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These Were the 2 Worst-Performing Stocks in the Dow Jones Industrial Average in May 2025
The Motley Foolยท2025-06-14 12:02

Group 1: Dow Jones Index Performance - The Dow Jones Industrial Average increased by 3.9% in May, with 70% of its 30 constituent stocks ending the month positively [1] - The performance of the index was negatively impacted by two healthcare stocks, which were the worst performers in May [1] Group 2: UnitedHealth Group - UnitedHealth Group's shares fell by 26.6% in May due to multiple negative developments, including the sudden replacement of its CEO and the suspension of its earnings outlook for the year [3][5] - A criminal investigation by the Department of Justice for possible Medicare fraud and allegations of compromising patient health by incentivizing nursing homes contributed to the stock's decline [4] - The company aims to return to growth by 2026 but faces challenges in regaining investor confidence, with a year-to-date stock decline of 38% [5] Group 3: Merck - Merck's stock decreased by 9.8% in May, reaching a 52-week low of $73.31 per share, following an executive order from President Trump to lower prescription drug prices [6] - Concerns about Merck's future arose as analysts predicted a significant sales loss once its oncology drug Keytruda loses patent exclusivity, leading to a price target reduction from $115 to $84 per share [7] - Despite these challenges, Merck has a strong pipeline and is committed to dividend growth, currently yielding 3.9% [8]