Connect with us

Markets

The U.S. Stock Market: Best and Worst Performing Sectors in 2022

Published

on

Infographic showing stock market winners and losers in 2022

The U.S. Stock Market: Best and Worst Performing Sectors in 2022

The markets in 2022 were characterized by a lot more pain than gain.

In the U.S., the Fed hiked interest rates seven times. Globally, central banks raised interest rates for the first time in years in order to combat surging inflation. The Russian invasion of Ukraine and China’s COVID Zero ambitions threw markets and supply chains into further disarray.

To recap the past 12 months, we’ve created an augmented version of the classic FinViz treemap, showing the final numbers posted for major U.S.-listed companies, sorted by sector and industry.

Below, we look closer at the majority of companies that finished the year in the red, and the few industries and companies that beat the odds and saw positive growth.

The Winners

In this year’s stock market visualization, there’s a lot more red than green. That said, there were winners to be found, even during this turbulent year. Here are a few of them:

Energy

Looking at the visualization above, it’s easy to see which sector dominated this year. In fact, energy was the only sector to see positive performance, with most major energy stocks seeing double-digit growth.

In particular, ExxonMobil had a monster year. The energy giant’s record Q3 profit came close to matching Apple’s (no small feat), and the company reportedly gave out hefty salary bumps and stock options to staff. This success didn’t go unnoticed as Exxon, and industry peers like Chevron, were excoriated for setting profit records while consumers felt the squeeze at the gas pump.

Healthcare (Sort of)

The healthcare sector was a mixed bag this year, but some winners did emerge.

Large cap pharmaceutical companies managed to stay strong, even as the markets languished. Merck led the way with +45% growth this year, with Novo Nordisk, AstraZeneca, AbbVie, and Eli Lilly (+32%) also posting double-digit growth. For the latter two companies, this is a continuation of a long-term trend. Over the past decade, AbbVie is up over 600%, and Eli Lilly is up more than 800%.

Pfizer (-12%) is the notable red spot in a green industry. The company had such a strong couple of years that the decline in 2022 is not surprising. It’s worth noting that the company still has billions in cash, and its oral antiviral tab could become a big sales driver over the coming year.

The big three companies in the medical distribution industry—McKesson (+50%), Cardinal (+47%), and AmerisourceBergen (+24%)—also had a solid year.

Big Aerospace and Defense Companies

Major defense and aerospace stocks—with the exception of Boeing—outperformed the broader market in 2022.

Northrop Grumman (+41%) saw healthy gains, powered by its space segment. The company will be busy building rocket boosters that will help put Amazon’s 3,000+ communications satellites into orbit in coming years.

Lockheed Martin (+38%) capped off a strong year with a cool half a billion dollar contract from the U.S. Government.

The Losers

2022 was the worst year for the S&P 500 since the 2008 financial crisis. While the markets usually finish up, down years can happen. Last year was one of those rare times.

Unlike the winning side of the equation, there’s no lack of material to cover in this section. We’ve scanned the sea of red for sectors to dig into.

Technology

The tech sector, from semiconductors to software, saw steep declines across the board last year.

The list below, which shows the largest declines in the S&P 500, puts into perspective just how much value was wiped out in the tech sector this year.

CompanyTickerMarket Cap Change (2022)% Change (2022)
AppleAAPL-$846 billion-27%
AmazonAMZN-$834 billion-50%
MicrosoftMSFT-$737 billion-29%
TeslaTSLA-$672 billion-65%
Meta PlatformsMETA-$464 billion-64%
NvidiaNVDA-$376 billion-50%
PayPalPYPL-$140 billion-62%
NetflixNFLX-$136 billion-51%
Walt DisneyDIS-$123 billion-44%
SalesforceCRM-$118 billion-48%

In absolute terms, Apple is the biggest loser on the year, shedding $846 billion from its market cap. Meta, which is in the midst of building out its vision for a “metaverse”, also saw one of the biggest declines, shedding $464 billion in market cap.

Semiconductor stocks, like NVIDIA (-50%) and TSMC (-38%) were hit particularly hard.

The so-called crypto winter, collapse of NFT transactions, and even bigger collapse of FTX, spelled tough times for any company that specialized in crypto. Although Coinbase avoided any major controversies last year, its stock was still hammered, falling 86% on the year.

Automakers

Last year posed many challenges for U.S. automakers.

Macroeconomic issues aside, simply being able to roll new vehicles off the assembly line proved to be a challenge as supply chain issues persisted.

