The Dow's Worst-Performing Stocks of 2026. Here's the 1 I'd Buy for 2027.
Not all discounted blue chips are worth buying at their current price. But, one arguably is.
As 2026 draws to a close, the Dow Jones Industrial Average has seen a solid year with an increase of over 9% since the end of 2025. However, not all stocks have performed as well. Among them, McDonald's (MCD) shares have been on a downward trend since the beginning of the year. Persistent inflation had started to erode the purchasing power of its core customers, leading to a significant drop in same-store sales growth in Q2.
Salesforce (CRM), another Dow stock, has also underperformed. Its decline is primarily due to the rise of AI-powered computer-coding platforms, which could potentially replace the need for its customer management solutions. Additionally, expensive acquisitions are weighing on investors' minds.
International Business Machines (IBM) has seen a nearly 14% year-to-date drop. The reason behind this decline is the lack of demand for its specific artificial intelligence solutions, which led to a Q2 sales miss and reduced full-year guidance. Similarly, Boeing (BA) has struggled with design and engineering flaws, causing a 18% drop in its stock price.
Among these Dow stocks, McDonald's appears to be the best buy for the upcoming year. The fast-food chain has taken steps to address the execution inconsistencies and restore its value and affordability leadership. The company has already seen improved results in its third quarter, with adjusted earnings per share up 11% from the year-ago comparison. With a respectable forward-looking dividend yield of just under 3%, McDonald's could be a worthwhile investment for those seeking potential growth and income.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
