Illustration by Albert Tercero
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Picking stocks in 2022 was no easy feat. The magic that made giant tech names drive the market higher year after year has suddenly run out. It turns out that much of the magic was provided by the Fed, who suddenly decided to throw out their wand. With the rise in interest rates, the
The index fell 19.4 percent, its worst year since 2008.
Several stocks highlighted in Barron It fell victim to the same dynamics that flooded the broader market—inflation, rising interest rates, supply chain slowdowns. But overall, our bull picks were better than their benchmarks in 2022.
From the date of publication until the end of the year, Barron Company names fell 4.8%, while tracked indexes fell 5.2%. Our downward appeal hit the target as well, dropping much more than their standard.
Barron Follows the performance of our stock picks throughout the year, to allow readers to see how well our predictions worked against the S&P 500, or
S&P MidCap 400And
or the
Russell 2000And
Depending on the size of the company.
Performance tables below Picks and pans on our stock picks page It is updated regularly, and we publish full results in the Journal at least once a year. Not all stocks we write about are tracked. Stocks written in columns such as Trader and Streetwise are not included, although columnists often write about year-end winners and losers. Stories about entire industries or involving more than three stocks don’t make the cut either.
Sometimes writers will reconsider their choices because of a new development such as an acquisition that changes the investment case. When a writer advises readers to take profits or cut their losses, the pick’s gain or loss is locked in to the stock price on the follow-up date.
Every year, some stocks are picked Barron Outperforms based on some distinguishing characteristics, such as a subsidiary or company modification. However, success or failure on an aggregate basis depends on whether writers are drawn to the right sectors or industries. In 2022, the energy sector will far outperform the rest of the market. Some industries, such as pharmaceuticals and agricultural equipment, have also outperformed the market.
In 2022, our top pick is Texas Pacific Land (Ticker: TPL), which owns 880,000 acres in the Permian Basin, the most productive oil basin in the country. The company charges hydraulic fracturing fees, which rise with oil and gas prices and production volume. Oil prices have risen to their highest level since 2008, and the Permian has seen rapid growth, with companies such as
Exxon Mobil
(XOM) f
chevron
(CVX) Increased production there.
Other energy names mentioned in Barron I also excelled with
APA
(APA) f
Equinor
(EQNR) exceeded its benchmarks by more than 20 percentage points. Both have benefited from higher oil and gas prices, with Equinor ramping up its transition to cleaner energy as well.
Barron He also advised readers on how to invest in companies that help alleviate last year’s food shortages, which were exacerbated by Russia’s invasion of Ukraine. Among the biggest winners there was
CNH Industrial
(CNHI), which uses technology to make farmers more efficient. Its stock returned 32% from the story’s publication in July through the end of the year.
Starbucks
(SBUX) was also a winning pick, returning 33% following our June publication. The stock suffered a shock when founder Howard Schultz returned to the helm. It will probably get another one as China reopens and coffee drinkers venture out again. The company has managed to raise prices, so expect Fenty to get more Caro.
Not every choice was good. The home internet provider was among the biggest losers
Stary Group Holdings
(STRY), which had to raise capital within a year, made raising interest rates by the Federal Reserve more expensive to do so.
Engy
(ANGI), which makes home service recommendations, sales grew more slowly than expected. and chip maker
entangled
SYNA fell victim to a broader slowdown in PC sales.
Barron It published two downward picks in 2022, both about automakers. The stories correctly warned readers to stay away from companies that have failed in their efforts to build electric vehicles.
Lucid Group
(LCID) has struggled to produce its $150,000 electric car for size and flawlessly. It is burning through cash and facing increasing competition from Tesla, Mercedes, BMW, Audi and Porsche, causing stocks to crash. And
Toyota Motor
(TM) has switched to electric vehicles later than some of its peers, forcing it to catch up. Its stock also has some catching up to do.
