In this article, we'll look at the 10 best performing S&P 500 stocks in 2022. If you want to explore similar stocks, you can also check out.
Morgan Stanley expects S&P 500 to drop 13% in 2022
September 6, Morgan Stanley-Stratege Michael Wilsoncutits market earnings forecast for 2022. Mr. Wilson noted that an economic slowdown is likely to hit equity markets harder than rising inflation and aggressive Federal Reserve policy. Michael Wilson now expects earnings per share growth to slow to 3% in 2023, not expecting a recession. Wilson said Morgan Stanley expects significantly more negative EPS revisions than the bank in the second half of 2022 and into 2023."seen in recent cycles". Michael Wilson predicted that the market will likely bottom out in the fourth quarter of 2022. Furthermore, he expects the S&P 500 to drop to $3,400 in 2022, 13% below its current level and, in the event of a recession, Mr. Wilson expects the S&P 500 to drop to $3,000 by the end of the year. As of September 15, 2022, the S&P 500 is down 18.3% year-to-date.
Stifel expects the S&P 500 to end 2022 at $4,400
Barry Bannister, chief equity strategist at Stifel, appeared on Sept.CNBC "Squawk na rua", where he discussed his market outlook for 2022 and why he sees the S&P 500 at $4,400 for Q4 2022. banner:
“We think the S&P 500 will end the year at $4,400. Obviously, we think a lot of that will happen in the fourth quarter. So we have to go through this summer turmoil... Energy, food, goods and services are the way to offset inflation. Energy, food and commodity prices will fall very quickly, all the leading indicators we have point in that direction. Services are running out. So the question is how much damage the Fed intends to do to the stock market if inflation drops anyway. That's really what the market is trying to determine..."
The stock market is in turmoil right now. While some analysts are bullish, others are equally pessimistic. Where should investors put their money? We've compiled a list of the 10 best performing S&P 500 stocks in 2022 to help investors determine how to sustain or potentially increase their returns in the second half of 2022. The best performing S&P 500 stocks in 2022 include Occidental Petroleum Corporation (NYSE:OXY), Enphase Energy, Inc. (NASDAQ:ENPH) e Marathon Oil Corporation (NYSE:MRO).
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Our methodology
To identify the 10 best-performing S&P 500 stocks in 2022, we looked at the stocks that make up the S&P 500 and analyzed their performance through Sept. 15. We've narrowed our selection down to the companies with the highest returns to date. Along with each stock, we list hedge fund sentiment, analyst ratings, and major shareholders. We rank our picks in ascending order of year-to-date performance.
The 10 best performing S&P 500 stocks in 2022
10. Marathon Petroleum Corporation (NYSE:MPC)
Accumulated profitability up to September 15: 46.42%
Number of hedge fund holders: 50
On August 2, Marathon Petroleum Corporation (NYSE:MPC) announced above-market earnings for the second quarter of fiscal 2022. The company reported earnings per share of $10.61, beating EPS estimates by $ 2.11. The company generated $54.2 billion in revenue, up 81.8% year-over-year, and beat the Wall Street consensus by $10 billion.
Wall Street is bullish on Marathon Petroleum Corporation (NYSE:MPC). On Aug. 3, RBC Capital analyst TJ Schultz raised his price target for Marathon Petroleum Corporation (NYSE:MPC) from $110 to $121, reiterating an outperforming rating for the stock. On Aug. 16, Barclays analyst Theresa Chen raised her price target on Marathon Petroleum Corporation (NYSE:MPC) to $112 from $94, maintaining an overweight position in the stock.
At the end of the second quarter of 2022, 50 hedge funds were long Marathon Petroleum Corporation (NYSE:MPC), holding $2.72 billion in the company's stock. This compares to 43 positions in the previous quarter, with $2.51 billion in holdings. Hedge fund sentiment for equities is positive.
As of June 30thelliott administrationHe owns more than 11 million shares of Marathon Petroleum Corporation (NYSE:MPC) and is the company's majority shareholder. The fund's shares are valued at US$909.6 million.
