Despite the risks associated with the COVID health crisis and speculation that the Federal Reserve will tighten monetary policy faster than expected, 2021 – albeit with two trading days left – was another excellent year for US equities across the board. The benchmark is up 27.4% since the start of the year, the tech heavy gained 22.5%, while the 30 stocks are up 18.9% so far this year.
S&P, NASDAQ and Dow Chart
With Wall Street soon closing the curtain on a blockbuster year, we've compiled a list of five stocks that have led the way in terms of year-to-date performance in 2021.
Thursday we publish Wall Street's biggest losers, so stay tuned.
1. AMC Entertainment
Jan. 1 Opening Price: $2.12
Dec 28 Closing Price: $27.74
2021 Year-To-Date Profits: + 1,207.5%
Market Capitalization: $14.2 billion
AMC Entertainment Holdings (NYSE:) took the market by storm in 2021 thanks to its "meme stock" status, driven by rising popularity among young traders on Reddit'sr/WallStreetBets forum and Robinhood (NASDAQ:).
Investors were also encouraged by signs of recovery in the region as moviegoers around the world flocked to cinemas in greater numbers amid the easing of pandemic-related restrictions.
Year-to-date, shares of the Leawood, Kansas-based movie theater operator have posted gains of about 1.207%, far outperforming the comparable return of the S&P 500, making it the best-performing market of 2021.
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AMC shares — which started the year at $2.12 and shot all the way to a record high of $72.62 on June 2 — ended Tuesday's session at $27.74. At current levels, the world's largest cinema chain, which saw its shares collapse 70% in 2020 during the coronavirus pandemic, has a market cap of $14.2 billion.
Looking ahead, we don't expect AMC to repeat its annual blockbuster performance in 2022 as retail-driven interest fades amid lingering concerns about the impact of the COVID Omicron variant on its business. Indeed, InvestingPro models predict a decline of about 34% over the next 12 months, pushing stocks closer to their fair value of $18.20.
2. GameStop
Jan. 1 Opening Price: $18.84
Dec 28 Closing Price: $146.46
2021 Year-To-Date Profits: +677.4%
Market Capitalization: $11.1 billion
Like AMC, GameStop (NYSE:) emerged as a popular name among retail investors on Reddit's WallStreetBets forum in 2021, leading to the epic "meme stock"- trading frenzy that saw a notable rise in stocks this year.
Widely regarded as the original WSB darling, the Grapevine, Texas-based video game retailer's shares are up about 677% with just a few days left in the year, making it the second-highest performing share on Wall Street.
In addition to capitalizing on its unique status as a favorite for social media memes, GameStop, led by former Chewy CEO Ryan Cohen, has taken steps to position itself for a digital age through its e-commerce -stimulate activities.
GME began trading on January 1 at $18.84 and rose to a record high of $483.00 on January 28. It closed Tuesday at $146.46, earning the gaming merchandise retailer a valuation of $11.1 billion.
Now the 'meme stock' declines in the rearview mirror, we expect GameStop's rise to slow in the new year amid concerns about the business outlook. The company's most recent financial numbers released on December 8 failed to impress shareholders as they have increased significantly from the year-ago period.
Not surprisingly, GME stocks are currently overvalued under the InvestingPro models and could fall about 28% over the next 12 months to fair value of $105.82 per share.
InvestingPro GME Fair Value Chart ]
Source: InvestingPro
3. Avis Budget Group
Jan. 1 Opening Price: $37.30
Dec 28 Closing Price: $210.31
2021 Year-To-Date Profits: + 463.8%
Market Capitalization: $11.8 Billion
Avis Budget Group (NASDAQ:) is a leading provider of commercial rental cars, serving business travelers at major airports around the world. Shares of the Parsippany, New Jersey-based company have easily outperformed the broader market's comparable returns this year, benefiting from the reopening of the economy and vaccine-led return to normalcy.
Year-to-date, Avis stock is up a whopping 463.8%, making it Wall Street's third best performing name of 2021. The stock posted a daily gain of more than 100% on Nov. 2, after Avis topped its estimates for and earnings as it announced its third-quarter financial results and stepped up its share buyback plan.
CAR – which started trading at $37.30 on January 1 and rose to a record high of $545.11 on November 2 – was traded at $210.31 last night. At its current level, the rental car specialist that operates the Avis brand, as well as Budget Rent a Car, Budget Truck Rental and Zipcar, has a market cap of $11.8 billion.
Looking ahead, Avis remains a solid choice as the car rental giant continues to recover from its pandemic slump amid strong demand for rental cars thanks to an improving travel environment.
According to the InvestingPro model, despite strong YTD gains, CAR stocks are currently undervalued and could see an increase of about 19% from current levels to the fair value of the company over the next 12 months. $249.59/share.
InvestingPro CAR Fair Value Chart
Source: InvestingPro
4. Upstart Holdings
Jan. 1 Opening Price: $40.75
Dec 28 Closing Price: $148.97
2021 Year-To-Date Profits: +265.5%
Market capitalization: $12.2 billion
Upstart Holdings (NASDAQ:), which uses artificial intelligence tools to evaluate personal loan applications for banks and is widely regarded as one of the leading online credit marketplaces, has had an amazing year. At one point, shares of the San Mateo, California-based AI lending platform operator, which held its first public offering in December 2020, rose more than 800%. But a general sell-off in the fast-growing tech sector threw some of the wind out of the high-flyer's sails.
Despite recent volatility, Upstart shares are up 265.5% year-to-date, making them the fourth best-performing stock of 2021, thanks to rising demand for its AI-driven credit control services.
UPST started the year at $40.75 and climbed to a record $401.49 on October 15. It ended Tuesday's session at 148.97. At its current level, the fintech company has a market cap of $12.2 billion.
Upstart appears poised for further into 2022. The current business environment is fueling demand from small banks and credit unions for its innovative services that facilitate the assessment of a potential borrower's creditworthiness.
In fact, InvestingPro models point to a nearly 4% rise in UPST stock over the next 12 months, bringing stocks closer to their fair value of $155.05.
InvestingPro UPST Fair Value Chart []
Source: InvestingPro
5. Devon Energy
Jan. 1 Opening Price: $15.57
Dec 28 Closing Price: $44.50
Year-to-date gains: +185.8%
Market capitalization: $30.1 billion
One of the nation's largest independent shale oil and gas producers, Devon Energy (NYSE:) has delivered a standout performance in the booming energy sector this year, reaping the benefits of higher energy prices and an improvement in global question.
Shares of the Oklahoma City, Oklahoma-based company are up approximately 186% to date, with investors encouraged by continued efforts to return more cash to shareholders in the form of higher dividend payments and share buybacks.
DVN lost 37% in 2020 amid the coronavirus pandemic, but closed last night at $44.50, ahead of the recent five-year high of $45.56 reached on November 24. At its current level, the energy company, which has outperformed other household names in the industry such as ExxonMobil (NYSE:) and Chevron (NYSE:) – has a market cap of $30.1 billion.
Robust earnings to date mean Devon remains one of the best names to own in 2022 for investors looking to take advantage of the ongoing recovery in the US oil and gas sector. The low-cost producer is poised to continue benefiting from its great Permian business, while taking advantage of strong oil and gas prices, which will help drive future profits and growth.
A look at the quantitative models in InvestingPro shows us that a nearly 20% increase in Devon shares from current levels over the next 12 months to a fair value of $53.30 per share is likely.
InvestingPro DVN Fair Market Value Chart
Source: InvestingPro
Thursday we will publish the five biggest stock market losers of 2021.
