Top 10 instruments in 2022. What will be their outlook in 2023?

The year 2022 brought a myriad of surprises and obstacles to the markets. We experienced high volatility, a sharp rise in the price of commodities such as oil or natural gas, as well as the rapid fall of the cryptocurrency exchange FTX. This year has been a year of record prices, and there is no end in sight to the decline in inflation. Rising interest rates have begun to slow slightly, but the coming global recession is imminent. [1] Investors today face the dilemma of where to invest their money so that it is not swallowed up by high inflation. Let's take a look at our selection of the best instruments for 2022. We'll also talk about their direction in 2023.

It is typical for growth stocks to have an upward bias during economic expansions when interest rates are low. These stocks have already experienced a significant rally and outperformed value stocks or the S&P 500 index as a whole in the period after the last financial crisis. However, it is different nowadays. The rise in key interest rates has triggered a big shift by investors away from growth stocks. So, where did investors start "pouring" their capital? The trend today is value stocks, which offer interesting buying opportunities for opportunistic long-term investors.

 

We have compiled our ranking in a variety of ways so that it also covers the commodity or currencies sector, we focused primarily on the performance for the year 2022, and it turned out like this:

Snímek obrazovky 2023-01-10 v 11.11.15

Let's take a closer look at the top three companies in the rankings:

 

1. Occidental Petroleum Corp. (OXY) 

 

Occidental Petroleum focuses on the extraction of oil and gas, commodity exploration, as well as the production of petrochemical products. For the third quarter of 2022, the company reported a profit of $2.5 billion on net sales of $9.4 billion. Net income and net sales increased 305% and 38% year-over-year, respectively.

Warren Buffett also owns a stake in OXY. According to the latest available data, his company Berkshire Hathaway owns 21.4% of OXY shares. Looking ahead, it is very important to note that Buffett's company received regulatory approval in August to buy up to 50% of this oil and gas producer. The value of the stock could reach between $75 and $100 per share in the next year from today's $62 per share. [2] During 2022, the share value of this title increased by approximately 121%.*

 

top102

Occidental Petroleum Corp (OXY)'s performance over the past 5 years. (Source: Investing)*

 

2. Marathon Petroleum Corp

 

Marathon Petroleum Corporation is an energy company engaged in the processing, sale and retail of crude oil in the United States. Adjusted earnings before interest, taxes, depreciation, and amortization for the third quarter of 2022 were excellent, up to $6.8 billion compared to $2.4 billion for the third quarter of 2021. In the company's favour is the fact that the market demand for their products is very strong, while they are improving their operations and business. Other positives were the completion of a $15 billion share buyback and the announcement of a quarterly dividend increase of approximately 30%. From the current US$111 per share, the value could rise to between US$134 and US$153 in the next period. [3]

top10 2

Marathon Petroleum Corp's performance over the past 5 years. (Source: Investing)*

 

3. ExxonMobil Corporation

 

One of the world's largest energy providers and chemical producers, also dedicated to developing next-generation technologies. The giant ExxonMobil can be happy with 2022. The last quarter was one of the best in its history thanks to high oil prices, rising production, and strong refining. A plus factor was the start of the African FLNG project, which could provide further growth in the near term. The outlook for energy prices over the next few years is very strong; we estimate an increase in the company's value to US$138 from the current price of US$105 per share. [4] However, this increase may be slowed down by worse results in the last quarter of the year. Over the past year, this title has gained 72%. [*]

top10 3

ExxonMobil's performance over the past 5 years. (Source: Investing)*

 

Conclusion

The winners for the year 2022 were clearly the shares of energy companies, which were "riding" on the high prices of oil and natural gas. So, the prediction for 2023 is clear, unless there are any unforeseen events and there is no severe global recession, this performance could continue. [5] An end to the conflict in Ukraine is not in sight, and commodity supply will remain limited.

 

Olívia Lacenová, analyst of Wonderinterest Trading Ltd.

 

All data current as of 21.12.2022

 

[*] Past performance is no guarantee of future results

 

[1,2,3,4,5] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied by any forward-looking statements.

 

https://www.investing.com/equities/chevron

https://www.investing.com/equities/merck---co

https://www.investing.com/equities/lockheed-martin

https://www.investing.com/equities/eli-lilly-and-co

This text constitutes marketing communication. It is not any form of investment advice or investment research or an offer for any transactions in financial instrument. Its content does not take into consideration individual circumstances of the readers, their experience or financial situation. The past performance is not a guarantee or prediction of future results.

🍪 Cookies

We use cookies to store, access and process personal data to give you the best online experience. By clicking Accept Cookies you consent to storing all cookies and ensure best website performance. You can modify cookie preferences or withdraw consent by clicking Cookie Settings. To find out more about cookies and purposes, read our Cookie Policy and Privacy Notice.

Cookies settings


Cookie Control

What are cookies?

Cookies are small text files that enable us, and our service provides to uniquely identify your browser or device. Cookies normally work by assigning a unique number to your device and are stored on your browser by the websites that you visit as well as third-party service providers for those website. By the term cookies other technologies as SDKs, pixels and local storage are to be considered.


If Enabled

We may recognize you as a customer which enables customized services, content and advertising, services effectiveness and device recognition for enhanced security
We may improve your experience based on your previous session
We can keep track of your preferences and personalize services
We can improve the performance of Website.


If Disabled

We won't be able to remember your previous sessions, that won't allow us to tailor the website according to your preferences
Some features might not be available and user experience reduced without cookies


Strictly necessary means that essential functions of the Website can not be provided without using them. Because these cookies are essential for the properly working and secure of Website features and services, you cannot opt-out of using these technologies. You can still block them within your browser, but it might cause the disfunction of basic website features.

  • Setting privacy preferences
  • Secure log in
  • Secure connection during the usage of services
  • Filling forms

Analytics and performance tracking technologies to analyze how you use the Website.

  • Most viewed pages
  • Interaction with content
  • Error analysis
  • Testing and Measuring various design effectivity

The Website may use third-party advertising and marketing technologies.

  • Promote our services on other platforms and websites
  • Measure the effectiveness of our campaigns

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 92.59% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.