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Top 5 Stock Gainers of 2021 (Hint: They May Not Be What You Expect)

Despite the risks of the COVID health crisis and speculation that the Federal Reserve will tighten monetary policy faster than expected, 2021, even with two more trading days left, has been another strong year for US stocks In all areas. The benchmark index is up 27.4% year-to-date, heavy tech has gained 22.5%, while the 30 stocks are up 18.9% so far this year.

S&P, NASDAQ and Dow chart

With Wall Street closing the curtains shortly on a successful year, we’ve put together a list of five stocks that have led the charge in performance since the start of the year in 2021.

On Thursday we’ll post Wall Street’s Biggest Losers, so stay tuned.

1. AMC Entertainment

  • January 1 Opening price: $ 2.12
  • December 28 Closing price: $ 27.74
  • Earnings since the start of 2021: +1 207.5%
  • Market capitalization: $ 14.2 billion

AMC Entertainment Holdings (NYSE 🙂 took the market by storm in 2021, thanks to its “same stock” status driven by growing popularity among young traders on Reddit and Robinhood’s (NASDAQ 🙂 r / WallStreetBets forum.

Investors were also encouraged by signs of an upturn in sound, as moviegoers around the world flocked to its theaters in greater numbers amid easing restrictions linked to the pandemic.

So far this year, shares of the Leawood, Kansas-based movie operator have gained about 1,207%, far outpacing comparable returns in the S&P 500, making it the most market performance in 2021.

AMC daily chart

AMC stock, which started the year at $ 2.12 and climbed to a record high of $ 72.62 on June 2, ended Tuesday’s session at $ 27.74. At current levels, the world’s largest movie theater chain, which saw its shares collapse by 70% in 2020 amid the coronavirus pandemic, has a market capitalization of $ 14.2 billion.

Looking ahead, we don’t expect AMC to repeat its successful annual performance in 2022 as retail interest falters amid lingering concerns about the impact of the COVID variant. Omicron on its activities. This is because the InvestingPro models forecast a decline of around 34% over the next 12 months, bringing stocks closer to their fair value of $ 18.20.

InvestingPro AMC Fair Value Chart
InvestingPro AMC Fair Value Chart

Source: InvestingPro

2. GameStop

  • January 1 Opening price: $ 18.84
  • December 28 Closing price: $ 146.46
  • Earnings since the start of 2021: + 677.4%
  • Market capitalization: $ 11.1 billion

Like AMC, GameStop (NYSE 🙂 became a popular name among retail investors on Reddit’s WallStreetBets forum in 2021, sparking the epic “memes stocks” trading frenzy that has seen its stocks experience remarkable growth this year.

Widely regarded as the original darling of the WSB, shares of video game retailer Grapevine, Texas, climbed about 677% with just a few days left in the year, making it Wall’s second-best-performing title. Street.

In addition to benefiting from its unique status as a favorite of memes actions on social media, GameStop, led by former Chewy CEO Ryan Cohen, has taken steps to position itself in a digital age by boosting its commerce activity. electronic.

GME started trading at $ 18.84 on January 1 and hit a record high of $ 483.00 on January 28. It closed at $ 146.46 on Tuesday, giving the gaming retailer a valuation of $ 11.1 billion.

GME daily chart

With the “memes stock” receding in the rearview mirror, we expect GameStop’s rise to slow down in the New Year amid concerns surrounding its business outlook. The company’s most recent financial figures released on December 8 did not impress shareholders as they broadened significantly from the previous year.

Unsurprisingly, GME stock is currently overvalued according to the InvestingPro models and could experience a decline of around 28% over the next 12 months to reach its fair value of $ 105.82 per share.

GME InvestingPro Fair Value Chart
GME InvestingPro Fair Value Chart

Source: InvestingPro

3. Budget Advisory Group

  • January 1 Opening price: $ 37.30
  • December 28 Closing price: $ 210.31
  • Gains since the start of 2021: + 463.8%
  • Market capitalization: $ 11.8 billion

Avis Budget Group (NASDAQ 🙂 is a leading provider of rental cars in the commercial segment, serving business travelers at major airports around the world. Shares of the Parsippany, New Jersey-based company easily outperformed comparable broad market returns this year, benefiting from the reopening of the economy and the vaccine-induced return to normal.

