Investing in your own back yard: How well would that strategy have worked in 2023?
Consider this for an investment strategy: What if you put together a portfolio built exclusively on companies in your back yard?
That means investing in the places where you and your neighbors work, in the banks where you have your checking account and in the utilities that heat and light your home.
In 2023, that strategy would have served you well — at least in some cases.
Then again, there are other strategies that might have worked just as well. After all, the Dow Jones industrial average gained 13.7% in 2023, while the S&P 500, which reflects a broad cross section of the stock market, gained more than 24%.
Erie's top employer has strong year
Erie Indemnity, the management arm for Erie-based Erie Insurance, the region's largest employer and a member of the Fortune 500, did even better. The company's stock rose more than 37% in value during the year to close at $334.92.
The stock price wasn't the only positive number. In October, the company reported that operating income for the first nine months of the year was $393 million, up from $294 million the previous year.
Tim NeCastro, the company's CEO, talked about the results in an Oct. 27 earnings call.
He said, "We remain very strong financially with an overall surplus position of $9.1 billion. Like many other carriers, we've been taking rate increases to improve our profitability."
Amazon delivered for shareholders in 2023
Amazon, the ubiquitous online shopping destination that also includes Prime streaming service, also did well for its shareholders.
Amazon stock gained 80% in value over the last year as the price rose from $81.47 to $151.94.
The world's second-largest company opened a new fulfillment center in 2021 in the former Steris Corp. building at 2424 W. 23rd St. in Millcreek Township.
Like Amazon, Walmart doesn't have special ties to Erie, but it is the world's largest company and a popular shopping destination. It's also the fifth-largest employer in Erie County and the fourth-largest in Crawford County.
During 2023, the company's stock price rose 10.9% to close the year at $167.65.
Wabtec posted strong numbers in 2023
Wabtec Corp., the region's largest industrial employer, also gave shareholders a solid return on their investment.
Despite some challenges, including a 70-day strike at the company's Erie locomotive plant, its stock price rose 23% during the year to close at $114.
GE stock price soars in good news for local investors
General Electric Co., which sold GE Transportation to Wabtec in 2019 in a sale that included the company's locomotive plant, also posted a strong year.
And that's good news for investors in Erie, where GE has long been regarded as the most widely held stock. That's thanks in large part to generations of GE Transportation employees who built their retirement plans on company stock.
The value of those shares nearly doubled in 2023, rising 95% to $127.67.
That growth is expected to continue, but at a slower pace.
According to a CNN Business report. the 13 analysts who follow GE offered a 12-month forecast with a median target of $140 and a high estimate of $155.
Not all stocks of local interest ended the year in positive territory. Two utilities and two publicly traded banks were among those to see stock prices slip, at least slightly.
Natural gas prices fall along with NFG stock
The good news for customers of National Fuel Gas is that prices declined over the past year. The bad news for investors is that shares of the company also fell.
NFG stock fell 20.7% to close the year at $50.17.
Penelec parent company sees price decline
Ohio-based FirstEnergy Corp., parent company of electric utility Penelec, lost 12.5% of its value as the stock closed the year at $36.66.
Bank stocks had a tough year
Bank stocks are at an all-time low compared to the S&P 500, according to a Reuters report that detailed findings from Bank of America Global Research.
Pittsburgh-based PNC Financial Services Group was part of that broader trend. The company's stock fell 1.9% to close the year at $154.85.
Finally, Northwest Bancshares Inc., parent company of Warren-based Northwest Bank, fell 10.7% as the stock ended the year at $12.48.
Contact Jim Martin at jmartin@timesnews.com.
This article originally appeared on Erie Times-News: Erie Indemnity, Wabtec and GE stocks returned strong results in 2023
