Here are our 4 best stocks — and 4 worst stocks — of the first quarter
Traders work on the floor of the New York Stock Exchange during morning trading on March 22, 2023 in New York City.
Michael M. Santiago | Getty Images News | Getty Images
The S&P 500 concluded a topsy-turvy — yet winning — first quarter of 2023 on Friday, overcoming a shock to the U.S. banking system in March to rise around 7%. The tech-heavy Nasdaq Composite proved to be the real standout, soaring nearly 17%. The 30-stock Dow Jones Industrial Average, meanwhile, eked out a roughly 0.4% gain.
Stocks’ rip-roaring January eased in February, with all three major Wall Street indexes finishing lower in that month. Then came the failure of three U.S. banks within days of each other starting March 8, which spooked investors and further stoked recession fears. The S&P 500 briefly went negative for the year on March 15, a rough session defined by banking concerns spreading to Europe. But as the bank crisis stabilized over the past two weeks, the averages more than bounced back.
Here’s a look at the best and worst performers in the Club’s 36-stock portfolio for the first quarter, beginning with the top four gainers.
Tech stocks lead the way
Nvidia CEO Jensen Huang speaks at a press conference on Jan. 7, 2018.
MANDEL NGAN | AFP | Getty Images
Nvidia (NVDA) captured the first-quarter crown, soaring an astounding 90% over the three-month period. The chipmaker is not only the Club’s best-performing holding, but the biggest winner in the entire S&P 500.
- The driving force behind Nvidia’s move: artificial intelligence. The AI buzz sparked by ChatGPT in late 2022 intensified throughout the first quarter, so it’s no surprise that investors flocked toward the company whose technology — both on the hardware and software side — is at the heart of the trend.
- Nvidia’s fourth-quarter earnings, in late February, only enhanced its shine. It reported better-than-expected results along with strong forward guidance, including quarter-over-quarter growth fueled by its data center and gaming segments.
- The strength in data center captures the tangible impact AI adoption has for Nvidia. Investors also took solace in the fact the gaming inventory correction that plagued the company in recent quarters is largely in the rearview mirror at this point. That’s another important reason why Nvidia’s stock did so well.
Nvidia’s stock performance year to date.
Meta Platforms (META) finished in second place in both the Club’s portfolio and the S&P 500 overall, climbing 76.1%.
- CEO Mark Zuckerberg dubbed 2023 the “year of efficiency” for the Instagram and Facebook parent. So far, management’s actions have lived up to the billing. Meta in March announced plans to cut 10,000 jobs, on top of 11,000-plus layoffs disclosed in November.
- Crucially, the social media giant also lowered its 2023 expense outlook for the second time this year. It now stands between $86 billion to $92 billion, down from the $89 billion-to-$95 billion range issued in February.
- Meta’s initial 2023 expense guidance of $96 billion and $101 billion flabbergasted Wall Street in late October, causing a huge sell-off in the already downtrodden stock. Now, investors are thrilled that Zuckerberg and Co. got serious about better aligned expenses with slower revenue growth.
Meta’s stock performance year to date.
Advanced Micro Devices (AMD) had the third-best performance in the first quarter, with shares advancing just over 51.3%.
- On Jan. 31, AMD CEO Lisa Su called the bottom in the chipmaker’s beleaguered PC business, saying the first quarter should be the trough with growth returning in the second quarter and into the rest of the year. That important statement gave investors confidence the chip inventory glut that crushed the company — and industry peers alike — last year was nearing an end.
- All signs also continue to point to AMD taking share from chief rival Intel (INTC) in the data center processor market. Su said AMD expects more share growth to occur in the third and fourth quarters, along with an overall improvement in the data center market.
- AMD also is seen as another winner in AI adoption, which has helped lift sentiment around the stock in the first quarter. In the second half of this year, AMD is expected to launch its next-generation supercomputer processor, which can be used for large language model applications. (ChatGPT is one example of a large language model, though it was trained on a Microsoft-built supercomputer that used Nvidia chips).
Advanced Micro Device’s stock performance year to date.
Checking in fourth was Salesforce (CRM), which saw its stock price climb 50.7% in the first quarter.
- The enterprise software maker’s stellar earnings report and guidance March 1 cemented investors’ warming attitude toward the company. Salesforce surged 11.5% the following day, one of its best single-session gains in a decade, because it was clear significant profitability improvements were underway.
