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Verizon, Intel, Walgreens among worst-performing Dow stocks this summer

Yahoo Finance Live anchors discuss this summer's six worst-performing Dow stocks. (Disclosure: Verizon owns a stake in Yahoo.)

Video Transcript


BRAD SMITH: It's been a volatile summer for the markets. The Dow rallied about 14% from its June 17 lows over the past two months. But then slashed some of those summer gains by almost 6% on Friday after Fed Chair Jerome Powell hawkish comments in Jackson Hole.

But several Dow components struggled even before Friday's selloff. The six stocks that might be wishing summer would end is where we find Sozzi's Take today. Sozz, I'm breaking out the parka.

BRIAN SOZZI: Yeah, well, I have nothing better else to do with my time so I looked at some stocks that have been really under a lot of pressure here going back to the start of summer. So let's run down this list here in rapid fire form.

Verizon, down 15% since the start of summer. And I will say this, to, you know, a lot of the things that tie all these underperforming stocks together is just bad second quarters, bad outlooks, and just concerns about the outlook moving forward. But Verizon down 15%. Its second quarter was a dud. They missed on subscribers, lowered their guidance for the rest of the year.

Intel, of course, a very challenging quarter. A shocking quarter from that company. Also warned on guidance.

Walgreens actually reported in late June, but you're seeing its stock under pressure here. I think because a lot of commentary has been negative in the retail space. You're hearing negative things from a Target and a Walmart. Perhaps, the market's setting up for a bad quarter from Walgreens when it reports in a few weeks.

IBM. Usually nothing good is happening with IBM so I am not surprised to see the stock down 5 and 1/2%. And in case you're wondering, yes, they also had concerning comments about their cash flow when they reported a couple of weeks ago.

J&J down 5.1%. And Caterpillar, too, also under pressure because when they reported, they called out some weakness in their guidance. But also within that China business, which is a very key business for them overall.

And again, some of the things that tie up here is bad guidance, bad commentary, macroeconomic uncertainty. You put all things together and the market is just not liking these six Dow stocks.

BRAD SMITH: Yeah, addressable market on the PC side, especially hitting Intel. We do know that they had called about-- or talked on that. Nvidia, AMD, some of the other chip-making stocks. And Intel, this has been a heavy investment period for them, too--


BRAD SMITH: --even using the-- kind of moving forward of that Chips Act as well, and the investments there to also try and break ground. But that's also meant a lot of money going out the door, too. And so investors, perhaps, pricing that in. So what's the take? What's the takeaway that we should be [INAUDIBLE]?

BRIAN SOZZI: The take is this. And I had the piece overall-- the written piece on yahoofinance.com so check it out. But the take is this.

It's hard to imagine any of these stocks doing that much better in the fall. And there I am, not holding my pumpkin spice latte, but nonetheless, raking leaves like I used to do as a kid at the eight-years-- at eight-years-old because it was just hard labor back in those days.

But nonetheless, look, if there's no catalysts for these companies coming out of the second quarter, how can the stocks go doing better? Intel was a shocking miss. Verizon, the fundamentals have really weakened there. T-Mobile is seen as a winner. It's hard to see those fundamental factors turning positive just because the season changes.

BRAD SMITH: I had to leaf raking business in high school.

BRIAN SOZZI: It was tough.

BRAD SMITH: Yeah, it did pretty well.

BRIAN SOZZI: Those were tough days.