2022’s Best and Worst Dow Stocks: A Year of Surprises

As 2022 draws to a close, it’s time to reflect on the best and worst-performing stocks within the Dow Jones Industrial Average for the year. The year has been marked by numerous economic challenges and surprises, and the stock market was no exception. In this article, we’ll explore the top-performing and underperforming Dow stocks of 2022 and the factors that influenced their outcomes.

Top Performers:

Goldman Sachs (GS): Goldman Sachs led the Dow in 2021 with an impressive year, benefiting from a strong investment banking environment, surges in trading volumes, and robust demand for financial services.

Salesforce (CRM): The cloud-based software company, Salesforce, experienced substantial growth as companies accelerated their digital transformation efforts in response to the pandemic.

Boeing (BA): Boeing navigated a challenging year due to its ongoing issues with the 737 MAX and the pandemic’s impact on air travel. However, increased demand for defense-related products and the gradual recovery in commercial aviation contributed to its strong performance.

Underperformers:

Walgreens Boots Alliance (WBA): Walgreens struggled in 2021 due to challenges in the retail pharmacy sector, with Amazon’s entry into the prescription drug market posing a threat to traditional pharmacies.

Amgen (AMGN): Despite being a leader in biotechnology, Amgen faced setbacks with its osteoporosis drug and struggled to maintain growth, resulting in a lackluster year.

Dow Inc. (DOW): Dow Inc., a major chemical company, had to grapple with supply chain disruptions and volatility in raw material costs, which affected its performance throughout the year.

Factors Influencing Performance:

Several key factors influenced the performance of these stocks in 2021:

Economic Recovery: The gradual economic recovery following the pandemic spurred growth in various sectors. Companies that capitalized on this rebound tended to perform well.

Technology and Digital Transformation: Businesses that were agile in adapting to the digital world thrived, and technology stocks often outperformed.

Pandemic Impact: Some sectors, like pharmaceuticals and retail, faced challenges as consumer behavior shifted and supply chains were disrupted.

Global Events: Geopolitical events, trade tensions, and supply chain disruptions played a significant role in determining the year’s winners and losers.

Final Thoughts:

2022 was a year filled with unexpected challenges and opportunities, and the stock market reflected this volatility. The performance of Dow stocks in 2021 underscores the importance of adaptability, resilience, and innovation in today’s dynamic business environment. As we move into 2022, investors will continue to monitor these factors and adapt their strategies accordingly, as the only certainty in the stock market is its inherent unpredictability.