5 Worst Performing Dow Stocks YTD

In this article, we discuss 5 worst performing Dow stocks year-to-date. If you want to read our detailed discussion on stock market performance overall, head over to 15 Worst Performing Dow Stocks YTD.

5. The Coca-Cola Company (NYSE:KO)   

Year-to-Date Share Price Performance as of October 11: -14.68%

Number of Hedge Fund Holders: 61

The Coca-Cola Company (NYSE:KO) is one of the worst performing Dow stocks. It is a beverage company that produces, promotes, and sells different kinds of non-alcoholic drinks all around the world. The company offers fizzy soft drinks, different flavors of fizzy drinks, water for sports, coffee, and tea. The Coca-Cola Company (NYSE:KO)’s stock faced a significant decline as investors expressed concerns about the potential impact of increasing demand for weight loss medications on food and beverage sales. This recent downturn adds to the challenges the company has already experienced in 2023, resulting in a decrease of approximately 15% for its shares.

According to Insider Monkey’s second quarter database, 61 hedge funds were bullish on The Coca-Cola Company (NYSE:KO), same as the previous quarter. Warren Buffett’s Berkshire Hathaway is the leading shareholder of the company, with 400 million shares worth approximately $24.1 billion.

Rowan Street Capital made the following comment about The Coca-Cola Company (NYSE:KO) in its Q4 2022 investor letter:

“Let’s take The Coca-Cola Company (NYSE:KO) for example. Its dividend yield is 2.8%, earnings are estimated to grow at only 3.6% rate per year over next 4 years, and its earnings multiple is currently at 24x (based on next year’s forecasted earnings). KO has an anemic growth, so we can argue that paying 24x earnings is not very attractive. Let’s assume that the multiple will stay constant over the next 3-5 years, thus our expected annual returns will be 2.8%+3.6% = 6.4% (that is below the current reported inflation rate and only slightly above the risk-free rate of 4%).”