This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

2012 Winners And Losers: Where To Look Next

As 2012 ends, it is time to look at the sectors that did the best. The best market performers went to the financial sector, up 27.65% and nearly double the return of the S&P 500 index. The sector benefited from a return of around 120% from Bank of America (BAC). At the start of last year, the company traded well below its book value, which is somewhere in the 20’s. A gloomy cloud that held back shares was its unknown liability in the mortgage market. Since then, housing prices improved in places like Phoenix (up 21.7%). Citigroup (C) shares were up around 54% in 2012.

Screen shot 2013-01-07 at 11.01.04 AM

Consumer Discretionary rose 22.81% in the year. Companies like Comcast (CMCSA), Home Depot (HD), Amazon (AMZN), and Walt Disney (DIS) helped generate strong returns. Home Depot and Amazon surprised many: housing was assumed to be weak, which proved wrong. Amazon’s stratospheric high P/E failed to stop shares from rising nearly 50% in 2012.

The Health Care sector was up 16.74%. Companies like Pfizer (PFE) did well, while also paying dividends.

Only Utilities generated a negative return, but the chart may not have included dividend returns.

For companies on the S&P 500, EBAY (EBAY) outperformed the majority of technology stocks on the index. eBay closed recently at $53.59 and for 2012, shares were up 68.5%. Companies performing better than eBay were Expedia (EXPE), up 112%, Seagate Technology (STX), up 85%, and Computer Sciences Corp. (CSC), up 69%.

EXCLUSIVE OFFER: Jim Cramer’s Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he’s trading today with a 14-day FREE pass.

Analysis:

Markets were driven higher by another round of monetary easing in the last quarter of the year. Although China’s growth slowed, the region did not spark any panic selling in the markets. The economy in Europe continued to be weak, but politicians managed to convey solidarity amongst the countries. In 2013, investors should expect unlimited monetary easing to support the goal for growth at all costs. This will limit volatility (which hit another low at the time of writing) and the downside in markets.

Stock quotes in this article: BP, CSC, EBAY, STX, XOM 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs