Is Now the Time to Buy Three of the Worst-performing Stocks in the S&P 500? - Latest Global News

Is Now the Time to Buy Three of the Worst-performing Stocks in the S&P 500?

The S&P 500 (SNPINDEX: ^GSPC) is home to some of the best and most promising stocks you can own in the markets. When stocks in this broad index become available for sale, it could be the best time for investors to consider investing in them. Three S&P 500 stocks that have fallen sharply this year are attracting the attention of bargain hunters: Walgreens Boots Alliance (NASDAQ:WBA), Boeing (NYSE:BA)And Intel (NASDAQ:INTC).

Let’s take a look at why these three S&P 500 stocks are struggling and whether you should consider adding them to your portfolio today.

1. Walgreens Boots Alliance: Down nearly 31% year-to-date

Pharmacy retailer Walgreens wasn’t a bad investment this year alone; The stock has lost two-thirds of its value in the last five years. There are many reasons to be bearish on the stock. Not only has it struggled to grow, but the company’s razor-thin margins also make it difficult to turn a profit. While the company has diversified into healthcare by establishing primary care clinics through its investment in VillageMD, this could only place greater strain on the company and its resources in the future.

Earlier this year, the company cut its dividend to strengthen its financial position. The company is also rumored to be considering selling assets, including its Boots UK pharmacies.

Over the past 12 months, the healthcare company suffered an operating loss of more than $2 billion. And with many challenges ahead, this is a stock I would stay away from, as things can always get much worse for Walgreens and there is no guarantee that things will get better.

2.Boeing: Decrease of almost 31% since the beginning of the year

Boeing posted a nearly identical decline to Walgreens this year. The reasons for his difficulties also go back several years. His planes were plagued by safety concerns. In 2019, the Boeing 737 Max was temporarily grounded after it was involved in several fatal crashes and there were reports of problems with engines, wiring and the flight control computer. Earlier this year, the company made headlines again after a door flew off during a flight. It was later discovered that bolts that were supposed to hold the door in place were missing.

The company’s big theme is trust. Trust the company to deliver high-quality aircraft that airlines and passengers can rely on. With the resignation of CEO Dave Calhoun this year, management changes are coming. If the company significantly improves its quality control, the hope is that the company can regain the trust of all its stakeholders, including investors.

Meanwhile, the company’s financials are disappointing, to say the least. Boeing suffered an operating loss in three of the past four quarters. Revenue fell 8% to $16.6 billion in the first three months of 2024.

The company faces a difficult road ahead, and with a possible decline in travel demand amid a recession, there are plenty of reasons why things could get worse for Boeing. Investors may be better off taking a wait-and-see approach to the stock, as the risk associated with Boeing makes investing in the company a little too risky at this point.

3. Intel: Down 38% year-to-date

The worst-performing stock in the S&P 500 so far is Intel, as the chipmaker’s shares have fallen 38% this year. The technology company is positioning itself as a major player in next-generation chip manufacturing, but that’s not enough to convince investors. CEO Pat Gelsinger says: “We are one of two, maybe three companies in the world that can continue to enable next-generation chip technologies.”

The problem is that producing these chips may not be easy, despite expected strong long-term demand. For the period ended March 30, Intel’s foundry revenue fell 10% year over year to $4.4 billion. And this division also suffered a loss of $2.5 billion.

Investors appear to be doubting the tech company’s ability to be a serious player in next-generation chips amid disappointing financials. But of the three stocks listed here, Intel may be the more interesting controversy as the U.S. needs to reduce its reliance on foreign chipmakers. The US government has agreed to give Intel up to $8.5 billion in grants to boost chip production in the country, as well as another $11 billion in loans.

While Intel faces an uphill battle and is still a risky buy at the moment, it could be a good opponent choice given government support and the need for domestic chip manufacturing capacity.

Should you invest $1,000 in Walgreens Boots Alliance now?

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David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Intel and recommends the following options: long $45 January 2025 calls on Intel and short $47 May 2024 calls on Intel. The Motley Fool has a disclosure policy.

Is now the time to buy three of the worst-performing stocks in the S&P 500? was originally published by The Motley Fool

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