12 Best Performing NASDAQ Stocks in 2022

Published on December 28, 2022 at 11:58 pm by Hamna Asim in Hedge Funds, News

In this article, we discuss 12 best performing NASDAQ stocks in 2022. If you want to see more stocks in this selection, check out 5 Best Performing NASDAQ Stocks in 2022.

The S&P 500 rose 0.6% to 3,844.82 on December 23, while the Nasdaq Composite gained 0.2% to close at 10,497.86. The Dow Jones Industrial Average also closed 176.44 points or 0.5% higher at 33,203.93. However, on December 27, stocks posted mixed performance, as yields rose and investors focused on the economic outlook for 2023. The Dow Jones Industrial Average climbed 0.2% and the S&P 500 dropped 0.3%, while the Nasdaq Composite fell 1.1%. Stocks with deep links to the Chinese economy jumped as Covid restrictions loosened in the Asian region. Yields also propelled higher, which pressured growth stocks.

Stocks are headed for their worst annual performance since 2008 and another month of losses, with the Dow and S&P off by 8.2% and 19.4%, respectively, while the Nasdaq’s fell 34.4% year-to-date as of December 27. During December, the S&P has plunged 5.9%, while the Dow and Nasdaq have plummeted 3.6% and 9.2%, respectively. The major averages are on their way for the largest monthly drops since September. Keith Lerner, Truist’s co-chief investment officer, noted:

“It’s basically the continuation of high yields depressing growth, with redistribution into other sectors that are smaller, but not big enough to change the headline index.”

With this market outlook in mind, investors are looking to buy stocks which have posted share price gains this year, in order to construct a well balanced portfolio. While some traders seek get-rich-quick stocks (see 12 Best Get Rich Quick Stocks To Buy), others tend to gravitate towards stable dividend payers as a hedge against market turbulence (see 12 Dividend Stocks That Outperform S&P 500). Although investors usually pile into the likes of stable income stocks like Johnson & Johnson (NYSE:JNJ), Costco Wholesale Corporation (NASDAQ:COST), and The Coca-Cola Company (NYSE:KO) to navigate the volatile economic backdrop, another way to combat the consistently battered stock market is to invest in equities which have outperformed benchmark indices significantly and offer meaningful growth potential.

Our Methodology

We selected the NASDAQ stocks that offer year-to-date share price gains of more than 100% as of December 27. We have assessed the hedge fund sentiment from Insider Monkey’s database of 920 elite hedge funds tracked as of the end of the third quarter of 2022. The list is arranged according to the number of hedge fund holders in each firm. This means our list demonstrates the best performing NASDAQ stocks to buy according to hedge funds. We also discussed analyst coverage, future growth plans, and the positive catalysts associated with these firms.

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Best Performing NASDAQ Stocks in 2022

12. Sigma Lithium Corporation (NASDAQ:SGML)

Number of Hedge Fund Holders: 8

YTD Share Price Gain as of December 27: 191.86%

Sigma Lithium Corporation (NASDAQ:SGML) is headquartered in São Paulo, Brazil, and the company focuses on the exploration and development of lithium deposits in Brazil. On December 5, Sigma Lithium Corporation (NASDAQ:SGML) announced that it aims to approximately triple its planned production of battery grade lithium concentrate to nearly 100,000 metric tons per annum of lithium carbonate equivalent by 2024 following results from a study at its Grota do Cirilo project in Brazil. The company plans to start commissioning Grota do Cirilo this month, with production by April 2023.

On December 5, Canaccord analyst Katie Lachapelle raised the firm’s price target on Sigma Lithium Corporation (NASDAQ:SGML) to C$64 from C$45 and reiterated a Speculative Buy rating on the shares.

According to Insider Monkey’s data, Sigma Lithium Corporation (NASDAQ:SGML) was part of 8 hedge fund portfolios at the end of the third quarter of 2022, up from 3 in the prior quarter. Jack Ripsteen’s Potrero Capital Research is the largest position holder in the company, with 596,930 shares worth $16.2 million.

