Stocks to buy

So far this year, broad markets have declined thanks to high inflation and an uncertain economic outlook. Unfortunately, the situation is unlikely to change soon. In addition, the Federal Reserve continues to be hawkish. JP Morgan Chase (NYSE:JPM) found that between early Jan. and Oct. 18, retail investor portfolios in the U.S. were down 44%. However, there are plenty of stock winners that are bucking the bearish trend.

We are focusing on companies with a market cap of at least $1 billion on this list. Investments such as oil and gas stocks and healthcare stocks seem to add the most value, which is why you will find many stock winners from these two areas. There are also penny stocks that have done well this year. However, they have been excluded from this list because of the volatility of trading in the penny stock space. With this criterion in mind, here are some of the stocks that have given you the best returns this year.

TH Target Hospitality $12.42
CVX Chevron $183.25
BTU Peabody Energy $24.06
ET Energy Transfer $12.82
OXY Occidental Petroleum $74.02
SGML Sigma Lithium $34.61
XOM Exxon Mobil $111.12

Target Hospitality (TH)

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Target Hospitality (NASDAQ:TH) is a company that stands at the forefront of the massive 2022 oil and gas boom. The innovative approach to workforce lodging and temporary housing has set them apart from other players in this space. With a proven track record of success and commitment to providing the best accommodations, Target Hospitality is truly a unique way to play one of the most promising sectors of our time.

So if you want to take advantage of this boom, look no further than Target Hospitality. Apart from the positive tailwinds associated with the broader oil and gas sector, Target Hospitality has done well this year. It gained a lucrative new government contract in July, and shares spiked as a result. From then on, the stock is on an upward trajectory and shows no signs of slowing down.

Chevron (CVX)

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Chevron (NYSE:CVX) is one of the most well-established energy companies in the world. With its innovative approach to sourcing and refining oil and natural gas, Chevron has consistently remained at the forefront of the global energy industry. Chevron is a solid investment choice for savvy stock pickers who want to take advantage of this shifting market landscape. Within the last few weeks, the U.S. benchmark price for oil fell below $80 a barrel for the first time this year. It prompted a selloff among the energy supermajors. Chevron also suffered some damage, but the stock is still up substantially over last year.

With roots dating back to the 1800s, Chevron has weathered countless market fluctuations and global crises, consistently delivering strong performance. And yet, despite the steep drop in oil prices that shook the industry in recent years, Chevron continued to increase its dividend each year.

In 2020 alone, Chevron raised its dividend by ten cents, marking a truly impressive achievement given the challenging economic climate brought upon by the Covid-19 pandemic. This trend continued in 2021 and 2022, with additional increases that further cemented Chevron’s status as a Dividend Aristocrat.

With so many years of reliable financial performance under its belt, it is clear that Chevron is one of the most stand-out energy companies in the world today. And with investors reaping ever-growing dividends year after year, Chevron truly is an investment to be proud of.

Whether looking for stability or opportunity, Chevron is an excellent choice for any investor looking to ride out the 2022 oil boom. So don’t miss out on this golden opportunity. Put Chevron at the top of your portfolio today.

Peabody Energy (BTU)

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Peabody Energy (NYSE:BTU) is one of the world’s largest coal companies, providing fuel to a wide range of industries and power plants across the globe. With a long history in the industry, Peabody has established itself as a leader in coal mining and production. The company is committed to providing its customers with high-quality resources while also upholding safety and environmental standards at every stage of the process.

Its recent success can be largely attributed to the Russian invasion of Ukraine. Due to increased demand for energy amid rising geopolitical tensions, coal has seen a major boost in price, leading Peabody and other companies involved in the space to reap huge profits. In the most recent quarter, the company reported an 80% increase in revenues. It also generated $578 million in adjusted EBITDA, its highest quarterly total since 2005. Peabody’s stock has surged in recent months. The coal industry is flourishing at large. Peabody Energy, which seems to always come out on top in the end, will continue to thrive.

