Investing

Several Dow Stocks Already Challenging 52-Week Lows!

The stock market is trying to find support after a significant sell-off since the end of 2013. That being said, earnings season has generated very selective winners and losers. Many great stocks have fallen from their peaks, and some Dow Jones Industrial Average stocks are actually challenging their 52-week lows.

24/7 Wall St. has identified the five stocks that were the biggest laggards. These are all within about 2% of their 52-week lows. Even as of last Friday, only four of the 30 Dow components were still showing gains year-to-date in 2014.

We show the catalysts driving the selling and also offer up the consensus price targets for each. Maybe these can recover to those targets, and maybe not. Whenever stocks do start to recover from broad market sell-offs, often it is the stocks that sold off the most that also recover the most.

International Business Machines Corp. (NYSE: IBM) shares were at $172.71, right on their 52-week low of $172.56. IBM was the only Dow stock to decline in 2013, falling 2.1%. The shares are off about 8% this year. Investors have been frustrated with slow growth rates. The consensus price target is $192.67, which would be a 12% gain from current levels

McDonald’s Corp. (NYSE: MCD) shares were trading at around $93.15, about 0.6% above the 52-week low of $92.59, which was hit on Tuesday. They are down nearly 4% this year. The shares have been pressured by flat growth at its U.S. stores, probably a reflection of consumer worries about jobs and the economy. Another issue: intense competition from competitors such as Wendy’s. The consensus target price is $103.30, an 11% premium to the current level.

Chevron Corp. (NYSE: CVX) shares are trading at $111.70. That is about 1% above the 52-week low of $110.54 and down about 10.5% on the year. The second-largest oil company reported a 26% decline in fourth-quarter profits, thanks to low oil prices, and it has seen oil and gas production levels decline. The consensus price target is $130.53, which is 16.7% above the current price.

AT&T Corp. (NYSE: T) shares are at $32.20, about 1.4% above their 52-week low of $119.54. They are off 8.4% on the year. The company is facing pricing pressures from its mobile telephone business because of competition from Verizon, Sprint and T-Mobile US. The consensus target is $36.08, an 11.5% premium over the current price.

Coca-Cola Co. (NYSE: KO) is trading at about $37.20, or 2% above its 52-week low of $36.54, and it is down 9.6% this year. Coca-Cola has a nice 3% dividend yield. Its challenge, however, is to move into new products fast enough to get away from its sugary drink pressure in developed markets, where consumers are looking to be healthier. The consensus target is $45.09, nearly 21% above the current price.

Will lower lows come? Maybe. Shortly before noon EST, the S&P 500 was up more than 0.7% and the Dow was up about 0.5%.

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