Market Mayhem: The Top 10 Biggest Stock Losers of 2024

The Stock Market’s Mixed Bag: Some Companies Thriving, Others Struggling

The stock market is having a great year overall, but the same can’t be said for the shares of many individual companies.

The S&P 500’s Record Highs and Lows

The S&P 500, a benchmark index commonly used to measure the performance of the broad U.S. stock market, has hit record high after record high this year as companies posted record earnings and investors anticipated the current lower-interest-rate environment. As of Monday, the index is up more than 20% in 2024.

Familiar Names Having a Rough Go of It

Still, familiar names like Walgreens, Dollar General and Lululemon are having a rough go of it. So understanding how to identify undervalued stocks as opposed to fundamentally flawed stock can be important for the overall health of your portfolio.

The S&P 500’s Worst Stocks in 2024

Howard Silverblatt, a senior index analyst at S&P Dow Jones Indices, provided Money with a list of stocks in the S&P 500 that have performed the worst so far in 2024. Those companies span numerous sectors, from health care to consumer staples to tech, and have done worse than merely underperforming the market.

What Do These Struggling Stocks Mean for Investors?

Seeing how far these stock prices have slid might make you fearful of investing in these companies. Alternatively, if you’re invested in mutual funds and ETFs, you might be concerned about how much exposure your portfolio has to these losing stocks.

Companies Can Suffer from Typical Business Cycles and Market Fluctuations

But don’t panic. It’s important to consider the time frame in which you’re measuring a stock’s performance. Companies can suffer from typical business cycles and market fluctuations, as well as challenges they can overcome with time, says Dave Sekera, chief U.S. market strategist for Morningstar.

Identifying Fundamentally Flawed Companies

Flagging companies that have fallen in price and likely can’t make a comeback is no easy task. An army of savvy Wall Street professionals make it their job to identify which companies will soar and which will plummet, but by no means is it an exact science.

What Investors Should Do Now

While investments that are underperforming the market can sometimes present a strong opportunity for investors, they can also create an equally powerful risk. That’s among the reasons financial advisors often recommend investing in index funds rather than picking and choosing individual stocks.
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