January’s Worst Dow Stocks: The Boeing Company (BA), UnitedHealth Group Inc. (UNH), Alcoa Inc. (AA)

Page 1 of 2

It’s been an explosive start to the year for the Dow Jones Industrial Average . Despite all the fears in December over slowing economic growth and the fiscal cliff, the Dow has soared to a gain of more than 3.3% over the course of January to approach new all-time highs.

That doesn’t mean every stock on the Dow has had a great start to the year, however. Two big names on the blue-chip index have failed to capitalize on the bullish run. Let’s see which Dow stocks couldn’t keep pace with the index last month.

The Boeing Company (NYSE:BA)

January’s flawed five
Surprisingly, January’s worst Dow member was 2012′s best blue chip. Despite gaining more than 100% last year, Bank of America Corp (NYSE:BAC) couldn’t keep up the optimism, as shares fell 2.5% in January. The slight contraction in the U.S. economy certainly didn’t help bank stocks earlier this week, and B of A’s earnings contributed to the disappointment. While most analysts had expected a bad quarter, investors still shrank away from the massive blow that B of A’s mortgage business dealt to revenue and profit.

Not to miss out on the losses, The Boeing Company (NYSE:BA)‘s stock also fell in January, down 2% thanks to the problems of the now-infamous 787 Dreamliner earlier in the month. Investors fled the aerospace giant’s shares at the first sign of trouble, but things have progressively gotten worse since then. Now, with investigators pouring over data regarding the plane’s faults, the aircraft fleet’s grounding could go on for months — not what Boeing or its investors wanted to hear about the company’s newest jet. Don’t expect any sort of stability from this stock as the saga goes on; bits of news will likely be enough to send shares bouncing wildly in either direction.

Bank of America and Boeing were the only two Dow stocks to record losses during the first month of 2013, but several other Dow members underperformed the index at large. UnitedHealth Group Inc. (NYSE:UNH)‘s stock managed to rise just 1.8% to rank as the Dow’s third-worst member in January. The company released a decent earnings report in which it grew revenue by more than 11% last quarter while keeping costs down — yet shares fell anyway. Still, with the company looking to increase its stake in Brazilian insurer Amil Participacoes in the first half of this year and adapting fairly well to the new insurer rules from Obamacare, don’t expect UnitedHealth to stay sluggish for too long.

Alcoa Inc. (NYSE:AA) and Verizon Communications Inc. (NYSE:VZ) round out the worst five stocks of the Dow in January, with shares gaining just 1.8% and 2%, respectively, for the month. No investor can complain about that, but with some of the Dow’s other members absolutely crushing the past month (including a stock I wouldn’t recommend to anybody, Hewlett-Packard Company (NYSE:HPQ), which gained nearly 16% in January), Alcoa and Verizon’s gains don’t seem so substantial.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!