In this article, we will discuss the 15 best performing Dow stocks in 2022.
The Dow Jones Industrial Average is a stock market index that represents the performance of 30 large, publicly traded companies listed on the New York Stock Exchange (NYSE) and the NASDAQ. The Dow Jones Industrial Average is one of the oldest and most widely followed stock market indices in the world. It was first published in 1896 and has since become a benchmark for the performance of the U.S. stock market. The index is calculated based on the stock prices of the 30 companies that make up the index, with each company’s weight in the index determined by its market capitalization (the total value of its outstanding shares).
The Dow Jones Industrial Average is often used as a barometer of the overall health of the U.S. stock market. The index has provided a total return of -9.3% YTD (including dividends reinvested), which reflects the worsening health of the US economy in 2022 as the FED continues to raise interest rates. The current year will mark a year of negative performance after three consecutive years of strong positive returns in 2019, 2020, and 2021.
The 30 component stocks of the DJIA are selected by the editors of the Wall Street Journal, and they are chosen based on the overall importance of the companies to the economy and the stock market. The index is reconstituted often as new companies are added while the older ones get replaced. The most recent reconstitution in the index occurred in 2020 when companies like Amgen Inc. (NASDAQ:AMGN), Salesforce, Inc. (NYSE:CRM), and Honeywell International Inc. (NASDAQ:HON) were added to the index, while Exxon Mobil Corporation (NYSE:XOM), Raytheon Technologies Corporation (NYSE:RTX) and Pfizer Inc. (NYSE:PFE) were removed. Interestingly, the companies removed from the index were amongst the top-performing firms in 2022, with Exxon Mobil Corporation (NYSE:XOM), Raytheon Technologies Corporation (NYSE:RTX), and Pfizer Inc. (NYSE:PFE) providing a total return of 84.60%, 18.08% and -9.39% respectively, outperforming the broader market. Whereas newly added provided mixed returns in 2022 with Amgen Inc. (NASDAQ:AMGN), Salesforce, Inc. (NYSE:CRM), and Honeywell International Inc. (NASDAQ:HON) providing a total return YTD return of 21.01%, -49.07%, and 4.67% respectively.
The DJIA has outperformed other market indices like the S&P 500 and the Nasdaq in 2022. The Dow Jones Industrial Average has provided a YTD total return of -9.3% compared with -34.4% provided by the Nasdaq and -18.0% provided by the S&P 500. The Defensive sector which comprises 29.49% of the total weightage of the Dow, may be a reason why the index performed better than others in the current year. The top three constituents of the Dow Jones Industrial Average Index are UnitedHealth Group Inc, The Goldman Sachs Group Inc, and The Home Depot Inc constituting 10.52% and 6.90%, and 6.31% of the index.
Our Methodology
We have picked the 15 Best Performing Dow Stocks in 2022 on a total-return basis and have ranked them in ascending order of their returns. Moreover, we have also mentioned the hedge fund holding position in the stocks among the 920 hedge funds tracked by Insider Monkey.
15 Best Performing Dow Stocks in 2022
15. Dow Inc. (NYSE:DOW)
YTD Total Return as of December 25, 2022: -5.83%
Number of Hedge Fund Holders: 43
Headquartered in Midland, Michigan, Dow Inc. (NYSE:DOW) is a multinational chemical company offering a wide range of chemical and material products, including plastics, coatings, and specialty chemicals. Dow Inc. (NYSE:DOW)’s business is organized into three main segments: Packaging and Specialty Plastics, Infrastructure Solutions, and Performance Materials and Coatings. The Packaging and Specialty Plastics segment include the development and sale of packaging and specialty plastic products, such as films, sheets, and adhesives. The Infrastructure Solutions segment includes the development and sale of products and solutions for the construction, transportation, and energy infrastructure markets, such as insulation, roofing, and sealants. The Performance Materials and Coatings segment include the development and sale of performance materials and coatings products, such as chemicals, resins, and pigments.
On October 21, 2022, Frank Mitsch, an analyst at Fermium Research, reduced his price target on Dow Inc. (NYSE:DOW) to $50 while keeping a Buy rating on the stock. The analyst’s believes that the company’s current dividend yield of 6.2% is safe.