- Salesforce shares were up more than 20% year to date before that earnings print, amid a broader rotation into the tech stocks that struggled in 2022, and on hopes that the five activist investors with stakes in the company could bring about margin expansion. The actual report confirmed CEO Marc Benioff is delivering on what investors care about — becoming more profitable and managing dilution with an enhanced buyback.
- Salesforce expects an adjusting operating margin of 27% in fiscal 2024, much better than analysts’ 22.8% estimate. Its share repurchase authorization increased to $20 billion, doubling the $10 billion buyback program first announced last year.
Salesforce’s year to date stock performance.
What’s the common denominator among the winners? These four stocks were beaten up last year as the Federal Reserve got aggressive with interest-rate hikes, crushing stocks with premium valuations and causing slowdowns in each business due to economic uncertainty. But as the calendar turned, investors realized they were far too negative on these tech stocks and regained appreciation of their secular growth stories.
Within this group, there are some additional overlaps. Some are self-help stories, such as Meta and Salesforce. Both companies put their cost structures under the microscope and found ways to reduce expenses. Layoffs are never easy, but the two companies did what was necessary to fix their business models. Stocks of other companies that “took their medicine” have done well in 2023 too.
Others top performers are business-cycle related. For both semiconductors companies, inventory gluts in the industries they sell into punished those stocks in 2022. For AMD, it was PC chips, and for Nvidia it was gaming GPUs. The gluts were so severe that it forced both companies to take big charges on their inventory. But after a couple of quarters of working the excess inventory down, both AMD and Nvidia expect the first quarter to represent the trough of those respective businesses.
First quarter laggards
A Halliburton oil well fielder works on a well head at a fracking rig site January 27, 2016 near Stillwater, Oklahoma.
J. Pat Carter | Getty Images
Halliburton (HAL) shares fell 19.6% in the first quarter, making the oilfield services firm the Club’s worst-performing stock in the period.
- Halliburton’s weakness is tied to factors outside the company’s control — specifically, the roughly 6% decline in West Texas Intermediate crude prices in the first quarter. Keep in mind Halliburton shares also soared 55% in the fourth quarter, so the stock entered the new year vulnerable to profit taking.
- Fundamentally, Halliburton offered investors a lot to like in the first three months of the year. In late January, it raised its dividend by a third to $0.16 per share and announced the resumption of its stock buyback program. It also reported better-than-expected fourth quarter numbers and a robust full-year outlook, with CEO Jeff Miller saying customer spending is expected to grow by at least 15% in 2023. He also indicated Halliburton continues to have pricing power.
Halliburton’s stock performance year to date.
Devon Energy (DVN) was second from the bottom, with shares falling 17.7% in the first quarter.
- Similar to Halliburton, the overall oil market weighed on Devon’s stock price in period.
- But unlike Halliburton, Devon in February rankled investors with its fourth-quarter results and 2023 outlook, which featured higher-than-expected capital expenditures and lower-than-anticipated production projections. That’s a double whammy of disappointment.
Devon Energy’s stock performance year to date.
The third-worst performing Club stock in the first quarter was Johnson & Johnson (JNJ), which saw its stock price decline 12.3% over the three-month stretch.
- A broader rotation out of health-care stocks, one of 2022’s top sectors, contributed to Johnson & Johnson’s weakness in the first quarter. For context, the Club’s three other health stocks — Eli Lilly (LLY), Humana (HUM) and Danaher (DHR) — also ended the quarter in the red.
- However, concerns about J&J’s ongoing talc litigation resurfaced in the quarter following an unfavorable court ruling on the drugmaker’s strategy to resolve the claims. That ruling, handed down Jan. 30 by a U.S. appeals court, has proven to be an additional overhang on J&J shares.
- Despite the stock struggles, J&J’s most recent quarterly results, issued in late January, showed healthy growth and solid free cash flow generation.
Johnson & Johnson’s stock performance year to date.
Honeywell International (HON) rounds out our list as the fourth-worst performer in the first quarter, falling 10.8%.
- Honeywell’s strong 2022 did not extend to the first three months of this year. It didn’t take long for sentiment to sour on Honeywell, either. On Jan. 4, UBS double-downgraded the industrial conglomerate, taking its rating to sell from buy.
- It’s been tough sledding for the stock since, with Honeywell’s uninspiring fourth-quarter earnings print in early February unable to shake off the malaise. The company’s sizable aerospace unit remains especially well-positioned, but it’s not getting a ton of love from Wall Street.
- Compounding matters for Honeywell is an upcoming CEO transition, which was announced March 14. President and COO Vimal Kapur is set to replace Darius Adamczyk on June 1. Adamczyk will remain executive chairman.
Honeywell’s year to date stock performance.
What is the common denominator among the laggards? It’s pretty simple to see. These four stocks all outperformed the S&P 500 by a wide margin last year. The total return (including dividends) on Halliburton was 75% and Devon’s was 52%. Johnson & Johnson and Honeywell both delivered around 5% compared with the S&P 500’s total return of about minus 18%. As the old saying goes, one key to investing is buying low and selling high. That’s what the market did to a lot of stocks in the first quarter. It sold off what investors “hid in” last year to buy what got crushed and historically does better when there is light at the end of the Fed tightening cycle.
(See here for a full list of the stocks in Jim Cramer’s Charitable Trust.)
As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.
THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
![777 hp electric overland concept from Italdesign bows in Beijing [video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2024/04/italdesign-overland.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
The all-new, all-electric Italdesign Quintessenza concept is a high-tech Italian take on the Porsche Dakar concept that’s just begging to be put into production.
Making its debut at the Beijing Auto Show, the Italdesign Quintessenza concept embodies both the dynamic prowess of a GT and the versatile adaptability of a pick-up truck. At least, that’s what its makers say. And, if your idea of a pickup truck leans more towards “Subaru Brat” than “Ford F-150 Lightning,” that’s probably right!
The rear section of the Quintessenza converts from a “hatchback” to an open “pickup” bed in true Brat fashion. The rear seats are designed to flip 180-degrees backwards, providing a rear-facing, panoramic “stargazing” mode that promises, “(the) experience and feeling of connection with nature and the outside world.”
Stargazing mode
In its more conventional GT “mode,” the Quintessenza is arguably the best-looking Italdesign concept to come out in years, with vertical lighting elements up front and aggressively-sculpted rear haunches that this writer thinks would be a natural for Audi.
Those design elements aren’t just aesthetic – they’re loaded with electronics. “Two aerodynamic fins that integrate the ADAS systems are present on the upper back of the roof, at the level of the C-pillars,” reads the official release. “They map the surrounding environment when the satellite signal is poor, and offer multifunction lights indicating the car’s driving mode and braking when the hard top is removed.”
Quintessenza vertical elements
So, what kind of vehicle is the Italdesign Quintessenza? Is it a true overland GT, in the style of the Porsche Dakar or 911 SC/RS (the rally car that became the 959)? Is it a high-end spin on the classic Subaru Brat? A futuristic Ute for traversing the Australian outback? Or is it something else entirely?
That’s above our pay grades – but you, dear readers? You guys know what’s up, so check out the official Quintessenza launch video (below), then let us know what you think of Italdesign’s latest in the comments section at the bottom of the page.
Italdesign Quintessenza
DIMENSIONS
- Length 5561 mm
- Height 1580 mm
- Width (front/rear) 2200 mm
- Wheelbase 3240 mm
- Front overhang 1003 mm
- Rear overhang 1318 mm
- Number of passengers 2+2
- Body Lightweight Aluminum structure
- Ground height Adjustable 200-280 mm
POWERTRAIN + PERFORMANCE
- Battery 150kWh/800V
- Power 580kW (approx. 777 hp)
- Range 750 Km (approx. 465 miles)
- 0-100 Km/h < 3 seconds
- 1 Electric Drive Unit Front axle
- 2 InWheel motor rear axles
SOURCE | IMAGES: Italdesign.
FTC: We use income earning auto affiliate links. More.
![The new Momentum Cito E+ dares you to leave the car at home [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2024/04/momentum-cito-e.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
All the cool suburbanites are already taking their kids to school, loading up at the farmers’ market, and making deliveries on clever and capable cargo e-bikes, but the new Momentum Cito E+ from Giant raises the cargo bike bar even higher — and makes leaving the car at home easier than ever.
