The Consistent Market Movers of 2020

– From Graham Griffin

Throughout 2020, the five stocks that consistently made the biggest gains on the S&P 500 included Etsy Inc. (NASDAQ: ETSY), Carnival Corp. (NYSE: CCL), Devon Energy Corp. (NYSE: DVN) and Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) and Apache Corp. (NASDAQ: APA).

As of March last year, GuruFocus started a new initiative to get more active on social media and interact with our audience on a daily basis. Over the year we’ve developed a number of posts including our increasingly popular Warren Buffett (Trades, Portfolio) and Market Movers Wednesdays.

In June it became clear that both series had become an integral part of our social media presence and were implemented on a weekly basis. In October, market movers found a daily spot on our social channels where our audience could find the best stocks in the S&P 500 at a glance.

Etsy

Etsy was the best of all companies thanks to big gains over the year. Thanks to a massive surge in the share price from March onwards, the company ended up in 10 different positions.

The consistent market drivers of 2020

Etsy is an American retailer of handmade goods, vintage items, and handicrafts. The business model is based on sellers listing products on the Etsy platform. The product categories include clothing and accessories, jewelry, craft supplies and tools, wedding accessories and clothing, entertainment items, home and living, vintage items, and children’s and baby items. Etsy revenue falls into the following categories: market revenue, seller services, and other revenue. The marketplace consists of a platform where sellers can list their products for a fee paid to Etsy.

On Jan. 4, the stock was trading at $ 172.13 per share with a market capitalization of $ 21.70 billion. The GF Value Line gives the share a clearly overrated rating.

The consistent market drivers of 2020

The consistent market drivers of 2020

GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 6 out of 10. There are currently no major warning signs issued for the company. Over the past three years, the company has increased its cash flows dramatically, bringing net income into positive territory after several years of fighting.

The story goes on

The consistent market drivers of 2020

The consistent market drivers of 2020

carnival

Carnival ranked second overall with nine separate mentions in our Market Movers posts during the year. Carnival was struck in early 2020 when travel ceased worldwide. Since May, the company has been taking small steps to return to pre-pandemic levels.

The consistent market drivers of 2020

The consistent market drivers of 2020

Carnival is the largest global cruise company that will deploy 87 ships at sea once cruising fully resumes after the pandemic. The brand portfolio includes Carnival Cruise Lines, Holland America, Princess Cruises and Seabourn in North America. P&O Cruises and Cunard Line in the UK; Aida in Germany; Costa Cruises in Southern Europe; and P&O Cruises in Australia. Carnival also owns Holland America Princess Alaska Tours in Alaska and the Canadian Yukon. Carnival’s brands drew around 13 million guests in 2019.

On January 4, the stock was trading at $ 20.38 per share with a market capitalization of $ 22.50 billion. The GF Value Line shows that the share is being traded with a significantly overvalued rating.

The consistent market drivers of 2020

The consistent market drivers of 2020

GuruFocus gives the company a financial strength rating of 4 out of 10, a profitability rating of 7 out of 10, and a rating rank of 7 out of 10. There are currently five serious warning signs being issued including pending sales on construction days and poor financial strength. Debt has increased significantly since 2015 as free cash flow took a huge leap.

The consistent market drivers of 2020

The consistent market drivers of 2020

Devon Energy

Devon Energy ranked third on our list of market movers for the year. Its stock value has been down over the past few years, but the company has still made some small jumps and has been on the rise since November.

The consistent market drivers of 2020

The consistent market drivers of 2020

Devon Energy, based in Oklahoma City, is one of the largest independent exploration and production companies in North America. The company’s asset base spans across North America and includes exposure to the Delaware, STACK, Eagle Ford, Powder River Basin, and Bakken games. At the end of 2019, Devon’s proven reserves were 589 million barrels of oil equivalent with net production of 323 mboe / d. Oil and natural gas liquids accounted for 69% of production and 62% of proven reserves.

On January 4th, shares were trading at $ 16.13 per share, up 2.02% for a market cap of $ 6.17 billion. It is traded at fair value according to the GF Value Line.

The consistent market drivers of 2020

The consistent market drivers of 2020

GuruFocus gives the company a Financial Strength rating of 4 out of 10, a Profitability Rank of 5 out of 10, and a Review Rank of 8 out of 10. Currently, three major warning signs of poor financial strength, declining sales per share and an Altman Z-Score of 0.38 are issued the company in the emergency column. The weighted average cost of capital dramatically outweighs the return on invested capital, meaning that as the company grows, it destroys value.

The consistent market drivers of 2020

The consistent market drivers of 2020

Norwegian Cruise Line Holdings

Norwegian Cruise Line Holdings took third place with Devon Energy and reached our market movers seven times. The company shares a similar story to Carnival and is making steady strides to recover from the pandemic.

The consistent market drivers of 2020

The consistent market drivers of 2020

Norwegian Cruise Line is the third largest cruise company in the world (with almost 60,000 berths) and operates 28 ships of various brands (Norwegian, Oceania and Regent Seven Seas) offering both freestyle and luxury cruises. Norwegian sails to more than 450 global destinations.

On January 4, the stock traded at $ 23.73 per share with a market capitalization of $ 7.49 billion. The GF Value Line shows that it is trading with a significantly overrated rating.

The consistent market drivers of 2020

The consistent market drivers of 2020

GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 8 out of 10. There are currently six major red flags being issued, including poor financial strength and new long-term debt. The company increased sales and net income before the pandemic downturn.

The consistent market drivers of 2020

The consistent market drivers of 2020

Apache

Apache rounds out the top 5 with six mentions in our Market Movers franchise last year. As with many companies, it hit a low in March but has been slowly picking up speed since September.

The consistent market drivers of 2020

The consistent market drivers of 2020

Houston-based Apache is one of the largest independent exploration and production companies in the world. It mainly operates in the United States, Egypt, the North Sea, and Suriname. At the end of 2019, the proven reserves amounted to 1.0 billion barrels of oil equivalent with a net production of 417 mboe / d (68% of which were oil and natural gas liquids, the rest consisted of natural gas).

On January 4, the stock was trading at $ 14.77 per share with a market capitalization of $ 5.58 billion. According to the GF Value Line, it is the only company on the list that trades with a slightly undervalued rating.

The consistent market drivers of 2020

The consistent market drivers of 2020

GuruFocus gives the company a financial strength rating of 1 out of 10, a profitability rating of 5 out of 10, and a rating rank of 8 out of 10. There are currently five serious warning signs being issued for the company. With a cash-to-debt ratio of 0.02, the company is below 91.01% of the industry, and the Altman Z-Score of -2.43 puts the company deep in the emergency pillar, with one bankruptcy in the next two Years is possible.

The consistent market drivers of 2020

The consistent market drivers of 2020

Disclosure: The author does not own any of the stocks mentioned.

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