter alone, the 30-stock Dow is up nearly 12%. Using the CNBC Pro Stock Screener Tool , we looked for Dow stocks with the worst performance in 2023. Below is the full list of laggards and what analysts have to say about them. Investors are bullish on Johnson & Johnson, giving the pharmaceutical and medtech giant a consensus buy rating and 12.8% projected upside over the next year. Shares are down more than 11% for the year. In July, a U.S. judge blocked the company’s second attempt to resolve tens of thousands of talc-related lawsuits. However, Johnson & Johnson topped quarterly earnings and revenue estimates in October. The company had also lifted its full-year guidance, reporting an increase in its pharmaceutical sales and medical devices business. Earlier this month, Citi analyst Joanne Wuensch reiterated a buy rating on Johnson & Johnson, noting that “in its new formation the company and management are focused on striking a path forward and delivering best-in-class products and financial delivery.” Shares of Walgreens Boots Alliance sunk about 29% this year, making the pharmacy chain operator the biggest decliner of the Dow in 2023. In October, the company provided soft guidance on its profit and posted fiscal fourth-quarter earnings that came up short against the Street’s expectations as demand for Covid vaccines and tests slide. However, shares have gained nearly 20% in the fourth quarter. Walgreens in mid-October announced aggressive plans to save $1 billion in costs over the next year. The appointment of Tim Wentworth as Walgreens’ new CEO was also met with optimism. Analysts have a consensus hold rating on the stock, per CNBC’s screener tool. HSBC this month initiated coverage of Walgreens as hold. “Overcoming near-term operational challenges could unlock incredible value, but the significant risks keep us on the sidelines on Walgreens shares,” wrote analyst Daniela Bretthauer. Coca-Cola is another Dow struggler, but analysts are still optimistic that shares can jump more than 11%. They hold a consensus buy rating on the stock, according to the CNBC screener tool. Shares of the soft drinks manufacturer have declined more than 8% in 2023. For the following year, Coke said it is expecting a mid-single-digit headwind from currency. JPMorgan named Coca-Cola a top stock in the beverages sector. Analyst Andrea Teixeira said on Dec. 19 that the firm is cautiously optimistic on most U.S. beverages in 2024 given more balanced topline growth between units and pricing, potential profitability improvements and faster international growth. Other Dow losers include sports apparel retailer Nike ; oil and gas company Chevron , which has the highest projected upside of the list; as well as telecommunications giant Verizon . — CNBC’s Michael Bloom contributed reporting.
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