2022’s 10 Best-Performing Stocks

These stocks have generated the best returns so far in 2022.

The S&P 500 gained 5.4% in November — a good sign for those hopeful that the stock market can recover from its worst year since 2008. But investors remain concerned about persistently high inflation, aggressive Federal Reserve interest rate hikes and an uncertain global economic outlook. The S&P 500 is down 14.4% year to date through Nov. 30, but a handful of top-performing stocks have bucked the bearish trend. Top performers include several oil and gas stocks benefiting from surging energy prices and tanker stocks that help store and transport petroleum products. Here are the 10 best-performing stocks through the first 11 months of 2022 among companies that trade on major U.S. exchanges and have market capitalizations of at least $1 billion. Total returns, which include dividends, are through Nov. 30.

10. International Seaways Inc. (ticker: INSW)

International Seaways is one of the world’s largest crude oil and petroleum products tanker companies. In November, the company reported record net income of $113.4 million in the third quarter, compared with a net loss of $67.4 million a year earlier. Shipping revenues more than tripled year over year in the quarter to $236.8 million. International Seaways also announced a $1-per-share special dividend to be paid in December in addition to the stock’s regular quarterly dividend of 12 cents per share. The company also used excess cash flow to buy back 687,740 shares of stock and repay $25 million in 8.5% senior notes in the third quarter. INSW stock is up 197.1% year to date.

9. PBF Energy Inc. (PBF)

PBF Energy is an independent refiner that produces gasoline, diesel and other refined products. PBF has taken advantage of the favorable energy environment by significantly improving its balance sheet in recent quarters, reducing consolidated debt by more than $2.6 billion in the past 18 months. Diesel prices are up 42% in 2022, while gasoline prices have increased by 8%. In October, PBF reported 78% revenue growth in the third quarter. Investors can expect PBF to continue to improve its balance sheet, and the company even recently reinstated its 20-cent quarterly dividend that had been suspended since March 2020. PBF Energy shares are up 208% year to date.

8. Teekay Tankers Ltd. (TNK)

Teekay Tankers is one of the world’s largest tanker owners, and the company has enjoyed elevated tanker rates throughout the year. In November, Teekay reported booked-to-date Suezmax tanker rates of $40,000 and Aframax tanker rates of $36,600. One year ago, Teekay reported Suezmax and Aframax tanker rates of just $11,600 and $10,300, respectively. The favorable tanker environment helped Teekay swing from a net loss of $52 million in the third quarter of 2021 to a net profit of $68 million in the third quarter of 2022. Teekay shares are up 209.5% year to date.

7. Peabody Energy Corp. (BTU)

Peabody Energy is one of the world’s largest pure-play coal producers. After the Ukraine conflict sent coal prices skyrocketing, Peabody reported 97% revenue growth and more than $460 million in free cash flow in the third quarter. In addition, Peabody generated $439 million in adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, up 50% from a year ago. Given the recent trends in coal prices and the absence of any meaningful progress toward a resolution in Ukraine, Peabody investors are understandably expecting the company’s big growth numbers to continue. BTU stock is up 217.2% year to date.

6. TransMedics Group Inc. (TMDX)

TransMedics is a health care stock that specializes in organ transplantation. TransMedics has developed the only organ transplant system that is approved by the U.S. Food and Drug Administration to transport multiple organs. TransMedics’ revenue jumped 378% in the third quarter, driven by commercial sales of the OCS Heart and OCS Liver systems. TransMedics guided for full-year revenue growth of at least 164%, and its impressive 71% gross margins suggest the $1.9 billion stock could be a cash cow for investors as the company grows. TransMedics could also potentially be an attractive acquisition target for a larger health care company. TMDX stock is up 222.9% year to date.

5. Sigma Lithium Corp. (SGML)

It’s not just energy stocks that are benefiting from elevated inflation in 2022. Sigma Lithium is a junior lithium mining company. Lithium is a key component in batteries that power electric vehicles and other products, and the price of lithium carbonate has skyrocketed 188% in the past year to new all-time highs. In November, Sigma said it’s on track to initiate commissioning of its ore crushing plant by the end of the year and begin commercial production in April 2023. The company has completed pre-stripping of its mine and said it expects to generate significant free cash flows starting in the second quarter of 2023. Rising lithium prices have pushed Sigma shares up 229.5% year to date.

4. Consol Energy Inc. (CEIX)

Consol Energy produces coal in the Appalachian Basin. Like other coal stocks, Consol has benefited from soaring energy prices in 2022. In November, Consol reported 81.7% total coal revenue growth in the third quarter. Consol also generated $107.1 million in free cash flow, repaid $56 million in debt and announced a $1.05-per-share dividend. Looking ahead, management said the company contracted 6 million tons of new business in the third quarter for delivery through 2026. In addition, Consol said its Itmann preparation plant was commissioned in September and completed its first train shipment in October. Consol shares are up 252% year to date.

3. Torm PLC (TRMD)

Torm is a U.K.-based refined oil shipping company with a fully owned fleet of more than 80 vessels. In November, Torm reported its best quarterly results in the company’s history. The company said its robust cash generation will enable the company to pay out a record $119 million, or $1.46 per share, in dividends on Dec. 8. Third-quarter revenue nearly tripled from a year ago, and Torm swung from a net loss of $14.7 million in the third quarter of 2021 to a net profit of $217.1 million in the third quarter of 2022. Surging shipping rates have sent Torm shares higher by 281% in 2022.

2. Scorpio Tankers Inc. (STNG)

Scorpio Tankers operates a fleet of ocean tankers that transports refined petroleum products worldwide. Tanker rates surged when Russia invaded Ukraine, and Scorpio has taken advantage of a favorable environment by reducing its debt by $970 million in the first three quarters of 2022. The company has also increased its unrestricted cash balance from $228 million in February to $490 million in October. Booming refined product demand, low inventories and strong refining margins will continue to support tanker rates. Scorpio shares are up 303.6% year to date.

1. Target Hospitality Corp. (TH)

Target Hospitality is a somewhat unconventional play on the 2022 oil and gas boom. The company provides workforce lodging and other temporary housing used for oil and gas drilling, mining, large-scale events, government agencies and disaster relief. The stock has had bullish momentum all year, but the majority of its gains have come since the beginning of July. On July 8, the stock jumped more than 31% after Target raised its 2022 revenue guidance by 53% following the announcement of a new government contract. Since the new contract was announced on July 6, Target shares are up 192.1% and the stock is now up 306.2% overall in 2022.

2022’s 10 best-performing stocks:

1. Target Hospitality Corp. (TH)

2. Scorpio Tankers Inc. (STNG)

3. Torm PLC (TRMD)

4. Consol Energy Inc. (CEIX)

5. Sigma Lithium Corp. (SGML)

6. TransMedics Group Inc. (TMDX)

7. Peabody Energy Corp. (BTU)

8. Teekay Tankers Ltd. (TNK)

9. PBF Energy Inc. (PBF)

10. International Seaways Inc. (INSW)

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