3 Underperforming Dow Stocks That Wall Street Still Loves
Three of the Dow's worst-performing stocks this year share more than just a red ticker. American Express (AXP) trades at $310.66 vs. a target of $361.57, Nike (NKE) at $42.98 vs. $60.49, and Disney (DIS) at $99.71 vs. $129.67, implying significant upside.
Key Numbers
Three of the Dow Jones Industrial Average's worst performers this year share common traits, yet Wall Street remains bullish. According to a report from 24/7 Wall St., shares of American Express (NYSE: AXP), Nike (NYSE: NKE), and Walt Disney (NYSE: DIS) all trade well below analyst targets, suggesting substantial upside potential.
What These Three Stocks Have in Common
These stocks share three key characteristics:
- Poor performance: All are among the 10 worst Dow stocks this year.
- Low valuation: They trade at a discount to consensus analyst targets.
- Analyst optimism: Despite weak performance, analysts still recommend buying with high price targets.
Price Target Details
| Stock | Current Price | Consensus Target | Implied Upside |
|---|---|---|---|
| American Express (AXP) | $310.66 | $361.57 | 16.4% |
| Nike (NKE) | $42.98 | $60.49 | 40.7% |
| Disney (DIS) | $99.71 | $129.67 | 30.0% |
Analyst Reasoning
Analysts believe these stocks face temporary headwinds, such as weak consumer spending or market shifts, but their fundamentals remain strong. American Express is expected to benefit from increased credit card spending. Nike faces inventory pressures but has a strong brand. Disney is growing its streaming and parks businesses.
What This Means for Investors
Despite the optimism, investors should exercise caution. Weak performance could persist if economic conditions don't improve. However, the wide gap between current prices and analyst targets provides a margin of safety for those confident in these companies' recovery.
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