Which are the top 5 stocks in the world in 2022? If you want to invest in the stock market in 2022, it will be an advantage if you are aware of the top 5 stocks in 2022. According to the Russell 1000 Index, let’s try to find out the top 5 stocks in 2022.
Russell 1000 Index
Russell 1000 Index is the index consisting of the top 1000 largest companies whose stocks are traded in the US and it’s counted according to the market capitalization.
As the U.S. stock market is the largest place in the world to trade stocks, the Russell 1000 Index is a dependable benchmark to get an idea of the world’s biggest corporation’s stock performances.
By this index, almost 92% of total U.S. stock can be measured accurately. It can reflect the stock market condition of the U.S. as a whole.
Top 5 Stocks in 2022
1. GameStop Corp. (GME)
The year-to-date Return of this one of the top 5 stocks in 2022 GameStop is 815% and the market capitalization is $13.2 billion.
Operating in the consumer discretionary sector, the company is a retailer of video games and other entertainment products.
Under the name GameStop, Micromania, and EB Games, it operates both e-commerce and physical stores. The country which is mainly conducting their business includes the U.S., Canada, Australia, and other first-world countries of Europe.
The company’s main products include video game hardware and accessories, along with software and collectible items.
GameStop faced a net loss of $61.6 million on sales of $1.2 billion in the second quarter of the fiscal year 2022. But, net sales were higher than that of the same quarter last year. Then, its net loss was $ 111.3 million.
When, early in the year, the Reddit users on the r/Wallstreetbets subreddit forum encouraged retail traders to start a short squeeze on the stock, GameStop’s stock plummeted very high.
Stocks of other intensely shorted stocks like AMC Entertainment Holdings Inc. and Blackberry Ltd also went up sharply in the so-called “meme stock” situation.
Earlier this year, GameStop’s stock retreated from the highs, but it’s still up so much since the beginning of the year. This thing has made it one of the top 5 stocks of 2022.
2. Upstart Holdings Inc.
With a Year-to-Date Return of 321% and market capitalization of $14.1 billion, Upstart Holdings is second on the list of top 5 stocks in 2022.
Operating in the financial services sector, it’s a lending platform that uses Artificial Intelligence to assess the credit card worthiness of potential borrowers.
In order to see more variables than general credit-risk assessments, Upstart uses machine learning. According to their views, it will allow banks to lend to more borrowers, but with less risk, thanks to the increased accuracy of this method.
In the third quarter of Fiscal Year 2022, Upstart saw a net income of $29.1 million against a revenue of $228.5 million. Hence, their net income increased 201% and revenue increased 249.5% year-over-year (YOY).
After beginning to trade on the Nasdaq, Upstart’s shares have got unprecedented growth. It occurred after the initial public offering of the company in December 2021.
The strong fundamental of the company has been signified as the primary factors that drove this sharp rise. The company is profitable and growing fast, along with the business model centered on artificial intelligence.
3. Moderna Inc.
With a Year-to-Date Return of 193.6% and a Market capitalization of $12.4 billion, Moderna Inc. is third on the list of top 5 stocks in 2022.
Operating in the healthcare sector, Moderna is a biotechnology company focused on the invention and advancements of messenger RNA (mRNA) therapeutics and vaccines.
For health-related problems like infectious, immuno-oncology, cardiovascular and autoimmune diseases along with rare diseases, it develops mRNA medicines. Its development pipeline has 23 current programs, among which 15 have already entered clinical studies.
In the third quarter of the fiscal year 2022, Moderna achieved a net income of $3.3 billion from a revenue of $5.0 billion. Compared to the net loss of $233 million reported one year ago, this net income is really a significant improvement for the company.
Over the past year, Moderna’s high-speed sales and shares were made possible due to the success of the COVID-19 vaccine. In December 2020, U.S. Food and Drug Administration (FDA) approved its emergency use authorization.
After they jointly invented the vaccine by Pfizer Inc. and BioNTech SE, it was the second COVID-19 vaccine that get permission for sale given by FDA. Early in 2022, the company generated its first profit from the soaring revenue on the sales of vaccines.
4. Devon Energy Corp
With a year-to-date return of 175.3% and market capitalization of $ 28.3 billion, Devon Energy Corp’s stock has excelled in the previous year and became one of the top 5 stocks in 2022. Operating in the energy sector, it’s an oil and natural gas exploration and production company.
Its portfolio of assets is located in the U.S. and is engaged in the exploration, production, and development of natural mineral resources like oil, natural gas, and natural gas liquids. In the third quarter of the fiscal year 2022, Devon Energy saw a net income of $839 million from a revenue of $3.5 billion.
In that quarter, from the net loss of $91 million, their net income rose tremendously, with revenue rising 224.8% YOY.
This year, due to the investor’s optimism over the whole energy sector, the Shares of Devon have received a massive boost. It was made possible despite surging oil prices and last year’s pandemic-depressed loss.
However, the rise in oil prices has boosted profit for oil producers. Devon has become a gainer in this process
5. Continental Resources Inc. (CLR)
With a Year-to-Date Return of 167.1%, along with a Market Capitalization of 15.7 billion, Continental Resources Inc. is also excelling in the list of top 5 stocks in 2022. Operating in the energy sector, Continental Resource is an oil and gas E&P (Exploration and Production) company.
The Bakken Oil Field region of North Dakota and Montana, it’s the largest leaseholder and one of the biggest oil producers. The company conducts its operation in the North, South, and East regions of the U.S.
In the third quarter of the fiscal year 2022, it earned a net income of $369.3 million from a revenue of $ 1.3 billion. They got a noteworthy improvement from the net loss of 79.4 million a year ago.
Alike Devon Energy, Continental Resources has benefited from oil prices rising. Since 2014, that price hasn’t risen so high; however, this year it’s really soaring high as the global economy is recovering from COVID-19 as well as supply shortage.
Not all E&P companies have benefited from this circumstance. Because of the hedging contracts for protecting against crashes in prices, some companies have lost out on the price rising.
Nonetheless, Continental was nearly unhedged and it has been able to take advantage of the rapid rise in oil prices.