Despite recent market turbulence, the stock market has had a relatively good year overall. However, the Dow Jones Industrial Average is only up 2.4% year to date (YTD), lagging behind the Nasdaq Composite and the S&P 500. Some big names within the Dow, including Apple, Nike, and UnitedHealth, are down this year and are within 6% of their 52-week lows.
Apple, a major player in the tech sector, has been underperforming compared to its peers. Concerns about slowing growth, declining sales in key markets like China, and lack of innovation have weighed on the stock. Despite these challenges, Apple remains a strong brand with a solid capital return program, making it an attractive option for value investors.
Nike, on the other hand, saw a temporary earnings spike during the pandemic, leading to a surge in its stock price. However, the growth proved to be short-lived, and the stock has retraced to where it was five years ago. Nike is now focusing on its capital return program and dividend growth, making it a more appealing option for dividend investors.
UnitedHealth, a healthcare sector leader, has also seen a recent sell-off due to lower-than-expected payment rate increases and a cyberattack. However, the company remains a key player in the healthcare sector, with a focus on moderate growth and raising its dividend. With a relatively low P/E ratio, UnitedHealth presents a good value for investors looking for less expensive stocks to buy now.
Overall, despite the challenges faced by these Dow stocks, they all have strong fundamentals and potential for growth, making them worth considering for investors looking to capitalize on the current market conditions.
