With a 25% yield in 2024, the S&P 500 recorded a record year for stock market investors. A resilient global economy, coupled with interest rate cuts by the Federal Reserve, continues to fuel optimism towards a strong outlook. Investors have also applauded the results of the technology sector, where advances in artificial intelligence (AI) are already proving transformative for various industries.
On the other hand, not all companies were winners. Ranking the biggest losers in the stock market can offer insight into topics to avoid and a reminder of the underlying risk that investors must balance. Here are the five worst-performing stocks in the S&P 500 in 2024.
|
Company |
Stock price performance in 2024 |
|---|---|
|
Walgreens Boot Alliance (NASDAQ: AMB) |
(64%) |
|
Intel (NASDAQ: INTC) |
(60%) |
|
modern (NASDAQ:mRNA) |
(58%) |
|
celanese (NYSE: CE) |
(55%) |
|
Estee Lauder (NYSE: EL) |
(49%) |
Data source: Yahoo! Finance.
During a strong bull market, lagging stocks often reflect underlying fundamental weaknesses or company-specific setbacks. This pattern held true for the worst-performing countries in 2024, which generally reported weaker than expected results.
Intel shares fell 60% as the semiconductor pioneer struggled to adapt to a changing landscape, where demand for AI-driven GPUs from competitors eclipsed its traditional CPU business. Cosmetics leader Estée Lauder lost almost half its value in 2024, mainly due to exposure to the weak Chinese market and weak consumer sentiment. China was also to blame for the 55% drop in shares of chemicals and specialty materials producer Celanese. The company cut its dividend in response to poor financial results.
Perhaps the most interesting name on the list is Walgreens. Despite being the worst performer, down 64%, the healthcare giant’s shares have rallied strongly in the first weeks of the new year following a recent company update with signs of an improving outlook. .
Market volatility can sometimes present buying opportunities in beaten-down stocks, as long as companies show potential to recover. So it’s worth keeping these stocks on your radar, as yesterday’s losers can become tomorrow’s winners.
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