Occidental Petroleum was the top stock in 2022 with a plethora of energy companies listed, while Affirm Holdings led the losers in the more diverse bottom five.
important point
- The overall market, as measured by the Russell 1000 Index, is down 17%.
- Occidental Petroleum, the top stock for 2022, is up 140%.
- Affirm Holdings was the worst, down 87%.
- Some of the top performers are energy companies, boosted by rising oil prices.
- The bottom five companies are those affected by the economic slowdown as interest rates rise.
We tracked the top 5 stocks and the bottom 5 stocks. Russell 1000 Index Using the year-to-date high and low values (YTD) total returns through the market close of 29 November 2022. The Russell 1000 is down 17% over the same period.
Three of the top five were oil and gas companies, which rose from high energy prices after Russia’s invasion of Ukraine in February and OPEC+ cut production later in the year, but have recently fallen again. I’m here. The remaining two are Constellation Energy Corp. (CEG), federal investments in the industry and Signify Health Inc. (SGFYMore) shares rose on pending acquisitions.
Many of the worst-performing stocks in 2022 fell amid accelerating inflation and cautious consumers. Growth stocks have been hit by rising interest rates, declining in value relative to other assets, and the economic slowdown has impacted cyclical stocks such as the bottom five stocks.
Top 5 stocks in 2022
1. Occidental Petroleum Corporation (OXY)
- YTD return: 139.9%
- Sector: Energy
- Market Cap: $62.8B
Occidental Petroleum is an oil and gas Exploration and Production (E&P) The company is also a manufacturer of petrochemicals.It also has some middle class Interest in energy. Occidental reported a profit of $2.5 billion. net sales $9.4 billion in Q3 2022. Net income increased 305% year-over-year and net sales increased 38%.
2. Constellation Energy Corporation (CEG)
- YTD return: 126.9%
- Sector: Utilities
- Market cap: $30.9 billion
Constellation Energy is a power company that primarily uses emission-free energy sources such as solar, wind and nuclear power. We also generate electricity using natural gas. We power homes, businesses, governments and wholesale customers nationwide, producing nearly 10% carbon-free energy nationwide. Constellation posted a net loss of $193 million in the third quarter, compared with net income of $633 million in the year-ago quarter. Earnings increased her 37% to her $6.1 billion.
As one of the largest clean energy companies in the United States, Constellation Energy stands to benefit from President Biden’s Inflation Reduction Act. Signed into law on August 16Constellation and other green energy companies can earn billions in tax incentives, infrastructure support and other perks.
3. Antero Resources (AR)
- YTD return: 111.0%
- Sector: Energy
- Market cap: $11.1 billion
Antero Resources is an E&P company with assets primarily in Ohio and West Virginia. It also holds a significant ownership interest in Antero Midstream, a midstream energy company. Antero reported a net profit of $560 million in its most recent quarter and a loss of $550 million in the year-ago quarter. Net revenue he had was $2.1 billion, almost quadrupling from Q3 2021.
4. Texas Pacific Land Corporation (TPL)
- YTD return: 104.1%
- Sector: Energy
- Market cap: $19.3 billion
Texas Pacific Land generates revenue from land sales, oil and gas royalties, grazing leases, and other businesses. It owns approximately 880,000 acres of land in Texas and various royalty interests for oil and gas development. Texas Pacific reported net income of $130 million and revenue of $191 million in the last quarter, each up 55% year-over-year.
Oil production in the Permian Basin, where Texas Pacific operates, reached record levels this year.
5. Signify Health (SGFY)
- YTD return: 101.3%
- Sector: Healthcare
- Market cap: $6.8 billion
Signify Health provides healthcare payment programs to doctors for governments, employers, healthcare plans, health plans and millions of people. Key customers include the US government’s Medicare program. The company announced in September that it would be acquired by CVS Health for about $8 billion, with the deal expected to close in early 2023. Signify posted a net loss of $225 million in the third quarter, with revenue down 30% to about $140 million.
