| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| $48.37 | 358.27B | 3.41 | 2.33% | Financial Services | 213,000 | 3 minutes ago | |||
 Pfizer, Inc. PFE | $25.38 | 144.27B | 1.89 | 6.79% | Healthcare | 81,000 | 3 minutes ago | ||
| $159.54 | 373.70B | 6.51 | 2.67% | Consumer Defensive | 108,000 | 3 minutes ago | |||
| $70.69 | 304.23B | 2.82 | 2.91% | Consumer Defensive | 69,700 | 3 minutes ago |
In investment, where fortunes can change with the blink of an eye, last week was a roller-coaster for the **Dow Jones Industrial Average (DJIA)**. Despite a holiday-shortened trading week, fears and anxieties materialized as the market saw significant volatility, with late-day declines driving the negative performance. It’s vital to dig into these developments because understanding the downturns in high-yield blue-chip stocks is instrumental for making informed investment decisions.
Dramatic Movements: The Big Picture
The Dow Jones lost a notable 1.22% last week, despite some positive trading days. This trend is telling, especially when juxtaposed with the stellar performance of **[Bank of America](https://themarketmonitors.com/stock/quote/BAC/)** (**BAC**). Amid the turbulence, **[Bank of America](https://themarketmonitors.com/stock/quote/BAC/)** recorded a 3.17% gain, starkly contrasting with the sharp declines of **[Pfizer](https://themarketmonitors.com/stock/quote/PFE/)**, **[Procter & Gamble](https://themarketmonitors.com/stock/quote/PG/)**, and **[Coca-Cola](https://themarketmonitors.com/stock/quote/KO/)**. Here’s a look at the details:
Editor's Note: Analysis and insight for this article were originally sourced sourced from our friends at The Motley Fool
Bank of America (BAC): Riding the Wave with a 3.17% Jump!
Performance: +3.17%
Reasons for Success: Despite lingering issues from its Countrywide acquisition, **[Bank of America](https://themarketmonitors.com/stock/quote/BAC/)** has been bolstered by rising interest rates which help widen profit margins on low-risk transactions. The spread between borrowing and lending rates is crucial for the bank’s profitability. With rates climbing, the spread is widening, allowing **[Bank of America](https://themarketmonitors.com/stock/quote/BAC/)** to net greater profits on basic, low-risk banking transactions. This macroeconomic trend presents **BAC** as a potentially lucrative investment in a rising rate environment. The juxtaposition of **[Bank of America’s](https://themarketmonitors.com/stock/quote/BAC/)** success against broader market declines highlights a strategic pick that defies general trends.
Why It’s a Good Investment: Understanding why **[Bank of America](https://themarketmonitors.com/stock/quote/BAC/)** succeeded last week can provide crucial lessons. Investors saw an opportunity rather than a risk, supported by the dynamics of interest rate adjustments. For those scouring for resilient stocks amidst volatility, **BAC**’s performance could indicate underlying strengths unseen in more turbulent sectors.
Analyst Ratings:
| Information | Value |
| Consensus Rating | Strong Buy |
| Average Price Target | $41.70 |
| Current Price | $43.98 |
| Potential Gain | 0.26% |
| Number of Analyst Ratings | 34 |
| Strong Buy | 14 |
| Buy | 18 |
| Hold | 10 |
| Sell | 1 |
| Strong Sell | 0 |
Summary of Analyst Outlook:
The majority of analysts recommend a Strong Buy for **[Bank of America](https://themarketmonitors.com/stock/quote/BAC/)** (**BAC**), suggesting a positive outlook. The current strong buy ratings exceed the hold and sell ratings, indicating strong investor confidence. The analysts’ average price target of $41.70 implies a potential gain of 0.26% based on the current price of $43.98.
Pfizer (PFE): Triple Threat Leads to a Sharp Decline
Performance: -6.23%
Reasons for Decline:
- Broad sector decline in healthcare stocks, steered by UnitedHealth’s losses.
- Analyst downgrade from SunTrust, lowering the 12-month price target to $27 per share.
