{"id":12130,"date":"2022-12-28T17:54:08","date_gmt":"2022-12-28T14:54:08","guid":{"rendered":"https:\/\/www.robomarkets.com\/blog\/?p=12130"},"modified":"2023-12-08T13:23:02","modified_gmt":"2023-12-08T10:23:02","slug":"profitability-in-2022-leaders-and-outsiders","status":"publish","type":"post","link":"https:\/\/www.robomarkets.com.cy\/blog\/stock-market\/top-stocks\/profitability-in-2022-leaders-and-outsiders\/","title":{"rendered":"Profitability in 2022: Leaders and Outsiders"},"content":{"rendered":"\n

Today we will find out which sectors of the economy and which of their representatives demonstrated the highest and lowest profitability in 2022. Let's try to explain the reasons for such growth and decline.<\/p>\n\n\n\n

<\/span>What events preceded 2022<\/span><\/h2>\n\n\n\n

With the breakout of the COVID-19 pandemic in 2020, the US government initiated the QE programme, pouring trillions of dollars into the country's economy. If we take a look at the balance chart of the CB that was providing businesses with cash buying corporate bonds<\/a>, we will notice a recorded growth of more than 4.5 trillion USD from April 2020 to December 2021.<\/p>\n\n\n\n

\"\"<\/a>
Balance of US CB<\/em>*<\/figcaption><\/figure>\n\n\n\n

Over this period, the S&P 500<\/a> stock index saw a 115% growth, while the number of companies that entered exchange platforms set a record, reaching 1504.<\/p>\n\n\n\n

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<\/span>Reduced investments in oil<\/span><\/h3>\n\n\n\n

With most of the money spent on developing environmentally friendly energy sources, the oil sector financing was reduced. Consequently, the number of oil drills reached a 15-year low in the US.<\/p>\n\n\n\n

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Number of drilling mills in the US<\/em>*<\/figcaption><\/figure>\n\n\n\n

<\/span>Record inflation<\/span><\/h3>\n\n\n\n

The launch of the QE programme caused a sharp increase in the demand for goods.  And with oil products not just being the crude material for production, but also the main fuel for transportation, the demand for crude oil increased considerably, and so did oil prices. Moreover, other commodities became more expensive. All this led to the rise of inflation, which by July 2022 had recorded a 0.1% growth, reaching a level of 9.1%, a new 40-year high.<\/p>\n\n\n\n

\"\"<\/a>
Inflation levels in the US<\/em>*<\/figcaption><\/figure>\n\n\n\n

To keep the situation under control, the Fed started a cycle of interest rate hikes and launched the QT programme. 2022 turned out to be the total opposite of 2020 and 2021, with almost no catalysts for the growth of stock prices<\/a>.<\/p>\n\n\n\n

<\/span>Top-3 yielding sectors in 2022<\/span><\/h2>\n\n\n\n

The only sector of the economy that demonstrated profitability this year was the energy sector – thanks to hydrocarbon prices hitting all-time highs. The return of the sector was 38.91%, making it number one in our rating.<\/p>\n\n\n\n

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Profitability of different sectors of the economy in 2022<\/em>*<\/figcaption><\/figure>\n\n\n\n

Number two is Utilities: return here reached -1.82%. Number three is the Consumer defensive sector with -6.62% in return. The worst yield was demonstrated by Communication services: it amounted to -39.42%.<\/p>\n\n\n\n

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<\/span>Energy sector<\/span><\/h3>\n\n\n\n

The Top 3 leaders of the energy sector with capitalisation over 10 billion USD are:<\/p>\n\n\n

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