In addition to Dow Inc. (NYSE:DOW), The Travelers Companies, Inc. (NYSE:TRV), Merck & Co., Inc. (NYSE:MRK), Chevron Corporation (NYSE:CVX) are included in our list of 15 best performing Dow stocks in 2022.
According to Insider Monkey’s database, 43 hedge funds owned stakes in the company at the end of the September quarter. Pzena Investment Management held the biggest stake in Dow Inc. (NYSE:DOW) at the end of Q3 2022.
14. The Procter & Gamble Company (NYSE:PG)
YTD Total Return as of December 25, 2022: -4.38%
Number of Hedge Fund Holders: 69
Headquartered in Cincinnati, Ohio, The Procter & Gamble Company (NYSE:PG) is one of the world’s largest consumer goods companies. The company was founded in 1837 and offers a wide range of household and personal care products, including laundry detergent, diapers, and beauty products. The Procter & Gamble Company (NYSE:PG)’s business is organized into three main segments: Beauty, Health and Grooming, and Household Care.
On November 22, 2022, Greg Badishkanian, an analyst at Wolfe Research, started covering The Procter & Gamble Company (NYSE:PG) with a price target of $156 and an Outperform rating on the company’s stock. The analyst believes that the company’s investments should continue to increase wallet share for the company.
As per Insider Monkey’s database, 69 hedge funds owned stakes in The Procter & Gamble Company (NYSE:PG) at the end of the third quarter. Bridgewater Associates remained the leading stakeholder of the company at the end of Q3 2022.
13. Visa Inc. (NYSE:V)
YTD Total Return as of December 25, 2022: -4.29%
Number of Hedge Fund Holders: 165
Visa Inc. (NYSE:V) is a multinational financial services company and is one of the world’s largest payment processing companies. Visa Inc. (NYSE:V)’s business is organized into two main segments: Client Services and Data Processing. The Client Services segment includes the sale of payment processing and related services to financial institutions, merchants, and other clients. The Data Processing segment includes the operation of Visa’s payment processing network, as well as the sale of data and analytics products.
On October 27, 2022, James Fotheringham, an analyst at BMO Capital, reduced his price target on Visa Inc. (NYSE:V) to $241 while keeping an Outperform rating on the stock. The analyst is lowering his FY23 EPS estimate to $8.18 but is still bullish on the stock because it provides protection from inflation and recession.
At the end of Q3 2022, 165 hedge funds in Insider Monkey’s database were long Visa Inc. (NYSE:V). TCI Fund Management remained the leading stakeholder of the company at the end of Q3 2022.
12. Walmart Inc. (NYSE:WMT)
YTD Total Return as of December 25, 2022: 0.92%
Number of Hedge Fund Holders: 68
Headquartered in Bentonville, Arkansas, Walmart Inc. (NYSE:WMT) is a multinational retail company with more than 11,500 stores in 27 countries. Walmart Inc. (NYSE:WMT)’s business is organized into three main segments: Walmart U.S., Walmart International, and Sam’s Club. The Walmart U.S. segment includes the operation of Walmart stores and e-commerce websites in the United States. The Walmart International segment includes the operation of Walmart stores and e-commerce websites in other countries. The Sam’s Club segment includes the operation of membership-only warehouse clubs in the United States.
On December 19, 2022, Karen Short, an analyst at Credit Suisse, started covering Walmart Inc. (NYSE:WMT) and increased her price target to $170 while keeping an Outperform rating on the stock. The analyst believes that Walmart Inc. (NYSE:WMT) is a well-positioned brand in an uncertain macro environment as it has been increasing its market share by significant amounts since early 2021.
As per Insider Monkey’s database, 68 funds remained bullish on the company at the end of Q3 2022. Fisher Asset Management had the biggest long position on the company’s shares at the end of the third quarter.
11. McDonald’s Corporation (NYSE:MCD)
YTD Total Return as of December 25, 2022: 2.05%
Number of Hedge Fund Holders: 53
McDonald’s Corporation (NYSE:MCD) is a multinational fast food company with more than 38,000 restaurants in over 100 countries. McDonald’s Corporation (NYSE:MCD)’s business is organized into four main segments: the United States, International Lead Markets, High Growth Markets, and Foundational Markets & Corporate.
