ARNC - Builders FirstSource climbs to top industrial gainer Spirit AeroSystems tumbles in earnings impact week

2023-05-06 12:35:06 ET

The Industrial Select Sector ( XLI ) fell for the second week in a row, ending -0.49% . XLI and was among the eight, out of the 11 S&P 500 sectors, which closed the week in red. The SPDR S&P 500 Trust ETF ( SPY ) sunk -0.79% amid a week which saw the Federal Reserve hiking rates by 25 basis points, and a banking crisis which keeps seeing new events, this time First Republic Bank being taken over by JPMorgan.

The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +11% each this week. YTD, all these 5 stocks are in the green.

Builders FirstSource ( NYSE: BLDR ) +17.39% . Shares of the Dallas-based company rose +12.88% on Wednesday after Q1 results beat estimates.

BLDR has a SA Quant Rating — which takes into account factors such as Momentum, Profitability, and Valuation among others — of Hold . The stock has a factor grade of A+ for Profitability but F for Growth. The average Wall Street Analysts' Rating differs with a Buy , wherein 7 out of 13 analysts see the stock as Strong Buy. YTD, the stock has surged +71.47% , the most among this week's top five gainers.

Arconic ( ARNC ) +17.37% . On Thursday, Arconic said it was being acquired by private equity firm Apollo Global at an enterprise value of ~$5.2B which sent the shares of the aluminum products maker soaring +28.29% . The company also reported mixed Q1 results .

The SA Quant Rating on ARNC was Hold with score of B- for Valuation and C for Momentum. The average Wall Street Analysts' Rating agrees with a Hold rating of its own, wherein 3 out of 3 analysts tagged the stock as such. YTD, +37.29% .

The chart below shows YTD price-return performance of the top five gainers and SP500:

SPX Technologies ( SPXC ) +16.36% . The company's stock rose +20.14% on after Q1 results exceeded analysts expectations and the company raised its outlook for the year.

SPXC has a SA Quant Rating of Buy with factor grade of B- for Momentum and C- for Valuation. Meanwhile, the average Wall Street Analysts' Rating is Strong Buy , wherein 5 out of 5 analysts view the stock the same. YTD, +12.87% .

Woodward ( WWD ) +13.39% . Second quarter results of the aerospace products maker propelled the stock +15.38% on Tuesday. YTD, the shares have risen +12.70% . The SA Quant Rating and the average Wall Street Analysts' Rating, both, on WWD is Hold .

Generac ( GNRC ) +11.70% . Earnings played kingmaker again as the generator maker' stock climbed +11.61% on Wednesday after first-quarter profit and sales beat estimates. The SA Quant Rating on GNRC is Hold , which is in contrast to the average Wall Street Analysts' Rating of Buy . YTD, +13.43% .

This week's top five decliners among industrial stocks (market cap of over $2B) all lost more than -9% each. YTD, 3 out of these 5 stocks are in the red.

Spirit AeroSystems ( NYSE: SPR ) -17.54% . Shares of the airplane parts maker fell -12.28% on Wednesday after Q1 adjusted loss per share and revenue missed analysts' expectations .

The SA Quant Rating on SPR is Hold with a factor grade of C+ Valuation C- for Momentum. The average Wall Street Analysts' Rating differs with a Buy , wherein 5 out of 15 analysts see the stock as Strong Buy. YTD, -17.09% .

Mercury Systems ( MRCY ) -15.80% . Shares of the company, which makes products for the aerospace and defense sector, fell despite FQ3 results beating estimates, but the it lowered it lowered the outlook range for GAAP net income and adjusted EBITDA.

The SA Quant Rating on MRCY is Hold with a factor grade of A+ for Growth but D+ for Profitability. The rating is in contrast to the average Wall Street Analysts' Rating of Buy , wherein 3 out of 8 analysts tag the stock as Strong Buy. YTD, -10.28% .

The chart below shows YTD price-return performance of the worst five decliners and XLI:

Embraer ( ERJ ) -14.05% . The Brazilian aircraft maker saw its stock slump throughout the week, the most on Thursday -9.02% after its first quarter results . The SA Quant Rating on ERJ is Hold , with a score of A+ for Momentum but D for Growth. The average Wall Street Analysts' differs with a Buy rating, wherein 7 out of 14 analysts view the stock as Strong Buy. YTD, the stock has risen +21.50% , the most among this week's top five decliners.

ADT ( ADT ) -14.03% . The company's shares fell -14.26% on Tuesday after Q1 revenue came short of expectations. The SA Quant Rating on ADT is Hold , while the average Wall Street Analysts' Rating is Buy . YTD, -36.49% , the most among this week's worst five performers.

WESCO ( WCC ) -9.74% . Despite first quarter results surpassing estimates, shares of the supply chain solutions provider fell -14.72% on Thursday.  The SA Quant Rating and the average Wall Street Analysts' rating, both, on WCC is Strong Buy . YTD, +3.81% .

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