Momentum is a new brand of “lifestyle” e-bikes from Giant Group designed to deliver premium features to customers while still hitting that $3,000-4,000 market “sweet spot.” Their latest bike, the all-new for 2024 Cito E+ utility bike, does just that, coming to market with a premium battery, Bluetooth technology, a suite of high-end safety features, and a $3,200 starting price.
Premium battery
Getting the most out of your e-bike often means getting the most out of your battery — and Momentum absolutely gets that. The Cito E+ ships with a 780 Watt-hour Panasonic battery pack with 22700 cells that have been optimized for e-bike use.
Compared to other ebike batteries with similar power ratings, the Momentum’s Panasonic battery promises to be lighter and more durable, with superior IPX7 weather protection, thermal regulation, and other safety features built-in (in fact, Panasonic was the first e-bike supplier to score a UL safety rating for its batteries).
The battery is easily removable for charging at home or in an office, but it can be charged while it’s in the bike, too. Either way, charging won’t take long — from 0 to 80% of charge (approx. 60 miles) of range is available in 3.5 hours, while a full (75 mile) charge takes less than 5 hours.
Connected cargo bike
As our test rider highlights in the video (above), the Momentum Cito E+ uses a proprietary battery management system, or BMS, to monitor the battery pack for maximum efficiency and reliability down to the individual cell level.
The BMS uses Bluetooth connectivity to transfer battery health data, state of charge, and other important information straight to the RideControl app, which enables the bike’s owner to get an in-depth look at the overall state of their e-bike and provides valuable diagnostic data to both the technicians tasked with servicing the bike and Giant themselves, to help develop even better e-bikes in the future.
That connection to Giant Group is a huge potential benefit to Momentum Cito E+ buyers, by the way, as it gives them access to support from more than 1,200 brick and mortar Giant dealers across the US alone (above).
That’s a serious advantage that online-only bike brands simply can’t match.
Safety first … and maybe second, too
Momentum’s commitment to safety doesn’t stop at the battery. The Cito E+ features confidence-inspiring 4 piston hydraulic disc brakes and a heavy duty suspension for predictable handling even under heavy loads — important if you have to suddenly haul the bike down from its electronically assisted 28 mph top speed with precious kids and cargo on the back.
LED head and taillights with a lever-activated taillight ensure Cito E+ riders will be seen, too, helping you stay safer after hours.
Accessories and add-ons
Momentum’s Cito E+ offers a comprehensive selection of accessories to help optimize it for each rider’s unique use case — whether that’s hauling up to 132 lbs. of cargo on the rear rack and 33 lbs. on the optional front basket (shown, above), or adding 2 Thule Yepp Maxi seats and getting the little ones to school five times a week.
You can find out more about the Momentum Cito E+ and the brand’s available accessories by clicking here.
Momentum Cito E+ gallery
FTC: We use income earning auto affiliate links. More.
Environment
‘This is a unique time’: ARK Invest’s chief futurist tackles tech innovation from AI to robotics
ARK Invest’s chief futurist lists five groups that should give tech investors an edge.
According to Brett Winton, robotics, artificial intelligence, multi-omics sequencing, public blockchain and energy storage are key areas because they’re all entering the marketplace at the same time.
“We believe that this is a unique time in technological economic history,” he told CNBC’s “ETF Edge” this week.
Winton collaborates with ARK Invest CEO Cathie Wood to maintain the ARK Venture Fund (ARKVX), which allows investors to buy into the private technology space.
According to the firm’s website, the goal of the fund is to make venture capital offerings of innovative spaces in the market accessible to individual investors. As of April 10, it shows the fund’s top holdings include Epic Games, known for online video game Fortnite, and biotech companies Freenome and Relation Therapeutics.
“Our emphasis is that we are investing in innovation over the long term and going to support management teams,” said Winton.
He contends it’s a strategy that’s often not prioritized.
“That’s a real challenge a lot of public market investors don’t have that long-term view,” Winton added.
The ARK Venture Fund is down more than 7% so far this year. However, it’s up almost 39% percent over the past 52-weeks.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Environment11 months agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Sports6 months agoGame 1 of WS least-watched in recorded history
-
Environment1 year agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Technology3 years ago
Game consoles were once banned in China. Now Chinese developers want a slice of the $49 billion pie
-
Politics2 years ago
Have the last few wobbly weeks seen a turning point for Johnson as PM?