Returning 25% in 2024, the S&P 500 delivered a record-breaking year for stock market investors. A resilient global economy coupled with interest rate cuts by the Federal Reserve continues to fuel optimism toward a strong outlook. Investors have also cheered results from the technology sector, where developments in artificial intelligence (AI) are already proving transformative for various industries.
On the other hand, not every company was a winner. Sorting through the biggest losers in the stock market can offer insight into themes to avoid and a reminder of the underlying risk investors need to balance. Here were the five worst-performing stocks in the S&P 500 in 2024.
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Company | Stock Price Performance 2024 |
---|---|
Walgreens Boots Alliance (NASDAQ: WBA) | (64%) |
Intel (NASDAQ: INTC) | (60%) |
Moderna (NASDAQ: MRNA) | (58%) |
Celanese (NYSE: CE) | (55%) |
Estée Lauder (NYSE: EL) | (49%) |
During a strong bull market, lagging stocks typically reflect underlying fundamental weaknesses or company-specific setbacks. This pattern held true for 2024's underperformers, which generally reported weaker-than-expected results.
Intel's shares dropped 60% as the semiconductor pioneer struggled to adapt to a shifting landscape, where AI-driven demand for GPUs from competitors overshadowed its traditional CPU business. Cosmetics leader Estée Lauder lost nearly half its value in 2024, primarily due to exposure to weakness in the Chinese market and soft consumer sentiment. China was also a culprit in the 55% decline in shares of chemicals and specialty materials producer Celanese. The company slashed its dividend as a response to poor financial results.
Perhaps the most interesting name on the list is Walgreens. Despite being the worst performer, with the stock falling 64%, shares of the healthcare giant have rallied sharply in the first few 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, provided the companies show potential for a turnaround. Therefore, keeping these stocks on your radar is worthwhile, as yesterday's losers can become tomorrow's winners.
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*Stock Advisor returns as of January 13, 2025
Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool recommends Moderna and recommends the following options: short February 2025 $27 calls on Intel. The Motley Fool has a disclosure policy.