This Week's Top Performers are Dominated by Energy and Healthcare Stocks

On the heels of buoyant oil prices and signs that labor markets are weak, investors flocked to energy stocks and defensive names during a holiday-shortened week. 

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According to the Dow Jones Industrial Average, as of 3 p.m. ET on Thursday, both the S&P 500 and Nasdaq Composite are headed for losing weeks. The S&P 500 is set to decline and the Nasdaq Composite is slated to decline. 

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In the wake of a surprise production cut from OPEC+, oil prices are rising for the third week in a row, pushing energy names up. ConocoPhillips and Hess were among the companies that investors bet on during the week due to tightening supply concerns. 

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A rising number of jobless claims this week, the latest sign of a cooling labor market, prompted investors to look at defensive sectors, including healthcare companies like UnitedHealth Group and Johnson & Johnson. 

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According to Trade Algo, these are other names outperforming this week:

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• ConocoPhillips

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• UnitedHealth Group Incorporated

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• Hess Corporation

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• Johnson & Johnson

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• Humana Inc.

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• Exxon Mobil Corporation

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• APA Corporation

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• Marathon Oil Corporation

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• Eli Lilly and Company

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• Molina Healthcare, Inc.

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The stock rose 7.7% as of 10 a.m. ET on Thursday, according to consensus estimates. According to analysts, ConocoPhillips' upside is about 22%. 

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Investors amid macro uncertainty should focus on this exploration and production firm, Goldman Sachs said last month. 

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Goldman Sachs writes in a March 23 note that it is looking for shares of quality producers that have attractive valuations, deep inventories, and lower-cost assets. 

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A total of 73% of healthcare analysts consider UnitedHealth Group a buying opportunity, and analysts predict it may increase by 17% by the end of 2023. The stock is down more than 3% this year. 

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Based on UnitedHealth's exposure to the Medicare Advantage market and its size, Bank of America named it one of its top stock picks for the second quarter. 

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This week, Johnson & Johnson shares outperformed, up 6.7%. However, just 22% of analysts recommended investing in the company. To settle allegations that talc in Johnson & Johnson's baby powder and other products caused cancer, the company announced this week that it would pay $8.9 billion over 25 years.

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