In this article, we discuss 5 best technology stocks that outperformed in 2022. If you want to see more best technology stocks that outperformed in 2022, the risk/reward, and methodology of this list, go directly to 12 Best Technology Stocks That Outperformed in 2022.
5. Lockheed Martin Corporation (NYSE:LMT)
Year to Date Return as of December 14: 36.92%
Number of Hedge Fund Holders: 53
Lockheed Martin Corporation (NYSE:LMT) is a defense giant that makes military aircraft such as the F-22 and F-35. Like other leading defense stocks, Lockheed Martin Corporation (NYSE:LMT) has done well in 2022.
While the Nasdaq has declined 29.44%, Lockheed Martin Corporation (NYSE:LMT) shares have surged 36.92% year to date. One reason for the outperformance could be the company’s strong earnings. For Q3, Lockheed Martin Corporation (NYSE:LMT)’s adjusted EPS rose to $6.87 from $6.60 in the same quarter of the prior year. Sales rose to $16.6 billion compared to $16 billion in the third quarter of 2021.
53 hedge funds in our database owned shares of Lockheed Martin Corporation (NYSE:LMT) at the end of Q3, ranking the stock #5 on our list of 12 Best Technology Stocks That Outperformed in 2022.
4. Raytheon Technologies Corporation (NYSE:RTX)
Year to Date Return as of December 14: 14.92%
Number of Hedge Fund Holders: 55
Raytheon Technologies Corporation (NYSE:RTX) is a leading maker of aviation and defense system technologies whose shares have surged 14.92% year to date as of December 14. In Q3, Raytheon Technologies Corporation (NYSE:RTX) reported adjusted EPS of $1.21 on sales of $16.95 billion versus the consensus of $1.14 on revenue of $17.23 billion. The company also raised FY22 adjusted EPS guidance to $4.70-$4.80 from the previous $4.60-$4.80.
Given Raytheon Technologies Corporation (NYSE:RTX)’s strong business, analysts expect the company to earn $4.76 per share in 2022, $5.08 per share in 2023, and $6.02 per share in 2024.
3. Texas Instruments Incorporated (NASDAQ:TXN)
Year to Date Return as of December 14: -7.75%
Number of Hedge Fund Holders: 59
Texas Instruments Incorporated (NASDAQ:TXN) is a leading semiconductor maker whose shares have declined 7.75% versus the Nasdaq’s decline of 29.44% in 2022.
One reason for the company’s decline could be that analysts expect Texas Instruments Incorporated (NASDAQ:TXN) to earn $9.28 per share in 2022, $7.97 per share in 2023, and $8.60 per share in 2024. Given the lower expected earnings in the next few years, Texas Instruments Incorporated (NASDAQ:TXN) might not be as popular with growth investors as some other quality stocks.
Nevertheless, the company does have many competitive advantages and 59 hedge funds in our database owned shares of Texas Instruments Incorporated (NASDAQ:TXN) at the end of Q3, ranking the stock #3 on our list of 12 Best Technology Stocks That Outperformed in 2022.
2. Oracle Corporation (NYSE:ORCL)
Year to Date Return as of December 14: -6.92%
Number of Hedge Fund Holders: 67
Oracle Corporation (NYSE:ORCL) is a leading database and enterprise software maker whose shares have declined 6.92% year to date as of December 14. Although its shares are lower, Oracle Corporation (NYSE:ORCL) has outperformed the market and many other technology stocks this year given the relative stability of its enterprise business where a significant percentage of the revenues are fairly recurring.
Analysts also expect Oracle Corporation (NYSE:ORCL) to earn $4.88 per share in 2023, $5.55 in 2024, and $6.33 per share in 2025.
1. Apple Inc. (NASDAQ:AAPL)
Year to Date Return as of December 14: -21.32%
Number of Hedge Fund Holders: 140
Apple Inc. (NASDAQ:AAPL) ranks #1 on our list of 12 Best Technology Stocks That Outperformed in 2022 given 140 hedge funds in our database owned shares of the iPhone maker at the end of Q3. Although shares of Apple Inc. (NASDAQ:AAPL) have declined 21.32% year to date as of December 14, the company’s stock has nevertheless outperformed the Nasdaq and many other big tech companies as well this year. One reason could be Apple Inc. (NASDAQ:AAPL)’s considerable loyal customer base and the company’s strong financial history of returning capital back to shareholders.
Wedgewood Partners commented on Apple Inc. (NASDAQ:AAPL) in a Q3 2022 investor letter,
Apple Inc. (NASDAQ:AAPL) grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.
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