Stock in the target company in many cases significant increaseAt least in the short term, the acquiring company pays a premium to the pre-acquisition share price to convince shareholders to approve the deal.
Bottom 5 stocks in 2022
1. Affirm Holdings Co., Ltd. (AFRM)
- YTD return: -87.3%
- Sector: Technology
- Market cap: $3.7 billion
Affirm Holdings Fintech A company that provides payment services to both consumers and merchants. The company’s main product is loans offered to e-commerce customers. Affirm’s financial results for its most recent quarter, the first quarter of fiscal year 2023, included a net loss of $251 million, an improvement of $55 million from the same period last year. Earnings he increased 34% to $362 million.
Sustained inflation, rising interest rates and recession fears have weakened demand for discretionary purchases throughout the year. For example, Peloton Interactive Inc. (PTONAffirm’s key partner ) posted losses for several consecutive quarters as the surge in demand for its products during the quarantine period subsided.
2. AppLovin Corp. (APP)
- YTD return: -85.7%
- Sector: Technology
- Market cap: $5 billion
Mobile technology company AppLovin provides software and platforms that help app developers market and monetize their products. Its products include machine learning recommendation engines, cloud infrastructure, and data analytics services. AppLovin reported net income of $24 million for the most recent quarter, up from $100,000 a year earlier. Revenue decreased 2% to $713 million.
Tech stocks plunged in 2022 as rising interest rates dampened the performance of growth stocks. For AppLovin, broader technology trends were compounded by a disappointing outlook and earnings results throughout the year.
3. Wayfair, Inc. (W)
- YTD return: -83.3%
- Sector: Consumer Cyclical
- Market cap: $3.4B
Wayfair operates an e-commerce platform that sells over 33 million household products, including furniture, decorations, homewares and home improvement items. The company’s net loss widened by $205 million to $283 million in the most recent quarter, while revenue fell 9%.
Earnings and stock prices of e-commerce companies like Wayfairr rose as consumers stayed home and shopped online early in the pandemic. Now, many of their shares are down due to easing lockdown restrictions, supply chain concerns, and rising prices. Wayfair’s stock price plummeted in August, when he announced he would cut hundreds of jobs to cut costs.
4. Coinbase Global (COIN)
- YTD return: -82.9%
- Sector: Technology
- Market cap: $9.7 billion
Coinbase, one of the world’s largest cryptocurrency exchanges, We provide a platform to buy and sell Cryptocurrency When Decentralized applicationWe serve retail users, institutions, developers, merchants, and other participants in the crypto market. . The company posted its third consecutive quarter of losses in 2022, with third-quarter revenue down 53% to $576 million.
Prices of cryptocurrencies and related assets Non-Fungible Token (NFT) A sharp drop in 2022 has reduced trading revenue for exchanges such as Coinbase. Supply chain issues have made crypto mining equipment expensive and difficult to obtain, further inhibiting trade. recently, The collapse of the exchange FTX Even the most established cryptocurrency exchanges have lost trust.
5. Twilio Inc. (TWLO)
- YTD return: -82.6%
- Sector: Communication Services
- Market cap: $8.4 billion
Cloud telecommunications company Twilio offers a platform that allows developers to build and manage applications. It provides the infrastructure for developers to operationalize customer engagement and embed voice, messaging, email, and video capabilities into their apps. Twilio’s third quarter loss widened by $225 million to $457 million, while revenue increased 33% to $983 million.
Twilio’s stock price will fall in 2022, struggling to deliver profits. Despite achieving 43% revenue growth in the last 12 months, Twilio’s losses are significant and may outweigh its rapid sales growth.
Conclusion
Most of the top five belonged to the energy industry, as geopolitical factors combined to drive high oil and gas prices. The bottom five were more diverse, but all were growth stocks vulnerable to economic slowdowns and the consequences. escape to quality.