Like Johnson & Johnson (NYSE:JNJ), Costco Wholesale Corporation (NASDAQ:COST), and The Coca-Cola Company (NYSE:KO), Sigma Lithium Corporation (NASDAQ:SGML) is one of the stocks on the radar of smart investors this year.

11. TORM plc (NASDAQ:TRMD)

Number of Hedge Fund Holders: 15

YTD Share Price Gain as of December 27: 274.94%

TORM plc (NASDAQ:TRMD) is a London-based product tanker company that engages in the transportation of refined oil products and crude oil worldwide. The company transports gasoline, jet fuel, and naphtha. TORM plc (NASDAQ:TRMD) is one of the best performing stocks this year, with shares up nearly 275% year-to-date as of December 27.

On November 10, the company reported Q3 GAAP earnings per share of $2.63 and a revenue of $448.1 million, up 188.2% year-over-year and beating Wall Street consensus by $106.85 million. TORM plc (NASDAQ:TRMD) also paid a quarterly dividend per share of $1.46 to shareholders on December 8.

Pareto analyst Eirik Haavaldsen initiated coverage of TORM plc (NASDAQ:TRMD) on May 25 with a Buy rating and a DKK 140 price target. The company could pay out dividends equal to 40% of its market value over the next three years, the analyst told investors in a research note.

According to Insider Monkey’s third quarter database, 15 hedge funds were long TORM plc (NASDAQ:TRMD), compared to 12 funds in the prior quarter. The collective stakes in Q3 2022 increased to $1.16 billion from $760 million in Q2 2022. Howard Marks’ Oaktree Capital Management is the largest stakeholder of the company, with 53.8 million shares worth $1.10 billion.

10. Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM)

Number of Hedge Fund Holders: 16

YTD Share Price Gain as of December 27: 174.04%

Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is a Massachusetts-based commercial-stage biopharmaceutical company focused on the development and commercialization of therapeutics for the treatment of rare genetic diseases of obesity. On November 21, Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) announced that it won label expansion for obesity therapy Imcivree in the United Kingdom. Year-to-date as of December 27, the shares have climbed over 174%, making Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) one of the best performing NASDAQ equities in 2022.

On August 7, Goldman Sachs analyst Corinne Jenkins upgraded Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) to Buy from Neutral with a $28 price target. The analyst believes that the outlook for Imcivree was transformed by initial Phase 2 data in patients with Hypothalamic Obesity, which suggests a high probability of clinical success in this indication.

According to Insider Monkey’s third quarter database, 16 hedge funds held stakes worth $431.5 million in Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM), compared to 16 funds in the last quarter worth $57.8 million. Julian Baker and Felix Baker’s Baker Bros. Advisors is the largest stakeholder of the company, with more than 6 million shares worth $148.5 million.

9. Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX)

Number of Hedge Fund Holders: 18

YTD Share Price Gain as of December 27: 174.71%

Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) is a Florida-based commercial-stage biopharmaceutical company, focused on developing and commercializing therapies for patients with rare debilitating, chronic neuromuscular, and neurological diseases in the United States. On December 19, Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) announced that it will acquire the U.S. rights to the Japanese drugmaker Eisai’s epilepsy drug Fycompa and it will also negotiate the acquisition of a rare epilepsy asset in Eisai’s pipeline.

On December 21, H.C. Wainwright analyst Andrew Fein raised the price target on Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) to $24 from $18 and kept a Buy rating on the shares, noting that the announced agreement with Eisai for U.S. commercial rights to Fycompa CIII in the treatment of epilepsy “turns a new page” for the Catalyst platform.

According to Insider Monkey’s Q3 data, 18 hedge funds were long Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX), with collective stakes worth $189.20 million, compared to 16 funds in the prior quarter worth $138.3 million. James E. Flynn’s Deerfield Management is the biggest stakeholder of the company, with approximately 5 million shares worth $62.8 million.