Together with Occidental Petroleum Corporation (NYSE:OXY), Enphase Energy, Inc. (NASDAQ:ENPH) and Marathon Oil Corporation (NYSE:MRO), Marathon Petroleum Corporation (NYSE:MPC) is among the best performing S&P 500 stocks for 2022 and has gained 46.42% so far this year since September.
9. Corporación Exxon Mobil (NYSE:XOM)
Accumulated profitability up to September 15: 49.24%
Number of hedge fund holders: 72
Exxon Mobil Corporation (NYSE:XOM) stock is rising. As of Sept. 15, the stock has returned 49.24% to investors so far this year. Wall Street sees potential for Exxon Mobil Corporation (NYSE:XOM). On Sept. 6, Morgan Stanley analyst Devin McDermott raised his price target for Exxon Mobil Corporation (NYSE:XOM) to $113 from $107, reaffirming an overweight rating for the stock.
On July 29, Exxon Mobil Corporation (NYSE:XOM) reported above-average earnings for the second quarter of fiscal 2022. The oil giant reported revenue of $115.6 billion, an increase of 70.7% year-over-year and beat market consensus by $3.6 billion. . The company reported earnings per share of $4.14, beating expectations by $0.29.
Exxon Mobil Corporation (NYSE:XOM) is currently trading low relative to earnings. As of Sept. 15, the stock was trading at a P/E of 10 and offered a future dividend yield of 3.60%, sustaining the company with $49.2 billion in free cash flow.
At the end of the second quarter of 2022, 72 hedge funds held shares of Exxon Mobil Corporation (NYSE:XOM) worth $7.4 billion. As of June 30thMember GQGis the largest shareholder in Exxon Mobil Corporation (NYSE:XOM) and owns $4.06 billion in the company's stock.
HereFirst Eagle Investments wrote about Exxon Mobil Corporation (NYSE: XOM) in its Q2 2022 investor letter:
“Integrated oil and gas giantexxonmobilIt performed well in the second quarter as high energy commodity prices continued to support equities. As the largest refiner in the United States, the company has benefited from large "crack spreads", that is, the spread between the cost of crude oil and oil products. Exxon continues to invest in US refining capacity, which has steadily declined across the industry since 2019. We are pleased that Exxon is using its strong cash flows to reduce debt and return cash to shareholders through dividends and buybacks of actions.
8. Devon Power Corporation (NYSE:DVN)
Accumulated profitability up to September 15: 52.47%
Number of hedge fund holders: 57
On Aug. 1, Devon Energy Corporation (NYSE:DVN) reported above-average earnings for the second quarter of fiscal 2022. The company generated $5.6 billion in revenue, a 132.7% increase from the previous year and surpassing Wall Street's expectations. Street at $872.7 million. The company reported earnings per share of $2.59, beating expectations by $0.22. Devon Energy Corporation (NYSE:DVN) stock is up 52.47% year-to-date through Sept. 15.
Wall Street analysts are bullish on Devon Energy Corporation (NYSE:DVN). On Aug. 17, Raymond James analyst John Freeman raised Devon Energy Corporation's (NYSE:DVN) price target to $85 from $80, reiterating a strong Buy rating for the stock. On Aug. 18, Mizuho analyst Vincent Lovaglio raised his price target on Devon Energy Corporation (NYSE:DVN) from $88 to $91, maintaining a Buy rating for the stock.
As of the end of the second quarter of 2022, 57 hedge funds were interested in Devon Energy Corporation (NYSE:DVN), with company stock worth $1.48 billion. As of June 30thMember GQGowns 14.9 million shares of Devon Energy Corporation (NYSE:DVN) and is the company's largest investor.
Herewhat is it?GoodHaven Capital Managementfrom Devon Energy Corporation (NYSE:DVN) in its Q2 2022 Investor Letter:
“Our biggest source of income during the period wasDevon Power Corporation(NYSE:DVN), a position resulting from the acquisition of our holding company WPX Energy in early 2021. We are at a substantial (unrealized) gain on our expenses and are now receiving substantial dividends thanks to a well thought out fixed dividend policy /Devon variables. Energy is a hot sector for investors right now, but we've had significant exposure for a long time. We remember all too well $40 oil, oil contracts with negative prices in the first month, and what it's like to own a company with negative leverage and free cash flow during those periods. Our desire to maintain our increased portfolio exposure to high yielding, growing, reasonably predictable and moderately leveraged companies has led us to historically reduce our exposure to Devon. As recent events and circumstances have changed for the industry and appear to support healthy oil prices, we have decided to retain a sizable position and have recently added to it. With Devon's Q1 dividend rate being widely variable, the stock is performing around 10% and our return on average cost is significantly higher. In addition, we maintain additional exposure to the energy space through our long-term (and successful) investment in Hess Midstream and, less directly, through TerraVest and Berkshire Hathaway's energy investments."
