Market Movers: 3 S&P 500 Stocks Struggling to Stay Afloat
The S&P 500 has reached new heights this year, but not all stocks have shared in the success. Several companies have struggled to grow, and their share prices have taken a hit as a result.
Walgreens Boots Alliance: A Pharmacy Giant in Trouble
Walgreens Boots Alliance, the pharmacy retailer, has been one of the worst-performing stocks on the S&P 500. The company faces an uncertain future, having posted losses in three of its past four quarters and cutting its dividend at the start of the year. New CEO Tim Wentworth needs to demonstrate a clear path to profitability and long-term growth for the stock to recover. With Amazon rolling out same-day delivery for prescriptions, Walgreens’ thin margins could be strained further. The company’s healthcare strategy of opening clinics has also failed to pay off, adding to the uncertainty surrounding its future.
Moderna: From Pandemic Darling to Struggling Biotech
Moderna, the COVID-19 vaccine maker, has erased its pandemic-era gains and is back to trading at early 2020 levels. The company’s sales fell by 64% last year, and there’s concern about its ability to generate revenue in the years ahead. While Moderna is developing other drugs and vaccines, including an updated COVID shot and flu vaccines, nothing has excited investors so far. The company’s personalized cancer vaccine, mRNA-4157, which is in phase 3 trials, could be a game-changer if approved. However, cancer treatments have historically had high failure rates, making it a risky bet.
Intel: A Chipmaker Struggling to Find Its Footing
Intel has lost over half its value this year as investors recognize the significant challenges ahead. The company’s revenue has been declining, and its foundry business, while promising, has been unprofitable so far. In the latest quarter, the foundry segment incurred a loss of $5.8 billion, worse than the previous year’s loss. For Intel to turn things around, it needs to demonstrate that its foundry business can be profitable and that there’s significant demand for its chips. Investors are skeptical, and the stock has suffered as a result.
Investor Caution
While these three stocks may seem like contrarian picks, investors should exercise caution. Each company faces significant challenges, and it’s unclear when or if they’ll be able to turn things around. It may be wise to wait on the sidelines until they demonstrate a clear path to profitability and growth.
Leave a Reply