8. ADMA Biologics, Inc. (NASDAQ:ADMA)

Number of Hedge Fund Holders: 18

YTD Share Price Gain as of December 27: 148.30%

ADMA Biologics, Inc. (NASDAQ:ADMA) is a New Jersey-based biopharmaceutical company that engages in developing, manufacturing, and marketing specialty plasma-derived biologics for the treatment of immune deficiencies and infectious diseases in the United States and internationally. ADMA Biologics, Inc. (NASDAQ:ADMA) announced on December 13 that the U.S. Food and Drug Administration approved the room temperature storage conditions for its Asceniv and Bivigam immune globulin drug products for up to 4 weeks during the first 24 months of the 36-month approved shelf life. ADMA Biologics, Inc. (NASDAQ:ADMA) is one of the best performing NASDAQ stocks in 2022, with share price gaining over 148% as of December 27.

On October 12, Mizuho analyst Anthony Petrone initiated coverage of ADMA Biologics, Inc. (NASDAQ:ADMA) with a Buy rating and a $5 price target. He cited the “still accelerating” adoption of ASCENIV, continued BIVIGAM shares gains and benefits from a transition to an integrated plasma supply chain. He sees a path to 40% gross margins given supply chain benefits, the analyst told investors.

According to Insider Monkey’s Q3 data, 18 hedge funds were long ADMA Biologics, Inc. (NASDAQ:ADMA), up from 13 funds in the prior quarter. Joseph Edelman’s Perceptive Advisors is the largest stakeholder of the company, with approximately 11 million shares worth $26.5 million.

7. Verona Pharma plc (NASDAQ:VRNA)

Number of Hedge Fund Holders: 20

YTD Share Price Gain as of December 27: 214.44%

Verona Pharma plc (NASDAQ:VRNA) is a London-based clinical stage biopharmaceutical company focused on development and commercialization of therapies for the treatment of respiratory diseases. On December 20, Verona Pharma plc (NASDAQ:VRNA) announced a phase 3 trial evaluating a nebulized form of its inhibitor ensifentrine for the treatment of chronic obstructive pulmonary disease that met its primary and secondary goals. Consequently, US-listed shares of Verona Pharma plc (NASDAQ:VRNA) climbed 26% to $17 in premarket trading.

On December 21, Truist analyst Joon Lee raised the price target on Verona Pharma plc (NASDAQ:VRNA) to $28 from $20 and maintained a Buy rating on the shares after the company’s “positive” phase 3 trial data evaluating nebulized ensifentrine for the maintenance treatment of chronic obstructive pulmonary disease.

According to Insider Monkey’s data, 20 hedge funds were bullish on Verona Pharma plc (NASDAQ:VRNA) at the end of September 2022, compared to 11 funds in the prior quarter. Peter Kolchinsky’s RA Capital Management is the largest stakeholder of the company, with 6.05 million shares worth $61.8 million.

6. TransMedics Group, Inc. (NASDAQ:TMDX)

Number of Hedge Fund Holders: 21

YTD Share Price Gain as of December 27: 192.33%

TransMedics Group, Inc. (NASDAQ:TMDX) is a Massachusetts-based commercial-stage medical technology company, engaged in transforming organ transplant therapy for end-stage organ failure patients in the United States and internationally. On November 4, TransMedics Group, Inc. (NASDAQ:TMDX) traded approximately 20% higher after the company posted better-than-anticipated Q3 results and forecast revenues above estimates, supported by higher sales of OCS Heart and OCS Liver. The company raised full-year 2022 revenue to be in the range of $80 million to $85 million, from the prior guidance of $67 million to $75 million versus analysts’ estimate of $75.70 million.

On December 16, Cowen analyst Joshua Jennings raised the price target on TransMedics Group, Inc. (NASDAQ:TMDX) to $70 from $60 and kept an Outperform rating on the shares.

According to Insider Monkey’s third quarter database, 21 hedge funds were bullish on TransMedics Group, Inc. (NASDAQ:TMDX), compared to 13 funds in the prior quarter. Richard Driehaus’ Driehaus Capital is the largest stakeholder of the company, with 996,569 shares worth $41.6 million.

In addition to Johnson & Johnson (NYSE:JNJ), Costco Wholesale Corporation (NASDAQ:COST), and The Coca-Cola Company (NYSE:KO), TransMedics Group, Inc. (NASDAQ:TMDX) is one of the stocks preferred by elite hedge funds this year.

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