Year-to-date, Avis stock has climbed 463.8%, making it the third-best-performing name on Wall Street in 2021. Shares have posted a one-day gain of over 100% on November 2, after Avis exceeded estimates for and revenue when releasing third quarter financial results and strengthening its share buyback plan.

CAR, which started trading at $ 37.30 on January 1 and hit an all-time high of $ 545.11 on November 2, settled at $ 210.31 last night. At current levels, the car rental specialist that operates the Avis brand, along with Budget Rent a Car, Budget Truck Rental and Zipcar, has a market cap of $ 11.8 billion.

CAR daily graph

Looking ahead, Avis remains a solid choice as the new year approaches as the car rental giant continues to recover from its pandemic crisis amid strong demand for rental vehicles thanks to a growing environment. improving trip.

According to the InvestingPro model, despite significant gains since the start of the year, CAR stock is currently undervalued and could register a gain of around 19% from current levels over the next 12 months at its fair. value of $ 249.59 / share.

InvestingPro CAR fair value chart
InvestingPro CAR fair value chart

Source: InvestingPro

4. Successful holdings

  • January 1 Opening price: $ 40.75
  • December 28 Closing price: $ 148.97
  • Gains since the start of 2021: + 265.5%
  • Market capitalization: $ 12.2 billion

Upstart Holdings (NASDAQ :), which uses artificial intelligence tools to assess personal loan applications from banks and is widely regarded as one of the leading online lending markets, has had an astonishing year. At one point, shares of the San Mateo, Calif., Based AI lending platform operator, which held its initial public offering in December 2020, rose more than 800%. . But, a massive sell-off in the high-growth tech sector cut some of the wind in the high-flying sails.

Despite recent volatility, Upstart shares are up 265.5% year-to-date, making it the fourth-best-performing stock of 2021, thanks to growing demand for its based credit checking services. AI.

UPST started the year at $ 40.75 and hit a record high of $ 401.49 on October 15. He finished Tuesday’s session at 148.97. At current levels, the fintech company has a market cap of $ 12.2 billion.

UPST Daily Chart

Upstart appears ready for the sequel in 2022. The current operating environment is fueling demand from smaller banks and credit unions for its innovative services that make it easier to determine the creditworthiness of a potential borrower.

In fact, InvestingPro models indicate an almost 4% increase in UPST shares over the next 12 months, bringing the shares closer to their fair value of $ 155.05.

InvestingPro UPST Fair Value Chart
InvestingPro UPST Fair Value Chart

Source: InvestingPro

5. The energy of Devon

  • January 1 Opening price: $ 15.57
  • December 28 Closing price: $ 44.50
  • Earnings since the start of the year: + 185.8%
  • Market capitalization: $ 30.1 billion

One of the nation’s largest independent shale oil and gas producers, Devon Energy (NYSE 🙂 has distinguished itself this year in the booming energy sector, reaping the benefits of rising oil prices. energy and improved global demand.

Shares of the Oklahoma City, Oklahoma-based company have jumped about 186% year-to-date, with investors encouraged by continued efforts to return more money to shareholders in the form of higher dividend payments and share buybacks.

DVN lost 37% in 2020 amid the coronavirus pandemic, but closed at $ 44.50 last night, given its recent five-year high of $ 45.56 reached on November 24. At current levels, the energy company – which has outperformed other notable names in the industry, such as ExxonMobil (NYSE 🙂 and Chevron (NYSE:) – has a market cap of $ 30.1 billion.

DVN Daily Chart

Due to its strong year-to-date gains, Devon remains one of the top names to hold in 2022 for investors who want to play the ongoing recovery in the US oil and gas sector. The low-cost, producing company stands ready to continue to benefit from its excellent Permian operations, while taking advantage of high oil and gas prices, which will help fuel future profits and growth.

A review of the quantitative models in InvestingPro shows us that an almost 20% rise 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
InvestingPro DVN Fair Market Value Chart

Source: InvestingPro

On Thursday, we’ll be posting the top five stock market losers for 2021.