The Nasdaq Composite Index has skyrocketed more than 30% so far this year, and the S&P 500 is up close to 20%. Meanwhile, the Dow Jones Industrial Average has gained less than 5%.

Last month was especially troublesome for the blue chip index. But problems often present opportunities. Is it time to buy the Dow Jones' three worst-performing August stocks?

1. Walgreens Boots Alliance 

Walgreens Boots Alliance (WBA -2.28%) shares fell more than 14% in August. This only added to investors' misery. The pharmacy stock sank 28% last year and had already tumbled close to 20% year to date by the end of July.

There wasn't just one factor behind Walgreens' continued decline last month. Instead, it was a combination of several things. 

Investors were already disappointed by Walgreens' quarterly update on June 27, 2023, where the company slashed its full-year earnings guidance. Walgreens is still paying billions of dollars to settle opioid-related litigation. It's sold off major blocks of its interest in AmerisourceBergen to pay down debt. 

Over the last few weeks, Walgreens has also experienced musical chairs in its executive ranks. The company announced the departure of its CFO in late July. Rosalind Brewer stepped down as CEO as of Aug. 31, 2023. 

2. Goldman Sachs

What goes up can come down, and Goldman Sachs (GS 1.25%) is a case in point. It ranked among the Dow's biggest winners in July. One month later, though, Goldman Sachs became one of the index's biggest losers with a decline of 8%.

Many bank stocks fell in August. Goldman Sachs actually wasn't the worst performer in the group. For example, Bank of America and Citigroup experienced steeper downturns. However, those stocks aren't members of the Dow Jones, while Goldman Sachs is.

Goldman Sachs also received a lot of bad publicity in recent weeks about its CEO, David Solomon. The Economist ran a story headlined, "Goldman Sachs Has a David Solomon Problem." The New York Times wrote that the CEO "is stuck, without a lifeline." Solomon has been criticized for ill-advised strategic moves, intercompany squabbles, and an unlikable personality. 

3. Nike

The tagline "Just do it" surely didn't mean to perform dismally while the overall market soared. Unfortunately, that's what Nike (NKE -0.67%) has done so far this year. The giant apparel and shoe company added to its woes with a 7% tumble in August.

Nike's decline last month wasn't all its own fault. The stock dropped in part because large specialty athletic retailer Foot Locker announced disappointing second-quarter results on Aug. 23, 2023.

Foot Locker reported "a softening in trends in July" in an already challenging market. This might not bode well for Nike's next quarterly update.

Time to buy?

Do any of these beaten-down Dow Jones stocks offer something for investors? Yes, all of them do.

Income investors might really like Walgreens Boots Alliance's ultra-high dividend yield of nearly 8.5%. They could also be attracted to Goldman Sachs with its yield of 3.4%.

Both stocks could make the short lists of value investors, as well. Walgreens trades at a forward price-to-earnings ratio of less than 6.2x, while Goldman Sachs' forward earnings multiple is under 8.7x.

Nike could deliver strong growth. Wall Street looks for average annual earnings growth of around 15% over the next five years with 18% growth next year. 

However, the main problem is that there simply are better stocks to buy than any of these three August underperformers. There are more attractive healthcare stocks than Walgreens, stronger bank stocks than Goldman Sachs, and faster-growing consumer stocks than Nike. Investors might not even have to look beyond the Dow Jones Industrial Average to find some of those better candidates.