From Boeing To Nike, Jim Cramer Spotlights Dow's Biggest Q1 Flops: 'Nothing Pristine About This List'

In a recent episode of CNBC’s “Mad Money,” host Jim Cramer reviewed the Dow Jones Industrial Average’s (DJIA) five worst-performing stocks in the first quarter of 2024.

What Happened: Cramer, in his analysis, suggested that these stocks could be worth keeping an eye on despite their poor performance, reported CNBC.

He mentioned that while a three-month period is usually insufficient to change a stock’s trajectory, some companies might be laying the groundwork for a turnaround. Cramer then highlighted the five worst-performing stocks, according to FactSet.

Below are five stocks, ranked from worst to best, according to FactSet:

1. Boeing Co BA: Cramer highlighted Boeing’s ongoing struggles, citing recent high-profile malfunctions with several company planes. He expressed concern that Boeing might remain a long-term renter on the poorly performing list.
2. Nike Inc. NKE: With fierce competition in the shoe market, Cramer expressed worry about Nike’s business in the U.S. He suggested that consumers increasingly opt for cheaper alternatives, leading to uncertainty about Nike’s performance until quarterly results are revealed.
3. Intel Corp INTC: Cramer suggested that Intel could see a rally due to favorable year-over-year comparisons, noting a recent increase in price target by UBS.
4. Apple Inc AAPL: Despite short-term challenges such as slowing sales in China and a potential inventory bubble in phones, Cramer emphasized his belief in owning Apple as a long-term investment. He expressed confidence in Apple’s management team and highlighted potential collaborations with Nvidia in the Vision Pro space.
5. UnitedHealth Group Inc. UNH: While facing higher medical costs, UnitedHealth Group’s strong management instills confidence in Cramer, who views it as the most likely among the five to rebound. However, health insurance stocks experienced a setback after the government announced lower-than-expected Medicare Advantage payments for 2025.

“The worst performers in the Dow include stocks that … have both hair and flies on them, in a market that demands a pristine story,” he said. “And there’s nothing pristine about this list; do not kid yourself.”

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Despite the poor performance, Cramer believes these companies could be at a turning point and suggested that investors keep an eye on them.

Why It Matters: Investors are currently contemplating their next moves following a stellar first quarter for the S&P 500, which marked one of the index’s best starts in decades. This has led to a rise in demand for “Black Swan Events.”

Earlier, Cramer highlighted the role of share count reduction behind more than half of the S&P 500 stocks achieving new 52-week highs in the first quarter. This suggests that even struggling companies could see a turnaround with the right strategies.

On a related note, Cramer recently called GameStop Corp GME the “worst company in America” after the video game retailer reported weak financial results for the fourth quarter.

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Photo: Courtesy of Scott Beale on Flickr