Sunday Nov 27, 2022

The 5 best-performing stocks on the S&P 500 this summer – Fortune

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While the stock market has been on a cold streak as of late, some companies have seen their stocks heat up this summer.

The S&P 500 overall endured a volatile summer, at one point plunging more than 20% from a January high in mid-June and entering bear market territory. While the index rallied in July, investors hoping for stability could be in for a rough patch: executives such as John Lynch, chief investment officer for Comerica Wealth Management, warn that people should expect further swings.

According to data from FactSet, these are the five best-performing stocks on the S&P since the beginning of June, each up more than 25%.

The solar energy equipment manufacturer has seen its stock soar 59% since June. For the second quarter the company posted revenue of $530.2 million (a 20% increase from Q1). J.P. Morgan wrote in a report that “[analysts] are encouraged by ENPH’s fundamental outlook, driven by industry tailwinds (continued unit growth in solar…energy storage penetration, electric vehicle adoption) as well as company- specific tailwinds (new products, improving margins and cash flow, international expansion opportunities).” ENPH has also found success abroad: according to the report, gross margins in Europe are “in-line” with those in the U.S. J.P. Morgan views this as a pleasant surprise given the competitive nature of the European market.

What is next for the stock? ENPH projections came above J.P. Morgan’s expectations, and the company expects revenues for the third quarter to be between $590 and $630 million. As long as ENPH continues to stave off competition—J.P. Morgan names solar power electronics company SolarEdge and inverter companies Huawei, SMA, and Sungrow as notable competitors—analysts think the stock has room to grow.

Etsy, Inc. (ETSY)

Rising 34% since June 1, Etsy has been somewhat of a surprise winner this summer, though the company has a record of outperforming during troubling times—it doubled merchandise sales during the pandemic. While ETSY owed its success back then to sellers’ abilities to sell masks quickly, this summer the online marketplace’s revenue grew due to an increase in marketplace transaction fees, according to a Deutsche Bank report. Despite the strong performance, analysts are conservative, waiting for more signs ETSY can outperform conditions in 2023. “While the 2Q EBITDA beat is most definitely notable, we believe it is unlikely that 2023 estimates are moving higher today and given an outlook that potentially calls for stiffening macro headwinds, we don’t grow incrementally more confident in estimates coming out of [Q2’s] earnings.”

More specifically, Deutsche Bank is looking for evidence that the company can add new buyers—and convince them to become repeat shoppers. ETSY lost 1 million active buyers between Q1 and Q2, and half of those losses “came from the habitual and repeat buyer cohorts.” Combined with ETSY’s “cautious stance on marketing investments in the quarter,” Deutsche Bank did not budge on the company’s future projections.

Moderna became a household name during COVID. As it turns out, it was also one of the summer’s top performers. Halfway through 2022, Moderna’s net income was $5.9 billion, a nearly $2 billion improvement from the same period last year. Its $4.7 billion in revenue for Q2 exceeded revenue from Q2 in 2021, leading to a stock price that shot up 30% since June 1.

It is no secret that the pandemic aided Moderna’s sky-high profits. For 2022, the company forecasts $21 billion worth in sales for its COVID-19 vaccine. A $1.74 billion U.S. order also serves …….

Source: https://fortune.com/2022/08/09/5-best-performing-stocks/

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