Cardinal Health shares stand out for Columbus companies in 2022 even as stock markets tank
In what was a brutal year for stocks,
Shares of the
And while shares of most local public companies struggled last year, Cardinal did have company on the plus side: Shares of food company
"The companies with more more stable, predictable earnings streams show less volatility and do better in a recessionary environment," said
On the flip side, shares of Upstart, which uses artificial intelligence and machine learning to automate the borrowing process, fell 91% in 2022, after soaring 271.3% in 2021, and Root, the young auto insurance company, had a second straight tough year with shares falling 92% after dropping 80% in 2021.
Local retailers had a tough year as well, led by
Rising interest rates, slowing economy hurt stock markets
A year ago, stock market indices were at or near all-time highs, coming off a third straight year of big gains driven by low interest rates, healthy consumer spending and falling unemployment rates.
But then inflation jumped to four-decade highs and the
Stocks, as a result, were punished, especially high-flying tech stocks that have little or no earnings.
The Dow Jones industrial average, made up of 30 large companies, fell 8.8% in 2022, the
Before their big jump in '22, shares of
The
With that, sales and profit for its fiscal first quarter that it reported in November topped
"I recognize there is still a lot to accomplish, yet I remain excited about these opportunities to drive growth,"
Cardinal is the kind of steady business that stood out in '22 compared with the rest of the market, said
"Companies with consistent profits and attractive valuations weather this environment much better," he said.
Local retailers
Shares of
But shares of Upstart, based on the
Upstart, founded in 2012, uses artificial intelligence and machine learning to automate the borrowing process.
The company went public at the end of 2020 and its shares climbed for much of 2021, rising 271.3% for the year.
At one point, it became one of the region's most valuable companies, but its valuation has now dropped to just more than
"Stocks with extreme valuations headed into a recession are the first to be sold," Raich said.
What will happen in '23?
Stock valuations that were stretched in 2022 have become more reasonable, but Raich believes that with the potential recession coming stock prices may have further to fall in coming months.
"No company is immune to the recession," he said. "Some companies are hurt less in a recessionary environment."
McBride said it's difficult for investors to pick the bottom of a stock market and that's why they should be invested over time.
"This is the time to be buying," he said. "It may not reward investors overnight, but over time it will."
Prices are as of the close on
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* Advance Drainage -39.8%
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* Bark -64.2%
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* Express -66.9%
* Greif 11.1%
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* Root -92%
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* Upstart -91.3%
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* Wendy's -5.1%
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