We recently published a list of 10 Worst Performing Large Cap Stocks to Buy According to Analysts. In this article, we are going to take a look at where Dow Inc. (NYSE:DOW) stands against other worst performing large cap stocks to buy according to analysts.

How Did The Market Perform in Q4 2024?

On January 21, Russell Investment released its Equity Factor report highlighting key trends and performances in global equity markets during the fourth quarter of 2024. The period was marked by significant events, including the conclusion of the US presidential election, which led to heightened expectations of economic growth, deregulation, and lower taxes. These factors contributed to a robust return of 2.7% for the Russell 1000 Index, which tracks the performance of large-cap US companies by market capitalization.

READ ALSO: 10 Best Performing Large Cap Stocks to Buy According to Analysts and 10 Best Small-Cap Growth Stocks to Buy Now.

On the other hand, Developed ex-US Large Cap and Emerging Markets faced declines of 7.4% and 7.8%, respectively. This downturn was attributed to political instability in countries like France and Germany, as well as uncertainty surrounding potential US tariffs. The divergence in performance extended to small-cap stocks as well, with the Russell 2000 Index experiencing a slight increase of 0.3%, while the Developed ex-US Small Cap Index declined by 7.8%.

As per the report, Russell Investments’ global factor portfolios showed varied performance during the quarter. Meanwhile, the Global Large Cap Growth and Momentum portfolios outperformed their benchmarks with excess returns of 2.5% and 1.1%, respectively. On the other hand, the Global Large Cap Low Volatility, Size, Value, and Quality portfolios underperformed, with excess returns ranging from -1.4% to -0.2%. This marked a shift from the previous quarter, where Value and Low Volatility were the top performers.

Moreover, the performance of factor portfolios varied across regions. Meanwhile, the Momentum and Growth factors showed consistent outperformance across US and non-US markets, with Momentum delivering excess returns between +0.1% and +2.1%. However, Growth underperformed in Emerging Markets. On the other hand, the Low Volatility factor underperformed in all regions except Emerging Markets, where it outperformed by +1.0%.

Our Methodology

To curate the list of 10 worst-performing large-cap stocks to buy according to analysts, we used the Finviz stock screener. We aggregated a list of large-cap stocks that have performed negatively over the past year, however, analysts still see upside potential over the next 12 months. Next, we cross-checked the analyst upside potential of each stock from CNN and ranked these stocks in ascending order of analysts’ upside potential. We have also added the number of hedge funds holding each stock, sourced from Insider Monkey’s Q4 2024 database. Please note that the data was collected on February 28th, 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A technician operating state of the art machines manufacturing specialized packaging materials.

Dow Inc. (NYSE:DOW)

Market Capitalization: $25.38 Billion

1-Year Performance: -31.67%

Number of Hedge Fund Holders: 48

Analyst Upside Potential: 15.46%

Dow Inc. (NYSE:DOW) oversees The Dow Chemical Company and its subsidiaries which produces a wide range of materials and chemicals that are used in various industries such as packaging, construction, electronics, and consumer goods.

On February 11, Vincent Andrews from Morgan Stanley maintained a Hold rating on the stock with a target price of $43. The hold rating by the analyst came in as a result of the challenges it faces in the European market. Dow Inc. (NYSE:DOW) is conducting a strategic review of its European polyurethane assets due to high costs and uncertain demand recovery in the region. Andrews suggests that this review might lead to divestments or other strategic actions to optimize operations. Moreover, the company also expects that about 20% of European demand may not return to pre-conflict levels, which necessitates reassessing its assets in the region. Andrew believes this could potentially reduce the company’s mid-cycle EBITDA by approximately $500 million, impacting its overall financial performance. It is one of the worst-performing large-cap stocks to buy according to analysts.

Overall, DOW ranks 8th on our list of worst performing large cap stocks to buy according to analysts. While we acknowledge the potential of DOW to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.