On December 21, 2022, Andy Barish, an analyst at Jefferies, increased his price target on McDonald’s Corporation (NYSE:MCD) to $315 while keeping a Buy rating on the company’s stock. The analyst is bullish on the U.S. restaurant and food service distribution sector heading into 2023. According to the analyst, full-service restaurants will remain in demand, and any possible decline in sales will be balanced by cost management and reduced food inflation.
53 hedge funds were long on the company’s stock at the end of the third quarter, according to Insider Monkey’s database. Bridgewater Associates had the biggest long position in the company at the end of Q3 2022.
10. Honeywell International Inc. (NASDAQ:HON)
YTD Total Return as of December 25, 2022: 4.67%
Number of Hedge Fund Holders: 53
Headquartered in Morris Plains, New Jersey, Honeywell International Inc. (NASDAQ:HON) is one of the world’s largest technology and manufacturing companies. Honeywell International Inc. (NASDAQ:HON) provides a wide range of products and services, including aerospace, industrial, and building technologies, as well as performance materials and technologies. Honeywell International Inc. (NASDAQ:HON)’s business is organized into four main segments: Aerospace, Home and Building Technologies, Safety and Productivity Solutions, and Performance Materials and Technologies.
On December 1, 2022, Julian Mitchell, an analyst at Barclays, increased his price target on Honeywell International Inc. (NASDAQ:HON) to $229 while keeping an Overweight rating on the stock. The analyst is optimistic about U.S. residential construction going into 2023.
As per Insider Monkey’s database, 53 hedge funds remained bullish on Honeywell International Inc. (NASDAQ:HON) at the end of Q3 2022. Diamond Hill Capital came out to be the biggest holder of the company’s shares at the end of the quarter.
9. Johnson & Johnson (NYSE:JNJ)
YTD Total Return as of December 25, 2022: 6.47%
Number of Hedge Fund Holders: 85
Johnson & Johnson (NYSE:JNJ) is a multinational healthcare company offering a wide range of healthcare products and services, including pharmaceuticals, medical devices, and consumer healthcare products. Johnson & Johnson (NYSE:JNJ)’s business is organized into three main segments: Pharmaceuticals, Medical Devices, and Consumer Health. The Pharmaceuticals segment includes the research, development, and sale of prescription drugs and vaccines. The Medical Devices segment includes the design, development, and sale of medical devices and diagnostic products. The Consumer Health segment includes the development and sale of over-the-counter healthcare products, including personal care, baby care, and oral care products.
On December 12, 2022, Joanne Wuensch, an analyst at Citi, increased her price target on Johnson & Johnson (NYSE:JNJ) to $205 while keeping a Buy rating on the stock. The analyst believes that the North American medical supplies and technology group will still face many difficulties heading into 2023. However, these difficulties will alleviate in the second half of the year, reducing the pressure on the operating margins.
According to Insider Monkey’s database, 85 hedge funds owned stakes in the company at the end of the September quarter. Fisher Asset Management held the biggest stake in Johnson & Johnson (NYSE:JNJ) at the end of Q3 2022.
8. UnitedHealth Group Incorporated (NYSE:UNH)
YTD Total Return as of December 25, 2022: 7.17%
Number of Hedge Fund Holders: 110
UnitedHealth Group Incorporated (NYSE:UNH) is a multinational healthcare company offering a wide range of healthcare products and services, including insurance, healthcare delivery, and healthcare technology. UnitedHealth Group Incorporated (NYSE:UNH)’s business is organized into four main segments: UnitedHealthcare, Optum, Healthcare Services, and Healthcare Innovation. The UnitedHealthcare segment includes the underwriting and administration of healthcare insurance plans for individuals, families, and employer groups. The Optum segment includes the delivery of healthcare services and the provision of healthcare technology solutions. The Healthcare Services segment includes the delivery of healthcare services through clinics and surgery centers. The Healthcare Innovation segment includes the development and commercialization of healthcare products and services.
