This year, Dow stocks have been all over the place, prompting concerns from investors and analysts alike. Unlike the other two major U.S. stock indices, the S&P 500 and Nasdaq, which are up by a considerable percentage this year, the Dow 30 continues to perform inconsistently. Judging by their performance this year, it might be time for owners of these stocks to consider selling them before prices tank. 

While not every company in the Dow 30 is performing poorly, a handful are, dragging the rest of the list with them. The poor performance is due to several factors, such as rising inflation, increasing interest rates, and diminishing demand for products. 

These Dow stocks should be let go before they crash and burn before this year closes.

Consumer spending is at an all-time low in markets worldwide, so this issue will likely worsen before it gets better. Here are three Dow stocks to sell before the turn of the new year. 

Salesforce (CRM)

Salesforce (NYSE:CRM) is an American cloud-based software provider based in San Francisco, California. The company is popular for its stack of software products, which focus on customer relationship management and help businesses manage crucial aspects of their operations, such as sales, customer service, marketing automation, e-commerce, analytics, and application development. 

Despite its influence in the cloud software space, Salesforce has endured a tough year financially. According to its quarterly report for the first quarter of the year, the company’s revenue increased by 11% to reach $9.1 billion, while earnings per share (EPS) surged by 45% to $2.24. 

However, it missed its quarterly target for revenue for the first time since 2006, nearly 20 years ago. The news sent the stock flying down by 20%, although it has recovered slightly since then. 

Furthermore, the company has been laying off workers this year. It has laid off 300 people this month alone, adding to the 700 jobs it cut at the start of the year. Just last year, it cut off 10% of its entire workforce.

While Salesforce is not the only technology company to have recently laid off workers, this certainly raises concerns about the company’s short-term profitability. The company does not look like it is heading towards a market recovery, so now might be the best time for investors to sell. 

Walt Disney (DIS)

Walt Disney (NYSE:DIS) is an American mass media and entertainment company based in Burbank, California. It operates through three segments: entertainment, sports, and experiences. It is behind some of the most familiar television shows and movies in history, such as The Lion King, Mickey Mouse, and The Jungle Book. 

Like most Dow stocks, Walt Disney has been all over the place this year. Its stock began the year with a nice rally, which stalled towards the end of the first quarter. It’s been downhill since then, though, and the stock has declined by 22%. 

Moreover, Walt Disney’s stock has begun to lag the market. Its share price has declined by 33% in the last five years, and the company has recently found itself in the middle of a proxy battle. Activist investor Nelson Peltz recently waged a months-long campaign over disagreements concerning management strategies. 

When Mr. Peltz lost the proxy battle, he sold all 30 million shares he owned of Walt Disney’s stock. The sale earned him a profit of $1 billion and further weakened the position of the Disney stock. 

A combination of dwindling share prices and the just-concluded proxy battle places Walt Disney high on the sell list. 

Home Depot (HD)

Home Depot (NYSE:HD) is an American home improvement retailer based in Cobb County, Georgia. The company sells everything related to home improvement, from tools and construction products to appliances and services such as fuel and transportation rentals. It is the largest home improvement retailer in the United States and operates several big-box stores across the country and overseas (Canada and Mexico). 

However, Home Depot has struggled financially this year, thanks to less demand for home improvement and appliances. The combination of rising inflation and high interest rates has reduced consumer spending, significantly reducing the company’s revenue-generating ability. The company’s latest quarterly report shows that net sales decreased by 2.3% to $36.4 billion, while comparable sales decreased by 2.8%. It’s highly unlikely that the company will fix its sales problem as this issue is prevalent in global markets, placing it high on the sell list.

On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.