| company / bar | date of publication | Pre-story price | 12/30/22 price | full return | standard return |
|---|---|---|---|---|---|
| Texas Pacific Land / TPL | 3/31 | $1450.35 | $2,344.23 | 64.2% | -9.9% |
| Starbucks / SBUX | 6/24 | 75.20 | 99.20 | 33.4 | 2.1 |
| CNH Industrial / CNHI | 7/29 | 12.15 | 16.06 | 32.2 | -5.0 |
| Halon/HLN | 8/18 | 6.12 | 8.00 | 30.7 | -9.6 |
| dir / de | 7/29 | 331.63 | 428.76 | 30.1 | -5.0 |
| APA/APA | 9/23 | 37.11 | 46.68 | 26.5 | 2.7 |
| Madison Square Garden Sports/MSGS | 10/7 | 151.88 | 183.33 | 26.4 | 3.8 |
| Air Products & Chemicals / APD | 4/1 | 249.91 | 308.26 | 25.7 | -14.2 |
| Novo Nordisk / NVO | 8/12 | 108.79 | 135.34 | 25.1 | -8.1 |
| BlackRock/BLK | 6/20 | 582.26 | 708.63 | 23.4 | 5.4 |
| Eli Lilly / Lilly | 8/12 | 301.17 | 365.84 | 22.2 | -8.1 |
| outdoor/deck deckers | 10/12 | 337.52 | 399.16 | 18.3 | 7.7 |
| U Hall Holding / UHL (1) | 9/19 | 51.52 (2) | 60.19 | 16.8 | 2.6 |
| PCAR / PCAR | 10/21 | 87.57 | 98.97 | 16.7 | 5.1 |
| Equinor/EQNR | 3/14 | 32.29 | 35.81 | 15.7 | -7.5 |
| BP / BP | 10/21 | 30.96 | 34.93 | 14.1 | 5.1 |
| General Electric / General Electric | 8/5 | 73.67 | 83.79 | 14.0 | -6.8 |
| Eaton / Etn | 6/6 | 140.35 | 156.95 | 13.0 | -5.6 |
| Newmont / Nim | 9/16 | 42.40 | 47.20 | 12.6 | -1.1 |
| nVent Electric / NVT | 3/28 | 34.72 | 38.47 | 12.5 | -9.2 |
| Ethan Allen Interiors/ETD | 2/21 | 24.86 | 26.42 | 12.4 | -11.2 |
| American Eagle Outfitters / AEO | 8/15 | 12.85 | 13.96 | 8.6 | -12.1 |
| JPMorgan Chase/JPM | 4/25 | 126.81 | 134.10 | 7.7 | -9.0 |
| ExxonMobil / XOM | 10/21 | 103.93 | 110.30 | 7.0 | 5.1 |
| FMC/FMC | 3/10 | 120.00 | 124.80 | 5.9 | -9.0 |
| Citizens Financial Group / CFG | 5/12 | 38.03 | 39.37 | 5.8 | -1.3 |
| Cadre Holdings / CDRE | 6/27 | 19.15 | 20.14 | 5.8 | 0.6 |
| Wesco International/WCC | 1/31 | 118.88 | 125.20 | 5.3 | -9.3 |
| T. Rowe Price Group / TROW | 6/20 | 106.68 | 109.06 | 4.4 | 5.4 |
| Cortiva/CTVA | 7/29 | 56.96 | 58.78 | 3.7 | -5.0 |
| Wendy / Wayne | 3/21 | 22.26 | 22.63 | 3.6 | -14.6 |
| Graham Holdings/GHC | 12/31/21 | 591.00 | 604.21 | 3.3 | -13.1 |
| shell / shell | 5/16 | 56.70 | 56.95 | 3.2 | -3.5 |
| Goldman Sachs/GS Group | 1/24 | 343.91 | 343.38 | 2.5 | -11.3 |
| Visa / V. | 10/27 | 203.33 | 207.76 | 2.4 | 0.6 |
| Watsco/WSO | 7/8 | 248.06 | 249.40 | 2.4 | 5.3 |
| Estee Lauder / EL | 7/14 | 245.44 | 248.11 | 1.6 | 1.8 |
| Crown Castle/CCI | 11/17 | 135.61 | 135.64 | 1.2 | -2.8 |
| Regal RexNord/RRX | 12/12 | 119.85 | 119.98 | 0.4 | -2.3 |
| ABBV / ABBV | 12/2 | 161.63 | 161.61 | 0.0 | -5.7 |
| MetLife / Dead | 11/4 | 73.11 | 72.37 | -0.3 | 3.5 |
| Costco wholesale/cost | 12/22 | 462.06 | 456.50 | -1.2 | -1.0 |
| Activision Blizzard / ATVI | 7/1 | 77.86 | 76.55 | -1.7 | 2.3 |
| American Tower / AMT | 11/17 | 219.15 | 211.86 | -2.6 | -2.8 |
| Ingersoll Rand/IR | 11/23 | 53.64 | 52.25 | -2.6 | -3.9 |
| Volkswagen / Voabi | 9/12 | 14.79 | 12.38 | -3.0 | -5.1 |
| Global Business Travel Group / GBTG | 6/13 | 6.99 | 6.75 | -3.4 | -1.3 |
