In a year where investing in stocks was more challenging than usual, finding winning stocks has been tough. Inflationary pressures coupled with rising interest rates, the war in Ukraine, and the general anxiety market participants felt throughout most of 2022, led investors to seek shelter from the bear market.
However, there were some stocks that thrived amidst volatility for business reasons but also from investors piling in, looking to get in on the action. Thus, Finbold has analyzed the data and highlighted three stocks that achieved over 200% gains year-to-date (YTD).
BP Prudhoe Bay Royalty Trust (NYSE: BPT)
BP Prudhoe Bay Royalty Trust is a pure play on rising oil prices with a 100% dividend payout mandate. The trust holds a 16.42% stake in an oil field on the North Slope of Alaska, and unlike most companies, its sole purpose is to collect royalty from an oil field and distribute it to shareholders.
Basically, BPT is just like a call option where the spot price is the average Crude oil price in the quarter, and the option exercise price is the chargeable costs each quarter the trust has for running operations.
Looking at the yearly performance, BPT did better than 99% of all other stocks YTD up 265%, with technical analysis indicating that a support level is at $14.72 and resistance between the range of $17.74 and $17.84, showing a decent setup pattern for investors looking to jump in.
SIGA Technologies (NASDAQ: SIGA)
After the FDA provided an update on the agency’s response to the monkeypox outbreak on July 29, the stock rallied to reach its all-time price, since SIGA’s monkeypox treatment TPOXX is already approved in the US, EU, and Canada for smallpox and monkeypox.
Considering the above, most of the price action seen in the stock and the staying power of the trend will depend on the developing monkeypox story and how serious the outbreak actually gets. The firm has $150 million in cash and a few drugs on the market, but the recent runup in price will depend on other factors.
In the last month, SIGA has been trading in a wide range between $11.52 and $25.28, with both the short-term and long-term trends being positive, YTD up 225.76%. Although SIGA has an excellent technical rating, it does not offer a high-quality setup at the moment, with a support line at $13.68.
Tarena International (NASDAQ: TEDU)
The firm offers adult vocational trading and coding, robotics, and other IT-centric training for K-12 kids in China, as its a Chinese tech company. The focus on these areas should help the firm avoid scrutiny from the Chinese regulators since it does not have the same issues that Ant Financial had.
On the other hand, the current issues and discussions regarding the possible delisting of numerous Chinese firms from US stock exchanges could have an effect on the rally seen in the stock so far.
Namely, TEDU is up YTD 222.95%, doing better than 98% of all other stocks, trading in the last month in the range between $4.36 and $5.99. The support zone ranges from $5.49 to $5.57, while the resistance line is at $6.07.
In short, past performance is not an indication of future performance; however, the above three stocks proved great performers YTD, bursting through the 200% gains, effectively doubling the funds investors put in their shares.
Momentum investing could be an approach for market participants looking to enter; yet, the risks with stocks that have run up so much need to be gauged before investing.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.