On a Terrible Day for Wall Street, These 2 Stocks Hit All-Time Highs

Investors are scared about inflation, and on Friday, they'll get the latest reading on consumer prices in the U.S. Most economists don't expect much relief in the year-over-year change in the Consumer Price Index, which could lead the Federal Reserve to take even more-dramatic action in an attempt to curb price pressures. In response, the Dow Jones Industrial Average (^DJI 0.06%), S&P 500 (^GSPC -0.22%), and Nasdaq Composite (^IXIC -0.52%) fell sharply, with losses accelerating toward the end of the day.

Data source: Yahoo! Finance.

Surprisingly, there were a couple of stocks that managed not only to post modest gains but to climb to all-time highs on Thursday. Below, we'll get into more detail about how PDC Energy (PDCE) and Penske Automotive Group (PAG -1.03%) defied the downward move across the stock market and moved into record territory.

PDC gets an energy win

Shares of PDC Energy were up more than 3% on Thursday. The oil and gas exploration and production company heard good news from a key regulatory agency that could allow drilling activity to move forward in the near future.

PDC announced late Wednesday that the Colorado Oil and Gas Conservation Commission had met and approved the energy company's application for permits in a promising area in rural parts of north-central Colorado. PDC's Kenosha Oil & Gas Development Plan covers 69 wells on three pads in Weld County, and the company sees the incremental activity as adding to its inventory of permitted projects and gives it plenty of drilling and completion work through 2023 and into 2024.

The win marks the second development plan that PDC has had approved, and the company is optimistic that its strong relationship with regulators could help it in the future as well. Certainly with oil and gas prices as high as they are, the environment is positive for energy companies with the capacity to expand production.

PDC shares are up 65% so far in 2022, reflecting the surge in oil and gas generally. The company is vulnerable to a pullback in the energy market, but some believe that further gains are more likely than a move lower for oil and gas, at least for the foreseeable future.

Penske hits the gas

Elsewhere, shares of Penske Automotive Group moved up by almost 1%. The auto and commercial truck dealership company has seen its stock rise 50% in the past year, and incredibly favorable conditions in the automotive market are contributing to extremely strong results.

Penske has enjoyed a surge in earnings because of the lack of availability of inventory for vehicles. Car buyers are routinely paying sticker price or above in order to get vehicles, with supply chain challenges forcing would-be shoppers to wait for months to get the vehicle of their choice. Profits more than doubled in 2021 compared to 2020 levels as a result, and 2022 looks like it will stay on its favorable trajectory.

Investors have been skeptical about how long the good times will last for Penske. The stock trades at just over eight times its earnings in 2021 and roughly seven times projected net income for 2022. Even if earnings return to pre-pandemic levels, Penske would still have a reasonably inexpensive valuation.

The concern among some investors is that Penske could see demand fall in a recession. Yet with pent-up demand for vehicles, it's hard to envision that scenario playing out quickly.