Weekly Price Change
Johnson & Johnson
Why were these the worst-performing Dow stocks this week?
Guessing what drives stock prices over the short term can oftentimes be a fool's errand. That being said, these three names are naturally insulated from the news that drove so many stocks higher.
Health care and, to a lesser-extent, utility-like services, are often considered to be a "defensive" sector to own when the economy is in rough shape, so it's only natural that more cyclical stocks like banks, commodities, and capital goods will outperform when investors are feeling more cheerful about the economy. Each also faced some less-than-stellar developments.
Johnson & Johnson and Wyeth lost a lawsuit this week to Abbott Labs and Medtronic. The price was two patents for heart devices in the latest in a long line of court battles over stent patents.
Verizon is engaging in court battle of its own against public-interest groups and telco rivals Sprint Nextel
The major concern for Pfizer investors is less macroeconomic and more specific to the company's pipeline. This week saw Pfizer's pipeline efforts delayed again, as the company decided to stop development of an Alzheimer's drug after it showed poor late-stage test results.
The market's unpredictable over the short term, and stocks that are poor performers one week could be the following week's winners. It's important for us to remember to select winning stocks with a long-term perspective. If you're interested in one stock that our chief investment officer picked to crush the market in 2012, we have compiled a special free report for investors to uncover this stock today. Grab yours for free.
Ilan Moscovitz doesn't own shares of any companies mentioned. The Motley Fool owns shares of Johnson & Johnson, Abbott Laboratories, and Medtronic. Motley Fool newsletter services have recommended buying shares of Johnson & Johnson and Abbott Laboratories and creating a diagonal call position in Johnson & Johnson. 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.