In a brutal year for the stock market, Cardinal Health is the exception to the rule.
shares dublinThe New York-based wholesale drug distribution and medical products company rallied 49.3 percent to a multi-year high last year, snapping its worst stock market performance since 2008.
While most locally listed stocks have struggled in the last year, Cardinal does have a stock of companies: Shares of food companies Lancaster Colonyfor example, up 19.1%, Greif shares rose DelawareManufacturers of industrial packaging and containers rose 11.1 percent.
“Companies with more stable, predictable earnings streams exhibit less volatility and perform better in recessionary environments,” he said NickrechCEO of The Earnings Scout, a US-based consulting firm cleveland.
On the other hand, shares of Upstart, which uses artificial intelligence and machine learning to automate the lending process, are down 91% in 2022 after surging 271.3% in 2021, and Root, a young auto insurer, underperformed for the second year in a row. 92% after an 80% year-over-year decline.
Local retailers have also had a rough year multitudinous Lose two-thirds of its value.
Rising rates, slowing economy hurt stocks
A year ago, stock market indexes were at or near record highs, rising sharply for the third year in a row, fueled by low interest rates, healthy consumer spending and falling unemployment.
But then inflation jumped to a four-decade high, federal reserve In response, interest rates have risen sharply, slowing the economy so much that many forecasts are calling for a recession in 2023.
As a result, stocks have been punished, especially high-flying tech stocks that have yielded little or no gains.
The Dow Jones Industrial Average, made up of 30 large companies, is down 8.8% in 2022, Standard & Poor’s The index of the 500 largest listed companies fell 19.4%, while the tech-heavy Nasdaq fell 33.1%.
Cardinal Health Shares up in 22; others sour
Before the Great Leap Forward in 22 years, Cardinal Health Haven’t done anything in years.
This dublinThe – based company faces thousands of lawsuits over the distribution of opioids, along with other large pharmaceutical distribution companies, as $26 billion 2021 settlement. Then early in the pandemic, Cardinal experienced rising supply chain costs from importing medical supplies.
As a result, it topped sales and profits for the fiscal first quarter, which it reported in November wall street estimates, helping push up the stock price.
“I recognize there is still a lot of work to be done, but I remain excited about these opportunities to drive growth,” Jason HollarCardinal’s new chief executive told analysts on a conference call. “I believe our resilient business model, strong operating cash flow generation, favorable capital structure and capital allocation flexibility differentiate us during this period of macroeconomic uncertainty, and I am confident about our future.”
Compared to other markets, Cardinal is the kind of stable business that stands out in 22 years, he said Greg McBrideChief Financial Analyst at Bankrate.com.
“Companies with stable profits and attractive valuations are better able to weather this environment,” he said.
local retailer multitudinous (-67.4%), designer brand (-31.2%), abercrombie & Fitch (-34.2%), victoria’s secret (-35.6%) struggled last year after 21 years of gains, as did companies that benefited from lower interest rates, such as homebuilders M/I home (-25.7%) and insulation companies installed building products (-38.7%).
shares Marysville-based on Scott’s Miracle Growth Perioda big winner from COVID-19 from homeowners stuck at home, also took a hit last year, down 69.8%.
But Upstart’s stock is based on west coastIts largest office and second headquarters are located in columbusContinue to fluctuate.
Founded in 2012, Upstart uses artificial intelligence and machine learning to automate the lending process.
The company went public in late 2020, and its shares have climbed for most of 2021, up 271.3% for the year.
It was once one of the most valuable companies in the region, but its valuation has now fallen to just over $1 billion.
“Stocks that were overvalued and in recession were the first to sell off,” Raich said.
What will happen in 23 years?
Overvalued stock valuations become more reasonable in 2022, but Raich believes that with a potential recession looming, stock prices could fall further in the coming months.
“No company is immune to a recession,” he said. “Some companies are less hurt in a recessionary environment.”
Investors have a hard time picking stock market bottoms, which is why they should invest over time, McBride said.
“Now is the time to buy,” he said. “It might not pay off investors overnight, but it will over time.”
columbus Stock performance of companies in 2022
Price as of close December 31. Excludes dividends.
* abercrombie & Fitch -34.2%
* Early drainage -39.8%
* american electric power company 6.7%
* Bark – 64.2%
* Bath and Body Products -39.6%
* multitudinous -67.4%
* Bread Finance -43.4%
* Cardinal Health 49.3%
* commercial vehicle -15.5%
* Mandrel 52.6%
* designer brand -31.2%
* diamond mountain -4.7%
* Express – 66.9%
* Greif 11.1%
* heartland bank 3.1%
* huntington bank stock -8.6%
* installed building products -38.7%
* Lancaster Colony 19.1%
* M/I home -25.7%
* National Park 2.5%
* Root – 92%
* rocky brand -40.7%
* Scott’s Miracle Growth Period -69.8%
* Upstarts -91.3%
* victoria’s secret -35.6%
* Wendy -5.1%
* Worthington Industries -9.1%