3 Disappointing Blue Chip Stocks That Have Crashed as Much as 87% in 10 Years
Key Takeaways
Normally, a buy-and-hold strategy pays off, and investors expect to see strong gains from their investments. The S&P 500 (^GSPC -0. 79%) has risen by 200% over the past decade,...
Article Overview
Quick insights and key information
5 min read
Estimated completion
investment
Article classification
July 8, 2025
07:32 AM
The Motley Fool
Original publisher
Normally, a buy-and-hold strategy pays off, and investors expect to see strong gains from their investments
The S&P 500 (^GSPC -0. 79%) has risen by 200% over the past decade, and mirroring the index would have enabled you to triple your money
The temptation to pick individual stocks, however, can be too alluring to pass up
But going with individual stocks can add more risk for your portfolio
Three stocks nowhere near the S&P 500's gains over the past 10 years and down well into negative territory are Pfizer (PFE -0. 61%), Kraft Heinz (KHC -2. 18%), and Walgreens Boots Alliance (WBA 0
Here's why these stocks have struggled so badly, what investors can learn from their declines, and if any one of them might be worth in today. (The returns listed are as of July 7. ) Image source: Getty Images
Pfizer: Down 19% Pfizer has been a big name in healthcare for decades, but it has been a largely underwhelming investment over the past 10 years, falling by more than 19% during that time frame
The company has been dealing with patent expirations and needing to innovate to continue growing
Things were looking good a few years ago when its COVID vaccine and pill resulted in its achieving record numbers, with sales topping more than $101 billion in 2022
But with that no longer being a key growth catalyst for the anymore and Pfizer now also worrying government cutbacks on healthcare spending, investors haven't been eager to buy the stock, even despite its modest 18 times earnings multiple or its high yield of more than 7%
There is, however, still hope for Pfizer to turn things around, as the healthcare company has been cutting costs, and it's in the early innings of many acquisitions, including oncology company Seagen, which it acquired in 2023
What investors can learn from Pfizer's uninspiring performance over the past decade is to not get too caught up in market conditions that may only be temporary -- such as a pandemic
Buying at the time when Pfizer's valuation was rising due to strong COVID-related sales would have resulted in deeper stock losses today
I think Pfizer can still make for an underrated buy, especially given its low price tag, as investors may be overly punitive on the for factors out of its control -- uncertainty around healthcare spending, a declining COVID market, etc
But buying the stock will definitely require patience, as a rally may not be coming soon
Kraft Heinz: Down 63% Food and beverage company Kraft has performed even worse than Pfizer over the past decade, losing more than 60% of its value
It has been just over 10 years since Kraft and Heinz merged, and it simply hasn't led to great results
In each of the past four years, Kraft's sales have been stagnant at around $26 billion
The company is struggling to find ways to grow, and it hasn't done a good job of pivoting toward healthier options
While many of its brands are iconic and well known, they're also known for being fairly unhealthy -- including Mac & Cheese
And as consumers focus more on eating better, Kraft's brands simply aren't as as they have been in the past
Investors should take Kraft's struggles in recent years as a reminder that when a is falling behind market trends and consumer preferences, it may be a sign that its ducts may not be as relevant and successful in the future
And that's why I wouldn't buy the stock today, even though it's down so much; there could be much more adversity ahead for Kraft
Walgreens Boots Alliance: Down 87% Undoubtedly, one of the biggest disappointments for investors over the past decade has been Walgreens
While its trusted neighborhood pharmacy may have put it in a great position to offer value and win over local consumers in the past, it has also failed to keep up with changing market conditions
The company operates on low fit margins, which can make it difficult for the to stay out of the red and also pay a dividend, which Walgreens susp earlier this year
With consumers buying more goods online, there arguably isn't as much of a need to have a local Walgreens nearby, whether it's to purchase day-to-day goods or even pick up pharmaceutical items
This is another lesson for investors in the dangers of in a slow-moving that is struggling to keep up with competition
If Walgreens focused more on online dery and drastically reduced its store count to imve on its fit margins, the stock may have not been as horrible of a buy as it has been over the past decade
Although Walgreens stock is up this year, that's because the company is going private, which has driven the stock up to around the purchase price ($11. 45); Walgreens remains a risky to invest in
David Jagielski has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Pfizer
The Motley Fool recommends Kraft Heinz
The Motley Fool has a disclosure policy.
Related Articles
More insights from FinancialBooklet