With its sharp foresight and strong leadership, Peabody is sure to stay ahead of the curve in an ever-changing landscape. When many see uncertainty looming on the horizon, Peabody represents abundant stability and growth potential. It makes the stock an ideal investment for savvy individuals looking to secure their financial futures.

Energy Transfer (ET)

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Energy Transfer (NYSE:ET) is one of the most promising investments in today’s energy market. With a vast network of oil, natural gas, and natural gas liquids pipelines, Energy Transfer enables the flow of valuable resources throughout the country. Not only does this allow for the efficient and cost-effective production of energy resources, but it also helps to keep fuel prices stable and low across industries. Energy Transfer has a proven track record of delivering consistent returns to investors.

Energy Transfer operates an extensive network of 120,000 miles of pipelines spread across 41 states in North America. These pipes move around 30% of America’s crude oil and gas. The midstream sector pulled back in recent weeks. But ET is still up by double digits this year. And when you add in its mouth-watering dividend yield of 8.46%. Energy Transfer is a top-tier energy company well-positioned to succeed in the rapidly changing energy landscape. With a solid investment grade credit rating, diverse business model, and attractive valuation compared to its peers, Energy Transfer has all the characteristics of stock winners investors like.

Occidental Petroleum (OXY)

Occidental Petroleum (NYSE:OXY) has been one of the top performers in the stock market over the last year, with its shares soaring by triple digits since the start of 2022. Since July, Warren Buffet has been adding Occidental Petroleum to its portfolio, spotlighting the oil and gas major. Berkshire Hathaway has raised its stake to roughly 21% in Occidental Petroleum. In August, the Securities and Exchange Commission gave it the go-ahead to buy 50% of Occidental.

U.S. crude oil prices peaked at $130 per barrel in early March. In turn, OXY has been using these conditions to its advantage and investing in new production methods to keep up with the demand. Despite the broader uncertainties, Occidental affirmed its full-year capital budget of $3.9 billion to $4.3 billion and expects spending at the higher end of guidance.

In the second quarter, Occidental Petroleum beat earnings estimates, soaring 888% year-over-year and revenue jumping 81% to $10.7 billion. It builds on the performance of the past four quarters, where the company logged excellent figures. With steady profits and strong growth potential, Occidental Petroleum looks poised to continue performing well. Whether you’re an experienced investor or just starting, Occidental is one of the best stock winners out there.

Sigma Lithium (SGML)

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Sigma Lithium (NASDAQ:SGML) has quickly established itself as one of the leading players in the global lithium market. Thanks to Sigma’s cutting-edge technologies, it can now extract this valuable mineral from unconventional sources. It significantly increases its production capacity. A commitment to excellence has won them numerous awards and accolades from clients and investors, cementing Sigma’s place as one of the top companies in their field. With a bright future ahead, Sigma Lithium is poised to continue dominating the lithium industry for years.

The biggest tailwind for Sigma Lithium in the forthcoming decades is the growing demand for electric vehicles and other types of batteries. The electric car market is predicted to see an average growth rate of 17.75% by 2027, meaning the total market will be $869.30 billion in the same year. Considering this robust growth, it comes as no surprise Sigma Lithium is among the major stock winners this year.

Exxon Mobil (XOM)

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Exxon Mobil (NYSE:XOM) has enjoyed a long and successful history as one of the world’s leading energy companies. Even during periods of economic downturn and fluctuating oil prices, Exxon Mobil has managed to maintain its position. This is partly due to the company’s strong financial foundation, built on years of careful investment and strategic planning. But Exxon Mobil also benefits from its long-standing commitment to innovation and technological advancement, with new technologies adopted throughout the organization as they become available.

Whether you’re an Exxon Mobil shareholder or watch the ups and downs of the stock market, it’s clear that Exxon Mobil is truly one of today’s stock winners. The company recently reported a net income of $19.66 billion on revenues of $107.44 billion. The figures represent an increase of 48.98% and 191.26% in the same period last year. In addition, Exxon has hiked its distribution for 39 consecutive years. When you add its fundamentals and exemplary dividend performance, Exxon Mobil looks like one of the best stock winners.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.