These Are The Best And Worst Performing Stocks Of 2022

Topline

Amid the market’s worst first half of a year in over five decades, tech and cruise line stocks have been among the worst performers in the S&P 500, while energy, healthcare and consumer companies have all seen shares outperform despite rising recession fears.

Key Facts

Surprising Fact:

The vast majority of the S&P 500’s top-performing stocks so far this year are all energy companies, thanks to the surge in oil and gas prices this year. Oil prices have remained above $100 per barrel since peaking at a nearly 14-year high of $139 per barrel in March, shortly after Russia invaded Ukraine. As a result, by far and away the best-performing stock in the S&P 500 is Occidental Petroleum, a favorite of billionaire investor Warren Buffett, who has been adding shares in recent months. Other energy companies have also seen their share prices skyrocket, including the likes of Hess (up 44%), Valero Energy (up 42%), Exxon Mobil (up over 40%) and Halliburton (up 37%).

Tangent:

The best performing stocks outside of the energy sector were healthcare companies, with the likes of Vertex Pharmaceuticals and Bristol-Myers Squibb cracking the top 20 and rising by 27% and 23%, respectively. Some consumer staples also outperformed, including Campbell Soup and Kellogg, both up by around 11% so far this year, as well as Dollar Tree, which has risen nearly 10%. Other notable gainers include brewer Molson Coors (up 18%), video game maker Activision Blizzard (up 16%), healthcare provider Cigna (up 15%) and telecom giant T-Mobile (up 15%). Several aerospace and defense companies have also jumped in 2022 as the U.S. continues to ramp up military aid to Ukraine amid Russia’s ongoing invasion, with the likes of Northropp Grumann rising nearly 20% and Lockheed Martin by 17%.

What To Watch For:

While stocks have struggled for direction since falling into a bear market on June 13, it’s not all doom and gloom on the horizon, according to experts. The stock market took just 161 calendar days to go from its peak in January to a 20% decline threshold—compared to an average of 245 days in past bear markets, according to Sam Stovall, chief investment strategist for CFRA Research. That’s “good news” for stocks, he says, adding, a “quick” descent into a bear market often tends to signal more “shallow” declines ahead rather than “mega-meltdowns”— declines of 40% or more.

Further Reading:

Stocks Are Crashing But History Shows This Bear Market Could Recover Faster Than Others (Forbes)

Carnival Shares Plunge Nearly 15% As Morgan Stanley Warns Of Potential Stock Wipeout (Forbes)

Dow Plunges Nearly 500 Points, Recession Fears Resume As Consumer Confidence Hits New Low (Forbes)

Powell Says Fed Will Continue Hiking Rates Until There Is ‘Compelling Evidence’ That Inflation Is Slowing (Forbes)