The Worst Dow Stocks for 2014

As we head into the new year, investors should be looking at stocks both to buy and to sell. After a great year on the Dow Jones Industrial Average (DJINDICES: ^DJI  ) , there are a few companies that could be in for a tough 2014.

ExxonMobil (NYSE: XOM  ) is fighting the trend of slowing oil usage in developed countries and has seen higher costs for exploration. Revenue and profit are down in recent years, meaning the stock isn't the safe haven it once was. 

It's been an outstanding year for JPMorgan Chase (NYSE: JPM  ) on the market, but legal settlements have cost the company billions. Eventually, that will catch up to the company, and there's more downside risk in 2014 than upside potential.

Finally, Caterpillar (NYSE: CAT  ) is facing headwinds from China, which appears to be heading toward a building bubble. If building slows in developing countries, so will revenue and profit, which are already volatile at Caterpillar. 

Erin Miller sat down with Fool contributor Travis Hoium to find out more about why he thinks these stocks will underperform in 2014.

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  • Report this Comment On December 26, 2013, at 3:27 PM, wouter28 wrote:

    "It's been an outstanding year for JPMorgan Chase (NYSE: JPM ) on the market, but legal settlements have cost the company billions. Eventually, that will catch up to the company, and there's more downside risk in 2014 than upside potential."

    Why is settling for only a quarter's worth of earnings and removing a big unknown a bad thing for the stock? With an improving economy (increasing loan demand), rising interest rates (increased profit margin) and the stock trading near historic lows from a price to tangible book value perspective, I think you are looking backwards and too focused on scary headlines.

  • Report this Comment On December 26, 2013, at 3:38 PM, Rusty56 wrote:

    Wouter - You are correct, this young author knows not of what he speaks. They have reserved for the 13 billion payout and most payouts in the future will be very small in comparison. I really don't expect many more frankly but the author doesn't understand this obviously.

  • Report this Comment On December 26, 2013, at 3:40 PM, Rusty56 wrote:

    Holum - I'd also like for you to explain the downside risk versus upside potential in 2014???? I don't get it so please explain? Are you expecting more big settlements? Because beyond that thinking, what could possibly be your logic?

  • Report this Comment On December 27, 2013, at 11:21 AM, NickD wrote:

    And I stupidly put 450k in CAT stock....but then again I'm not thinking in years.

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