On October 17, 2022, Ben Hendrix, an analyst at RBC Capital, increased his price target on UnitedHealth Group Incorporated (NYSE:UNH) to $592 while keeping an Outperform rating on the company’s stock. According to the analyst, early indications going into 2023 point to cautious guidance that also leaves room for normalizing inpatient patterns, inflationary costs, and other factors like the impending flu season.
At the end of Q3 2022, 110 hedge funds in Insider Monkey’s database were long UnitedHealth Group Incorporated (NYSE:UNH). GQG Partners remained the leading stakeholder of the company at the end of Q3 2022.
7. The Coca-Cola Company (NYSE:KO)
YTD Total Return as of December 25, 2022: 10.97%
Number of Hedge Fund Holders: 59
Headquartered in Atlanta, Georgia, The Coca-Cola Company (NYSE:KO) is a multinational beverage company and is one of the world’s largest producers of non-alcoholic beverages, with a portfolio of more than 500 brands that include such well-known names as Coca-Cola, Diet Coke, Fanta, and Sprite.
On October 26, 2022, Peter Grom, an analyst at UBS, increased his price target on The Coca-Cola Company (NYSE:KO) to $68 while keeping a Buy rating on the stock. According to the analyst, the company’s risk/reward seems commendable as the stock has the potential for solid revenue growth.
59 hedge funds were long on the company’s stock at the end of the third quarter, according to Insider Monkey’s database. Berkshire Hathaway had the biggest long position in the company at the end of Q3 2022.
6. International Business Machines Corporation (NYSE:IBM)
YTD Total Return as of December 25, 2022: 11.3%
Number of Hedge Fund Holders: 40
Headquartered in Armonk, New York, International Business Machines Corporation (NYSE:IBM) is one of the world’s largest technology companies. International Business Machines Corporation (NYSE:IBM) provides a wide range of technology products and services, including hardware, software, and consulting, as well as cloud and artificial intelligence (AI) solutions. The company’s business is organized into five main segments: Cloud & Cognitive Software, Global Business Services, Global Technology Services, Systems, and Global Financing.
On October 19, 2022, International Business Machines Corporation (NYSE:IBM) reported its third-quarter results. The company’s third-quarter revenue stood at $14.1 billion, beating market expectations by $550 million. The Normalized EPS was reported at $1.81, beating market expectations by $0.01.
According to Insider Monkey’s database, 40 hedge funds owned stakes in the company at the end of the September quarter. Arrowstreet Capital held the biggest stake in International Business Machines Corporation (NYSE:IBM) at the end of Q3 2022.
5. Caterpillar Inc. (NYSE:CAT)
YTD Total Return as of December 25, 2022: 18.73%
Number of Hedge Fund Holders: 43
Headquartered in Illinois, United States, Caterpillar Inc. (NYSE:CAT) is one of the world’s largest manufacturers of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Caterpillar Inc. (NYSE:CAT)’s business is organized into three main segments: Construction Industries, Resource Industries, and Energy & Transportation.
On December 19, 2022, Stanley Elliott, an analyst at Stifel, increased his price target on Caterpillar Inc. (NYSE:CAT) to $271 while keeping a Buy rating on the stock. The analyst is anticipating late-cycle trends and a sluggish pace in housing. However, he believes that the non-residential sector will accelerate, and the overall price/cost situation will improve.
At the end of Q3 2022, 43 hedge funds in Insider Monkey’s database were long Caterpillar Inc. (NYSE:CAT). Bill & Melinda Gates Foundation Trust remained the leading stakeholder of the company at the end of Q3 2022.
4. Amgen Inc. (NASDAQ:AMGN)
YTD Total Return as of December 25, 2022: 21.01%
Number of Hedge Fund Holders: 53
Amgen Inc. (NASDAQ:AMGN) is a multinational biopharmaceutical company and is one of the largest biotechnology companies in the world. Amgen Inc. (NASDAQ:AMGN)’s business is organized into three main segments: Oncology, Inflammation & Nephrology, and Neuroscience. The Oncology segment includes the development and sales of cancer therapies. The Inflammation & Nephrology segment includes the development and sales of therapies for inflammatory and kidney diseases. The Neuroscience segment includes the development and sales of therapies for neurological conditions.
