The 3 Worst Dow Stocks This Week

Earnings season is in full swing, and a number of disappointing reports pushed big-name stocks lower this week. Giants IBM (NYSE: IBM  ) , Coca-Cola (NYSE: KO  ) , and McDonald's (NYSE: MCD  ) were the Dow Jones Industrial Average's (INDEX: ^DJI  ) biggest losers, but somehow the index squeaked out a small gain for the week. The Dow was up 15 points, or 0.1%, and the S&P 500 (INDEX: ^GSPC  ) gained 5 points, or 0.3% on the week.

IBM was the most disappointing stock after posting a big earnings miss. Revenue fell 5% to $24.75 billion, which was much worse than expectations. Earnings per share grew slightly to $3.33, but the consensus estimate was $3.61 and the stock fell 6.9% for the week.  The stock fell 6.9%, and its heavy weighting on the Dow held the index back this week.

McDonald's fell 4.1% after reporting an earnings miss as well. Third-quarter same-store-sales growth of 1.4% in Asia, the Middle East, and Africa of 1.4% was disappointing and limited the company's overall growth. Earnings of $1.32 per share were $0.04 short of estimates.  

Coca-Cola dropped 2.2% after reporting that third-quarter revenue that rose just 1% to $12.34 billion. The result was slightly worse than expectations. Coke continued a theme of weak results by multinational companies that were hit by the strong dollar. When the dollar rises, it makes international sales appear lower, and both revenue and income take a hit as a result.  

There was also a strange event this week. Google (Nasdaq: GOOG  ) accidentally released earnings a few hours early on Thursday, sending the market into a panic. Results were much worse than expected, and the stock fell nearly 10% after the release.

If you're looking for some long-term investing ideas, let me invite you to read the Fool's brand-new special report: "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so just click here and get your copy today.

Fool contributor Travis Hoium has no positions in the stocks mentioned above. The Motley Fool owns shares of Google, IBM, and McDonald's. Motley Fool newsletter services recommend Google, IBM, Coca-Cola, and McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 20, 2012, at 5:36 PM, USIRIUS wrote:

    This guy shorts stocks for a living and is basically behaving in a way that borderlines illegal activity. I hope he does not plan to short any KO this week or he will be reported for the SEC.

    Do not belive this bs. The 10,20, & 50 moving averages point to this stock going up on Monday. Do a historical check on when KO when it has been 37 mid and there is always gets a good bounce.

    Worst stock to own this week. That's why everyone will buying this stock this week.

    This stock will be at 39.00 in no time.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2067259, ~/Articles/ArticleHandler.aspx, 12/21/2014 4:00:21 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement