Top stocks dragging the Dow Jones Index as it moves into a correction

The Dow Jones Index has moved into a correction after falling by over 10% from its highest point this year and is now hovering at its lowest level since September last year.

Salesforce is the worst-performing Dow Jones Index stock this year 

Salesforce stock price has crashed by 32% this year, making it one of the top laggards in the Dow Jones Index.

It has slumped by 50% from its highest point in December 2024, erasing billions of dollars in value.

Salesforce stock has plunged in the past few months as concerns about its business have continued.

Analysts believe that the company’s business will be disrupted by artificial intelligence (AI) tools.

The most recent results showed that Salesforce's business made over $41.5 billion last year, up by 10% YoY.

Its Agentforce sales and Agentforce service revenues jumped to over $9 billion each.

Agentforce 360 made $8.9 billion, while its marketing and commerce, and integration made $5.4 billion and $6.2 billion, respectively.

Analysts believe the company’s revenue will jump by 11% this year to $46 billion, followed by $50.3 billion in the next financial year. 

Microsoft stock has slumped amid AI spending 

Microsoft stock price has dropped by 26% this year and is down by over 35% from its all-time high.

Its market capitalization has dropped from $3.5 trillion to $2.47 trillion today.

Like Salesforce, Microsoft stock has plunged amid the ongoing fears that AI tools will disrupt some of its business. 

At the same time, there are concerns that the company is spending too much money on the AI business and showing minimal results.

The company expects that its business will spend over $100 billion this year.

UnitedHealth Group 

UnitedHealth Group stock price has crashed by 21% this year, erasing billions of dollars in value.

The stock dropped to $260, down by over 57% from its highest point last year.

It has dropped sharply despite the recent Warren Buffett investment in the company.

UnitedHealth Group's business has come under pressure in the past few years, and analysts expect the company's growth to remain under pressure.

The average estimate is that its revenue will drop by 1.25% this year to $441 billion.

UNH has become an undervalued company as its business has come under pressure.

Its forward price-to-earnings ratio stands at 14, much lower than the five-year average of 20.

Its forward EV-to-EBITDA has moved to 10, down from the five-year average of 14.

International Business Machines (IBM)

IBM stock price has plunged to $236, down from a high of $322 in November last year.

This retreat has led to a market capitalisation from a record high of over $300 billion in October last year to $210 billion.

IBM stock has dropped amid the rising fear that AI tools will disrupt some of its business.

On the positive side, the company’s business is doing modestly well, with its recent results showing that the revenue jumped by 12% in the fourth quarter to $19.7 billion. 

Its software, consulting, and infrastructure revenue jumped by 14%, 3%, and 21%, respectively.

The management expects that its annual revenue will jump by 5% this year, with the free cash flow rising by $1 billion.

The other top laggards in the Dow Jones Index this year are companies like American Express, Nike, Walt Disney, Visa, Boeing, and JPMorgan, which have all dropped by over 10% this year.

On the other hand, the top gainers this year are companies like Chevron, Verizon, Caterpillar, Johnson & Johnson, Honeywell, and Walmart.