On December 12, 2022, Christopher Raymond, an analyst at Piper Sandler, increased his price target on Amgen Inc. (NASDAQ:AMGN) to $299 while keeping an Overweight rating on the stock after the company reached a deal to acquire Horizon Therapeutics Public Limited Company (NASDAQ:HZNP). The analyst believes that this deal will result in substantial profit growth starting in 2024.
As per Insider Monkey’s database, 53 hedge funds had stakes in Amgen Inc. (NASDAQ:AMGN) at the end of the third quarter. Two Sigma Advisors remained the leading stakeholder in the company at the end of Q3 2022.
3. The Travelers Companies, Inc. (NYSE:TRV)
YTD Total Return as of December 25, 2022: 23.71%
Number of Hedge Fund Holders: 37
Headquartered in New York City, The Travelers Companies, Inc. (NYSE:TRV) is one of the largest property and casualty insurance companies in the United States. It offers a wide range of insurance products, including personal, business, and financial insurance, as well as risk management services. The Travelers Companies, Inc. (NYSE:TRV)’s business is organized into three main segments: Business and International Insurance, Bond and Specialty Insurance, and Personal Insurance.
On October 20, 2022, C. Gregory Peters, an analyst at Raymond James, increased his price target on The Travelers Companies, Inc. (NYSE:TRV) to $200 after the company reported better-than-estimated results for Q3 2022. The analyst currently keeps a Strong Buy rating on the company’s stock.
37 hedge funds were long on the company’s stock at the end of the third quarter, according to Insider Monkey’s database. First Eagle Investment Management had the biggest long position in the company at the end of Q3 2022.
2. Merck & Co., Inc. (NYSE:MRK)
YTD Total Return as of December 25, 2022: 50.61%
Number of Hedge Fund Holders: 82
Merck & Co., Inc. (NYSE:MRK) is a global healthcare company based in Kenilworth, New Jersey. Merck & Co., Inc. (NYSE:MRK) was founded in 1891 as a chemical company but has since evolved into a leading pharmaceutical and healthcare company. The company’s business is organized into three main segments: Pharmaceutical, Animal Health, and Healthcare Services.
On December 20, 2022, Carter Gould, an analyst at Barclays, increased his price target on Merck & Co., Inc. (NYSE:MRK) to $128 while keeping an Overweight rating on the company’s stick. The analyst believes that the company will be able to achieve high levels of subcutaneous use in the future.
At the end of Q3 2022, 82 hedge funds in Insider Monkey’s database were long Merck & Co., Inc. (NYSE:MRK). Fisher Asset Management remained the leading stakeholder of the company at the end of Q3 2022.
1. Chevron Corporation (NYSE:CVX)
YTD Total Return as of December 25, 2022: 56.64%
Number of Hedge Fund Holders: 66
Headquartered in San Ramon, California, Chevron Corporation (NYSE:CVX) is one of the world’s largest integrated energy companies, with operations in more than 180 countries. Chevron Corporation (NYSE:CVX)’s business is organized into three main segments: Upstream, Downstream, and Chemicals. The Upstream segment includes the exploration, development, and production of oil and natural gas, as well as the transportation and storage of those energy sources. The Downstream segment includes the refining, marketing, and distribution of oil, natural gas, and other energy products. The Chemicals segment includes the manufacturing and marketing of petrochemicals, polymers, and specialty chemicals.
On November 11, 2022, Ryan Todd, an analyst at Piper Sandler, increased his price target on Chevron Corporation (NYSE:CVX) to $206 from $186 while keeping an Overweight rating on the stock. The analyst believes that the company’s third-quarter results have boosted the integrated oil macro outlook for 2023.
As per Insider Monkey’s database, 66 hedge funds remained bullish on Chevron Corporation (NYSE:CVX) at the end of Q3 2022. Berkshire Hathaway came out to be the biggest holder of the company’s shares at the end of the quarter.
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Disclosure: None. 15 Best Performing Dow Stocks in 2022 is originally published on Insider Monkey.