Tesla saw 40% growth in deliveries last year, but that was not enough to satisfy investors. The automaker’s stock has been plummeting since September, and eventually finished down 65% on the year.

Other pure-play EV companies fared even worse. Rivian and Lucid saw massive 90%+ declines over the course of last year.

Real Estate

Real Estate Investment Trust (REIT) stocks trailed the overall market due to soaring interest rates and uncertain economic circumstances.

This was in stark contrast to 2021, when REITs had one of their best-ever performances.

Though most of this sector is made up of REITs, WeWork is also in the mix. The previously high-flying company saw one of the steepest declines, finishing the year down more than 80%.

The Year Ahead

Many experts believe that a recession is coming, with severity and duration being the main topics of debate.

Other questions remain as well. Will the tech sector continue mass layoffs going into 2023? Will supply chain issues persist? Will offices slowly spring back to life, or has remote work drastically altered the commercial real estate equation? Will the conflict in Ukraine continue, or come to a resolution?

If there’s one thing we’ve learned over the past three years, it’s that predicting the future is anything but easy.

🔮🔮🔮
Speaking of predictions, we’re creating the ultimate cheatsheet for 2023.
See what hundreds of experts are predicting for 2023 with our Global Forecast Series.
Click for Comments

Retail

The World’s Top Retail Companies, by Domestic Revenue

As price pressures and e-commerce reshape shopping behaviors, we show the top retail companies by domestic revenue around the world.

Published

on

This circle graphic shows the world's top retail companies by domestic revenue.

The World’s Top Retail Companies, by Domestic Revenue

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

The retail sector plays a vital role in powering economies, contributing $5.3 trillion annually to America’s GDP alone.

Moreover, the industry is America’s biggest private-sector employer, responsible for one of every four jobs, or 55 million employees. Yet in today’s challenging consumer environment, retailers are facing higher e-commerce penetration and inflationary pressures—across an industry notoriously known for razor-thin margins.

This graphic shows the world’s top retail companies by domestic revenue, based on data from the National Retail Federation.

Methodology

To be included in the rankings, companies must engage in a goods-for-consumer resale business accessible to the public and have direct selling operations in a minimum of three countries.

The rankings include both publicly and private companies, and are based on the most recent 52-week period analyzed by the National Retail Federation between January and March 2024. All revenue figures were converted to U.S. dollars.

Ranked: The Top 10 Global Retailers by Domestic Sales

Here are the leading retailers worldwide based on domestic sales as of 2023:

RankingRetailerDomestic Retail Revenue
(USD)
Share of Total Retail RevenueHeadquarters
1Walmart$532.3B85%🇺🇸 U.S.
2Amazon.com$250.0B70%🇺🇸 U.S.
3Costco$175.4B75%🇺🇸 U.S.
4The Home Depot$142.0B94%🇺🇸 U.S.
5Walgreens Boots Alliance$105.1B89%🇺🇸 U.S.
6Alibaba$91.5B97%🇨🇳 China
7Apple$70.9B87%🇺🇸 U.S.
8Aeon$64.3B93%🇯🇵 Japan
9Schwarz Group$56.5B32%🇩🇪 Germany
10Rewe$55.5B75%🇩🇪 Germany

Walmart towers ahead as the world’s largest retailer with $532 billion in domestic revenue—more than Amazon.com and Costco combined.

Known for its everyday low prices, Walmart achieves a competitive advantage through pricing goods approximately 25% cheaper than traditional retail competitors. Overall, groceries make up more than half of total sales. While its main customer base is often low and middle-income shoppers, the retail giant is seeing a surge in sales from higher-income customers as shoppers seek out lower grocery prices.

E-commerce giant, Amazon, is the second-biggest retailer globally, commanding nearly 40% of online retail sales in America. Since 2019, the number of Amazon employees has grown from 800,000 to over 1.5 million in 2023.

While the company has tried to introduce online grocery platforms to the market, it has largely fallen flat given its clunky system in a highly competitive market.

Like Amazon, China’s e-commerce juggernaut, Alibaba, stands as a leading global retailer. Overall, 97% of revenues were generated domestically through online marketplaces Taobao and Tmall. In recent years, the company has focused on international expansion, delivering products to 11 markets including America, in just five days.

Continue Reading
Voronoi, the app by Visual Capitalist. Where data tells the story. Download on App Store or Google Play

Subscribe

Popular