General Electric Co. suffered a crowning ignominy Tuesday as overseers of the Dow Jones Industrial Average kicked the beleaguered company out of the stock gauge it has inhabited for more than a century.

Once the world’s most valuable company, GE will be replaced by Walgreens Boots Alliance Inc., the Deerfield, Illinois-based drugstore chain created in a 2014 merger. The change will take effect prior to the open of trading next Tuesday. Down 26 percent, GE is the worst performer in the Dow in 2018, as it was last year, as well.

“It was an issue not of if, but when,” said Quincy Krosby, the chief market strategist at Prudential Financial Inc. “The GE that was dominant in the Dow in the ’70s and ’80s is no longer the same GE.”

The change means the last original Dow member has finally been removed from the benchmark formed in 1896, with GE joining the likes of Distilling & Cattle Feeding, National Lead, Tennessee Coal & Iron and U.S. Rubber. GE briefly left the index, but has been in it continuously since 1907.

“Since then the U.S. economy has changed: consumer, finance, health care and technology companies are more prominent today and the relative importance of industrial companies is less,” said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices. Adding Walgreens makes the index “more representative of the consumer and health care sectors of the U.S. economy.”

GE has also changed. It’s lost almost $140 billion of market value in the last year, spurring a plan to shed $20 billion of assets in a bid to realign businesses and cut costs as the company grapples with debt challenges and flagging demand. Chief Executive Officer John Flannery, who took over for Jeffrey Immelt last year, said in May there is no “quick fix” to the company’s problems.

In Walgreens, the Dow gets something less than an investor darling. The stock fell in both 2016 and 2017 and is down another 11 percent since December as the chain dealt with the competitive pressures plaguing most of the retail industry. One positive was probably its stock price: at around $65, it won’t distort the Dow, whose members are weighted according to price rather than market capitalization.

The Dow’s weighting methodology effectively rules out inclusion of several of the largest companies in the world, among them Google parent Alphabet Inc. and Inc., whose shares trade above $1,000. It may also be a mark against another technology company, Facebook Inc., which has occasionally been mentioned as a Dow candidate.

Tuesday’s switch de-emphasizes industrial companies in the Dow, currently the biggest industry group in the index at 23 percent of its value, according to data compiled by Bloomberg. Walgreens is categorized as a consumer-staples company, a group that now only makes up 5.7 percent of the Dow. Health-care companies are 13 percent.

According to the index manager’s website, the Dow favors a company that “has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors.” It also seeks to maintain “adequate” sector representation.

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