CNBC’s Jim Cramer analyzed the five worst-performing stocks on the Dow Jones Industrial Average during the first quarter and provided insights on which ones investors may want to keep an eye on. He noted that while three months may not be enough time for a stock to pivot, some companies are laying the groundwork for potential improvements. The five worst performers according to FactSet were Boeing, Nike, Intel, Apple, and UnitedHealth Group.
Boeing was at the bottom of the list, with Cramer attributing the poor performance to recent high-profile malfunctions in the company’s planes. He suggested that Boeing might be a “long-term renter on the poorly performing list.” Nike’s struggles were linked to the competitive shoe market and concerns about its U.S. business. Cramer expressed reservations about the company’s performance and stated he would wait for quarterly results to make a judgment.
Intel, on the other hand, might see a rally due to easy comparisons with the previous year, with UBS raising its price target on the stock. Cramer maintained his belief that investors should hold onto Apple rather than trade it, despite short-term challenges like slowing sales in China and a potential inventory bubble. He expressed confidence in Apple’s management team and highlighted excitement about potential collaborations with Nvidia.
UnitedHealth Group was impacted by higher medical costs, but Cramer suggested that it might be the most likely of the five companies to bounce back. He praised the company’s strong management and expressed willingness to buy the stock despite challenges. Health insurance stocks, including UnitedHealth Group, saw a decline in extended trading after the government announced lower-than-expected Medicare Advantage payments for 2025.
Cramer emphasized the importance of understanding that the worst performers on the Dow have challenges and imperfections in a market that demands a pristine story. He cautioned investors not to overlook the complexities of these stocks and advised against assuming a quick turnaround. Despite the struggles faced by these companies, Cramer highlighted potential opportunities for those willing to do thorough research and analysis before making investment decisions.
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