Despite the recent bout of volatility, Wall Street's major averages are trading near their all-time highs as we head into the end of the year, with the benchmark S&P 500 index hovering around the 4,700 level.
Most of the attention in this year's rally has been focused on popular large-cap tech stocks such as Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOGL ) and Tesla (NASDAQ:TSLA), the great animators of the market.
However, today we have chosen to take a closer look at three non-tech stocks that have shown surprising gains, significantly outperforming the S&P 500 in 2021.
1. Devon Energy
Devon Energy, one of the largest independent oil and gas producers in the US, has been a standout this year in the burgeoning energy space.
The Oklahoma City, Oklahoma-based company has thrived in 2021, reaping the benefits of high energy prices and a recovery in global demand. So far this year, Devon's shares have nearly tripled, up roughly 190% and easily outpacing the S&P 500's 25% gain, making it one of the best-performing companies in the market this year.
Shares of DVN - which lost 37% in 2020 amid the coronavirus pandemic - ended Tuesday's session at $45.11, in view of its recent five-year high of $45.56 hit on November 24.
At current levels, the energy company - which has outperformed other notable names in the sector including ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX) and ConocoPhillips - has a market capitalization of $30.5 billion.
Devon owns and operates key drilling assets in the Delaware Basin, Eagle Ford, Powder River Basin, Anadarko Basin, as well as the STACK shale formation in Oklahoma. On November 2, the company posted extraordinary third-quarter profit, driven by strong energy prices and rising global demand.
The low-cost oil and gas producer said it earned $1.08 per share, improving substantially from a loss of $0.04 per share in the rough period a year earlier. Revenue, meanwhile, increased nearly 225% from a year earlier, to $3.47 billion.
Despite strong earnings so far this year, Devon continues to look attractive heading into 2022, considering its ongoing efforts to return more cash to shareholders in the form of higher dividend payouts and share buybacks.
Devon's board recently authorized a $1 billion share buyback program and declared a fixed plus variable dividend of $0.84 per share, an increase of more than 120% from the previous quarter's payout. It also offers one of the highest dividend yields of any member of the S&P 500, at 7.45%.
2. Macy's (NYSE:M)
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Macy's has been one of this year's biggest gainers in retail as the department store giant has benefited from a vaccine-driven return to normal as consumers return to malls in greater numbers. amid fading fears over COVID.
Investors have also been encouraged by strong growth numbers for Macy's burgeoning e-commerce business, as well as a rapid recovery in sales across all three of its brands, including its namesake chain of stores, as well as at Bloomingdale's and retailer Bluemercury luxury beauty kit.
Shares of the iconic department store chain have outperformed the S&P 500 by a wide margin in 2021, soaring almost 148% with just a few weeks left in the year.
Shares of M - which fell nearly 34% in 2020 as the pandemic forced most of its stores to close - closed yesterday at $27.86, giving the New York-based retailer an $8.3 billion valuation. . The shares recently hit a three-year high of $37.95 on Nov. 18.
In a sign of how well Macy's business has recovered from the COVID-19 health scare, the retailer has reported earnings that have beaten Wall Street's profit and revenue forecasts in every quarter this year as it has successfully won back old customers and found new buyers.
Macy's said it added 4.4 million new customers in the third quarter, while comparable sales growth -- which includes sales both online and at stores open for at least a year -- soared 37.2% from a year ago. .
Digital sales, which have been Macy's bright spot, saw annualized growth of 19% in the third quarter and 49% in two years. The company said its online business accounted for 33% of total sales, up 10% from 2019 levels.
With the peak holiday shopping season on the horizon, America's largest department store chain should continue to enjoy a boost to its already stellar financial performance heading into the new year.
3. Nucor
Nucor, the largest steelmaker in the United States, has been one of the top performers in the basic materials sector this year, thanks to a powerful combination of rising steel prices and rising demand for products. steelworkers.
Shares of the Charlotte, North Carolina-based company, which owns and operates 25 scrap-based steelmaking facilities across the country, are up 114% so far this year, easily outperforming comparable returns. of the S&P 500 in 2021.
Shares of NUE - which fell 5.5% in 2020 - closed last night at $114.00, giving the steel products company a valuation of $32.6 billion. The shares hit an all-time high of $128.81 on August 13.
On October 21, Nucor posted the most profitable quarter in its history by announcing third quarter results. The Charlotte, North Carolina-based industrial materials giant benefited from strong steel market fundamentals and a favorable demand environment.
The company said earnings per share increased by more than 1,000% from the same quarter a year earlier, reaching an all-time high of $7.28, while revenue rose 110% from a year earlier, hitting an all-time high of $7.28. 10.310 million dollars.
Looking ahead to 2022, Nucor shares appear poised for further appreciation in the coming months as they benefit from the expected construction boom stemming from President Joe Biden's infrastructure bill.
The spending package includes proposals to repair and improve the country's dilapidated roads, highways, bridges and airports. This could translate into more positive action for Nucor, which makes steel and steel products such as bars, beams, plates and plates.