7. ConocoPhillips (NYSE:POLICE OFFICER)
Accumulated profitability up to September 15: 56.65%
Number of hedge fund holders: 71
On September 6, ConocoPhillips (NYSE:COP) announced a collaboration with Japanese utility JERA to develop a hydrogen gas project in the United States that will pave the way for cleaner energy generation. As of September 15, ConocoPhillips (NYSE:COP) is up 56.65% for the year.
As of Sept. 15, the stock has a 12-month PE of 9.53 and offers an expected dividend yield of 1.71%, supporting the company with $15.65 billion in free cash flow.
On Sept. 12, Piper Sandler analyst Ryan Todd raised his price target for ConocoPhillips (NYSE:COP) to $134 from $123, reiterating an overweight buy stance on the stock.
At the end of the second quarter of 2022, 71 hedge funds were interested in ConocoPhillips (NYSE:COP), with shares in the company worth $2.42 billion. That compares to 67 hedge funds with $2.58 billion in holdings in the previous quarter.
As of June 30thFisher Wealth Managementis the largest shareholder in ConocoPhillips (NYSE:COP), with stock worth $607 million. The investment covers 0.42% of Ken Fisher's 13F portfolio.
Herewhat is it?diamond hill capitalhad this to say about ConocoPhillips (NYSE:COP) in its Q1 2022 investor letter:
“We reallocated capitalConocoPhillips(NYSE:COP), which traded at a discount to our estimate of intrinsic value and is well positioned for the long term given its low-risk investment base."
6. Coterra Energy Inc. (NYSE:CTRA)
Accumulated profitability up to September 15: 57.23%
Number of hedge fund holders: 40
Coterra Energy Inc. (NYSE:CTRA) is on the rise and currently trades at bargain prices. On September 15, Coterra Energy Inc. (NYSE:CTRA) was up 57.23% for the year and was trading at a PE multiple of 7x. At the end of the second quarter of 2022, 40 hedge funds held shares of Coterra Energy Inc. (NYSE:CTRA). The total value of these shares was US$ 437.35 million.
Coterra Energy Inc. (NYSE:CTRA) also offers a strong dividend payout and has plenty of cash to back it up. As of Sept. 15, the stock offered an expected dividend yield of 8.07% and free cash flow of $2.2 billion.
On Aug. 18, Mizuho analyst Vincent Lovaglio raised his price target on Coterra Energy Inc. (NYSE:CTRA) from $40 to $43, reiterating a Buy recommendation on the stock. On Aug. 31, Barclays analyst Jeanine Wai raised her price target on Coterra Energy Inc. (NYSE:CTRA) from $37 to $43, maintaining an equal weight rating for the stock.
As of June 30thdiamond hill capitalowns more than 4.5 million shares of Coterra Energy Inc. (NYSE:CTRA) and is the company's principal investor. The fund's shares are valued at US$116.4 million.
Herewhat is it?diamond hill capitalsaid the following about Coterra Energy Inc. (NYSE:CTRA) in its Q1 2022 Investor Letter, Diamond Hill Long-Short Fund:
“Other major contributors during the first quarter included energy exploration and production companies.Coterra Energy(NYSE: CTRA). The company has benefited from rising energy demand as COVID-related economic restrictions eased, along with concerns about supply disruptions related to the Russian invasion of Ukraine.”
Other S&P 500 stocks bullish in 2022 include Occidental Petroleum Corporation (NYSE:OXY), Enphase Energy, Inc. (NASDAQ:ENPH) and Marathon Oil Corporation (NYSE:MRO).
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disclosure. none.The 10 best performing S&P 500 stocks in 2022was originally published on Insider Monkey.