| Mr. Cooper Group / Cobb | 1/24 | 42.13 | 40.13 | -4.7 | -10.2 |
| T-Mobile US / TMUS | 8/26 | 147.07 | 140.00 | -4.8 | -8.0 |
| Illumina/ILMN | 10/7 | 212.72 | 202.20 | -4.9 | 2.9 |
| SBA Communications/SBAC | 11/17 | 296.02 | 280.31 | -5.3 | -2.8 |
| Bristol-Myers Squibb/BMY | 5/26 | 77.24 | 71.95 | -5.5 | -2.5 |
| PNC Financial Services Group / PNC | 8/22 | 170.79 | 157.94 | -6.6 | -8.6 |
| Fortune Brands Innovations / FBIN (3) | 5/6 | 62.37 (4) | 57.11 | -7.3 | -6.3 |
| target/tgt | 9/5 | 164.60 | 149.04 | -8.9 | -1.6 |
| Bungee / BG | 4/6 | 111.89 | 99.77 | -9.3 | -14.1 |
| ICL / ICL group | 7/29 | 8.95 | 7.31 | -13.4 | -1.3 |
| POOL COMPANY / POOL | 9/9 | 353.21 | 302.33 | -14.1 | -3.6 |
| FedEx / FDX | 4/15 | 205.74 | 173.20 | -14.4 | -11.5 |
| General Motors / General Motors | 5/9 | 39.58 | 33.64 | -14.6 | -5.8 |
| Dupont/DD | 2/17 | 82.12 | 68.63 | -14.8 | -13.0 |
| Bumble/BMBL | 11/11 | 25.46 | 21.05 | -17.3 | -3.7 |
| Microsoft / MSFT | 1/24 | 296.03 | 239.82 | -18.2 | -11.3 |
| Alcoa / AA | 8/29 | 55.84 | 45.47 | -18.4 | -4.8 |
| Boston Beer / Sam | 2/7 | 419.04 | 329.52 | -21.4 | -5.9 |
| Netflix / NFLX | 3/25 | 375.71 | 294.88 | -21.5 | -14.0 |
| Medtronic/MDT | 2/2 | 103.59 | 77.72 | -22.7 | -14.2 |
| MGM/MGM Resorts International | 1/10 | 44.53 | 33.53 | -24.7 | -16.6 |
| PayPal Holdings / PYPL | 8/8 | 95.32 | 71.22 | -25.3 | -6.7 |
| Standard motor products / SMP | 8/2 | 47.38 | 34.80 | -25.6 | -5.8 |
| Progyny/PGNY | 4/15 | 41.95 | 31.15 | -25.7 | -11.2 |
| Ginko Shipping and Trading Company / GNK | 5/23 | 22.66 | 15.36 | -26.3 | 0.3 |
| Lithia Motors / LAD | 5/2 | 283.13 | 204.74 | -27.3 | -1.6 |
| Amazon.com/AMZN | 7/22 | 124.63 | 84.00 | -32.6 | -3.2 |
| Under Armor / UAA | 4/25 | 15.47 | 10.16 | -34.3 | -9.0 |
| Goodyear Tires & Rubber / GT | 2/28 | 15.51 | 10.15 | -34.6 | -12.6 |
| Jamf Holding / JAMF | 3/14 | 33.02 | 21.30 | -35.5 | -10.0 |
| Walt Disney / dis | 3/25 | 138.96 | 86.88 | -37.5 | -14.0 |
| Generac Holdings / GNRC | 9/22 | 175.83 | 100.66 | -42.8 | 1.8 |
| Olaplex Holdings / OLPX | 10/3 | 9.55 | 5.21 | -45.4 | 6.2 |
| Synaptics/SYNA | 2/14 | 212.11 | 95.16 | -55.2 | -6.8 |
| Protera/PTRA | 1/10 | 9.09 | 3.77 | -58.5 | -18.1 |
| Angie / Angie | 17/1 | 8.21 | 2.35 | -71.4 | -17.4 |
| Starry Group Holdings / STRY | 4/4 | 7.95 | 0.05 | -99.4 | -14.8 |
| an average: | -4.8% | -5.2% |
1) name changed from Amerco; 2) adjusting the price to reflect a 10-to-1 stock split via a special dividend; 3) The name and bar have changed from Fortune Brands Home & Security (FBHS); 4) Adjusting the price to reflect the Masterbrand offer.
| Bearish: firm/bar | date of publication | Pre-story price | 12/30/2022 price | full return | standard return |
|---|---|---|---|---|---|
| Lucid / LCID Collection | 11/18 | $11.46 | $6.83 | -40.4% | -2.5% |
| Toyota Motor / TM | 5/9 | 173.30 | 136.58 | -20.2 | -5.8 |
| an average: | -30.3% | -4.2% |
write to Avi Salzman at avi.salzman@barrons.com