Investors haven't had much to cheer about so far in 2022. The major market indexes are down. So are most stocks.
It's hard for any stock to deliver positive gains while the market is falling. But it's not impossible to do so. Here are three stocks that have soared as the market sank -- and whether or not they're good picks to buy now.
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1. Molecular Partners
Molecular Partners' (MOLN -11.23%) shares have skyrocketed more than 40% year to date. The big catalyst for the biotech was good news from a phase 2 study of experimental COVID-19 therapy ensovibep.
On Jan. 10, Molecular Partners and Novartis announced positive results from their Empathy phase 2 study of ensovibep in treating acute COVID-19 patients. Ensovibep met the primary endpoint of the study -- viral load reduction over eight days. It also achieved the study's secondary endpoints of reduced hospitalization and/or emergency room visits or death and time to sustained clinical recover as compared to placebo.
These results were so impressive that Novartis exercised its option to license ensovibep from Molecular Partners. The two companies plan to seek U.S. Emergency Use Authorization (EUA) for the drug and authorizations in other countries as well.
2. Digital World Acquisition
Shares of Digital World Acquisition (DWAC) are up more than 30% so far in 2022. At one point, the special purpose acquisition company (SPAC) stock had jumped nearly 70% before giving up some of its gains.
No news has caused these gyrations. The last announcement from Digital World Acquisition came in December when the company said that it had entered into subscription agreements for $1 billion.
Investors are excited about the prospects for Digital World Acquisition. The SPAC plans to merge with Trump Media & Technology Group, which is launching a new social media platform called Truth Social.
3. ExxonMobil
Another big winner that's going against the grain so far this year is ExxonMobil (XOM 1.15%). The giant oil and gas stock has jumped more than 20% year to date.
The primary reason behind ExxonMobil's performance is the continued increase in oil prices. However, the company has also announced several developments in recent weeks that investors liked.
On Jan. 5, ExxonMobil revealed that it had made two oil discoveries off the coast of Guyana. Less than a week later, the company announced that it had increased its stake in Norwegian biofuels producer Biojet AS to 49.9%. ExxonMobil also reported on Jan. 18 that it plans to achieve net-zero greenhouse gas emissions by 2050.
Are they buys now?
Are these high-flying, market-beating stocks still smart picks for investors? In homage to one of the late singer Meat Loaf's biggest hits, two out of three ain't bad.
Let's start with the one that isn't a great pick: Digital World Acquisition. My view is that the valuation of this SPAC stock has gotten ahead of its realistic financial prospects. Competing in the social media world won't be easy.
However, I think that both Molecular Partners and ExxonMobil could be smart picks. But they'll likely appeal to different kinds of investors.
If you're willing to take on considerable risk, Molecular Partners might be of interest. It's likely that the stock could jump even higher if Novartis and Molecular Partners win EUAs for ensovibep.
ExxonMobil is a top stock for income-seeking investors to consider buying. The energy giant's dividend yield tops 4.7%. ExxonMobil's business prospects look better than they have in recent years, so the dividend should be safe.