- Rising interest rates pulling investors towards risk-free bonds, comparable to **[Pfizer](https://themarketmonitors.com/stock/quote/PFE/)**’s dividend yield.
**[Pfizer](https://themarketmonitors.com/stock/quote/PFE/)** experienced a trifecta of challenges last week, putting significant pressure on its stock price. The healthcare sector overall had a rough week, influenced largely by UnitedHealth’s performance, which saw a 3.14% loss. Adding to **[Pfizer](https://themarketmonitors.com/stock/quote/PFE/)**’s woes was an analyst downgrade from SunTrust, which set a lowered price target of $27 per share. The final blow came from the rising interest rates. Stable, high-yielding blue-chip stocks like **[Pfizer](https://themarketmonitors.com/stock/quote/PFE/)** became less attractive compared to risk-free Treasury bonds, which started offering yields nearly identical to **[Pfizer](https://themarketmonitors.com/stock/quote/PFE/)**’s 3.3% dividend. This broader market trend of shifting towards safer assets affected multiple Dow components.
Why It’s a Good Investment: Despite these short-term hurdles, **[Pfizer](https://themarketmonitors.com/stock/quote/PFE/)** remains a dividend-paying blue-chip stock with robust long-term prospects. The healthcare giant’s defensive characteristics and steady income potential make it an anchor in any portfolio. Investors should note **[Pfizer](https://themarketmonitors.com/stock/quote/PFE/)**’s momentary decline as a reflection of external pressures rather than internal failings. This understanding positions **[Pfizer](https://themarketmonitors.com/stock/quote/PFE/)** as a dependable long-term investment, particularly attractive for those prioritizing defensive stocks with potential for future stability.
Analyst Ratings:
| Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
| Moderate Buy | $33.83 | $27.83 | 16.98% | 15 |
Analyst Outlook Summary:
Analysts are generally optimistic about **[Pfizer](https://themarketmonitors.com/stock/quote/PFE/)**’s future growth. The consensus rating is a Moderate Buy, indicating that a majority of analysts recommend buying the stock. The average price target suggests a potential upside of 16.98% from the current price. Analysts estimate a good chance of beating earnings estimates, with **[Pfizer](https://themarketmonitors.com/stock/quote/PFE/)** having achieved earnings surprises 75% of the time in the past year.
Procter & Gamble (PG): Market Shivers Amid Managerial Shake-Up
Performance: -6.25%
Reasons for Decline:
- Profit-taking by short-term investors after a rally driven by the return of former CEO A.G. Lafley.
- Structural changes, with the company dividing into four operating divisions, creating investor uncertainty and concerns about potential increased costs.
**[Procter & Gamble](https://themarketmonitors.com/stock/quote/PG/)**’s sharp decline last week was its most significant one-week drop in 2013, surpassing the 5.31% decrease experienced the last week of April. Several factors fueled this decline. Following a rally spurred by the return of former CEO A.G. Lafley, short-term investors might be cashing in their profits. Further compounding this was news of significant managerial changes—dividing **[P&G](https://themarketmonitors.com/stock/quote/PG/)** into four operating divisions, each to be headed by its own leader reporting to Lafley. While this restructuring aims to streamline operations, it has stirred investor uncertainty and speculation about increased operational costs.
Why It’s a Good Investment: **[Procter & Gamble](https://themarketmonitors.com/stock/quote/PG/)**’s market position remains incredibly strong. Recent managerial changes herald potential operational improvements and efficiencies. As a consumer staples giant, **[P&G](https://themarketmonitors.com/stock/quote/PG/)** is an ideal holding for risk-averse investors. The stark reality of **[P&G](https://themarketmonitors.com/stock/quote/PG/)**’s stock movement underscores the need to look beyond the immediate numbers. Investor apprehensions following structural changes often give way to optimism as the benefits of such adjustments become clear. Therefore, a strategic view is essential when assessing **[P&G](https://themarketmonitors.com/stock/quote/PG/)**’s future potential.
Analyst Ratings:
| Metric | Value |
| Consensus Rating | Moderate Buy |
| Average Price Target | $172.86 |
| Current Price | $166.61 |
| Potential Gain (Upside) | 3.75% |
| Number of Ratings | 20 Buy, 9 Hold, 0 Sell |
Summary of Analyst Outlook:
Analysts are generally optimistic about **[Procter & Gamble](https://themarketmonitors.com/stock/quote/PG/)** (**PG**) stock performance. The company has a moderate buy consensus rating, indicating a positive but not overly bullish market sentiment. The average price target of $172.86 suggests a potential increase of 3.75% from the current price. This optimism is supported by the high number of buy ratings, with only a few hold ratings and no sell ratings.
Coca-Cola (KO): Global Setbacks and Domestic Health Concerns Hit Hard
Performance: -5.32%
Reasons for Decline:
- Slower-than-expected GDP growth in China, one of **[Coca-Cola](https://themarketmonitors.com/stock/quote/KO/)**’s critical international markets.
- Domestic challenges from health-conscious movements impacting sugary drink sales.
- Operational setbacks in Venezuela, slashing expected revenue by roughly 15%.
**[Coca-Cola](https://themarketmonitors.com/stock/quote/KO/)** faced a trio of headwinds last week. Internationally, slower GDP growth in China dampened its potential growth in one of its crucial markets. Domestically, the growing health consciousness aimed at reducing obesity continued to impact sugary drink sales negatively. Additionally, a worker strike at a Venezuelan bottling plant cut expected revenue by roughly 15%, compounding the company’s woes.
Why It’s a Good Investment: Despite these issues, **[Coca-Cola](https://themarketmonitors.com/stock/quote/KO/)**’s global leadership in the beverage industry and its strong brand loyalty cannot be underestimated. The company’s ability to navigate current headwinds could spring a rebound, presenting a prime buying opportunity. **[Coca-Cola](https://themarketmonitors.com/stock/quote/KO/)**’s battle against a trifecta of international and domestic challenges is a lesson in the complex factors affecting stock performance. Investors must consider not only the immediate setbacks but also the company’s resilience and market position.
Analyst Ratings:
| Metric | Value |
| Consensus Rating | Strong Buy |
| Average Price Target | $69.50 |
| Current Price | $63.70 |
| Potential Gain | 9.11% |
| Number of Ratings | 17 |
Summary of Analyst Outlook:
Analysts generally recommend **[Coca-Cola](https://themarketmonitors.com/stock/quote/KO/)** (**KO**) with a strong buy consensus rating. The average price target suggests a potential increase of 9.11% from the current price of $63.70. This is based on 17 analyst ratings, with 14 recommending a buy, 2 holding neutral, and 0 recommending a sell.
Spotlight on Other Dow Losers
While **[Pfizer](https://themarketmonitors.com/stock/quote/PFE/)**, **[Procter & Gamble](https://themarketmonitors.com/stock/quote/PG/)**, and **[Coca-Cola](https://themarketmonitors.com/stock/quote/KO/)** headline last week’s losers, several other Dow giants also faced declines:
- AT&T: -4.78%
- Caterpillar: -0.47%
- ExxonMobil: -0.96%
- Home Depot: -0.41%
- Johnson & Johnson: -3.04%
- McDonald’s: -3.70%
- Merck: -0.97%
- United Technologies: -0.14%
- Verizon: -5.66%
- Wal-Mart: -3.19%
- Walt Disney: -3.68%
- General Electric: -0.89%
- Chevron: -2.15%
- Boeing: -0.98%
Understanding the specific pressures each company faced can create nuanced insights for navigating market volatility. Many were impacted by rising interest rates driving investors toward bonds, a trend that underscores the complexity of market forces.
Each stock’s journey last week offers a unique story of opportunity masked by short-term turbulence. The vigilant investor can glean powerful insights, turning potential downturns into strategic buying opportunities. Pay close attention, as the lessons from last week could be the guiding stars for your next successful investment.