The FTSE 100 index has moved sideways this year. The index is trading at £7,550, which is slightly below its year-to-date high of £7,642. The stock has jumped above 37% above the lowest level in November 2020. So, here are the best performing FTSE stocks this year.
Royal Dutch Shell
The Royal Dutch Shell (LON: RDSB) share price has risen by 26% this year, becoming the best performing stock in the FTSE 100 index. There are three main reasons why the stock has jumped sharply this year.
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First, the stock has risen because of the rising crude oil and natural gas prices. Oil has risen to the highest level in over seven years while natural gas is soaring as tensions between Russia and western countries rise.
Second, the RDSB share price has also risen because of the company’s share buyback program with the funds it raised after selling its Permian Basin assets to ConocoPhilips. Finally, investors are cheering the company’s restructuring efforts.
Standard Chartered
The Standard Chartered (LON: STAN) is the second-best performer in the FTSE 100 this year. The stock has jumped by 25% this year alone. The performance happened as investors cheered the potential for rate hikes in the UK and in other emerging market economies where it does business.
Most importantly, since HSBS is the third-best performer in the FTSE, there is a likelihood that investors believe that the companies are undervalued. They were among the worst-performing bank stocks in 2021.
BP
BP (LON: BP) share price has performed well this year. It has already extended last year’s gains after jumping by 20% this year. Like Shell, the stock’s good performance is mostly because of the rising oil and gas prices and the possibility that the company will boost its payouts to investors.
The next key catalyst for BP’s shares will be the company’s quarterly results. Analysts expect that the firm’s revenue rose in the fourth-quarter although the Omicron variant will be a drag.
Vodafone
The Vodafone (LON: VOD) share price has done well in 2022. It has risen by 20.43%, becoming the fifth-best performer after Shell, Standard Chartered, and HSBC.
The stock gained after Cevian Asset Management announced that it had a stake in the firm. The fund has not yet declared what it wants changed in the company. Some of the top proposals to generate value in the company are on selling some of its assets or even boosting its payouts to shareholders.
Last week, the company published strong results. It said that its revenue rose to 11.6 billion euros in the third quarter while its profitability rose.
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