EVEX - Eve soars to No. 1 industrial gainer; capacity/recession concerns drag airlines to see losers tag

Electric air-taxi maker Eve rose to the top among gainers, while concerns related to fuel prices, capacity and a looming recession pushed airline stocks United and American, in their own way, to the decliners' list.

For the week ending July 23, eight out of the 11 sectors in the S&P 500 ended in the green . The SPDR S&P 500 Trust ETF ( SPY ) ended with gains ( +2.59% ) after declining a week ago, a trend which has been maintained YTD, as the ETF is -16.82% . The Industrial Select Sector SPDR ( XLI ) also saw gains ( +4.16% ) after being in the red a week before. YTD, XLI is -14.52% .

The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +13% each this week. However, YTD, only one out of these five stocks are in the green.

Eve ( NYSE: EVEX ) +23.85% . The Melbourne, Fla.-based company began the week by unveiling its first full-sized eVTOL (electric vertical take-off and landing vehicle) cabin mock-up which was followed up the week by announcing two tentative contracts, one for an order of up to 150 eVTOL vehicles with Embraer and BAE Systems, and another a collaboration with Halo Aviation as the launch customer for its Urban Air Traffic Management solution.

The SA Quant Rating on the shares is a Strong Sell , which which takes into account factors such as Valuation and profitability, among others things. The rating is in contrast to to the average Wall Street Analysts' Rating of Buy , wherein 1 analyst gives the stock a Strong Buy, while another has a Hold rating. YTD, Eve, which was a subsidiary of Brazilian aircraft maker Embraer before going public via a merger with SPAC Zanite Acquisition, has shed -18.37%.

Vertiv ( VRT ) +18.68% . The Ohio-based provider of equipment/services to data centers, which was the worst performing industrial stock (in this segment) in H1, gained throughout the week, barring July 18 ( -1.68% ). The SA Quant Rating on the stock is Strong Sell , with Profitability and Growth, both having a factor grade of C-. However, the average Wall Street Analysts' Rating differs and gives the stock a Buy rating, wherein 4 out of 10 analysts tag it as a Strong Buy: YTD, the stock has declined -57.51% , the most among this week's gainers.

The chart below shows YTD price-return performance of the top five gainers and SP500TR:

Mueller Industries ( MLI ) +15.82% . The plumbing products maker gained the most following its Q2 results (July  19 +14.49%) which saw its revenue rise +13.9% Y/Y. The SA Quant Rating and the average Wall Street Analysts' Rating, both have a Strong Buy rating on the stock. YTD, the stock has risen +4.19% , the only stock among this week's gainers which is in the green.

Plug Power ( PLUG ) +14.10% . The Latham, New York-based company was back among the gainers after being the worst decliner a week ago. However a week prior to that the stock was the top gainer . The SA Quant Rating on the stock is Sell , with Profitability having a factor grade of F and Growth having a C- factor grade. The rating is in contrast to the average Wall Street Analysts' Rating of Buy , wherein 14 out of 28 analysts give the stock a Strong Buy rating. YTD, the share price has fallen -37.51% .

Herc ( HRI ) +13.74% . The Bonita Springs, Fla.-based company, which rents earthmoving equipment, saw its stock rise throughout the week. Herc also reported Q2 results, beating revenue estimates but failed to beat non-GAAP EPS estimates. The average Wall Street Analysts' Rating on HRI is Buy , with an Average Price Target of $173.55, contradicting an SA Quant Rating of Hold . YTD, the stock has lost -33.13% .

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

United Airlines ( NASDAQ: UAL ) -6.32% . The Chicago-based company transitioned to the decliners' list after being among the gainers a week ago. The stock lost the most on July 21  ( -10.17% ) after CEO Scott Kirby warned of high fuel prices, a potential recession and operational challenges posing threats to the industry over the next six to 18 months. Q2 non-GAAP EPS missed estimates despite delivering its first profitable quarter since COVID-19 and the highest Q2 revenue tally in its history.

The SA Quant Rating on the stock is Buy , with Profitability having a factor grade of B+ and Momentum having a C factor grade. The average Wall Street Analysts' Rating is also Buy , wherein 6 out of 20 analysts give the stock a Strong Buy rating. YTD, UAL has declined -17.02% .

American Airlines ( AAL ) -5.46% . The Texas-based company's stock lost the most on July 21 ( -7.43% ) as capacity concerns overshadowed a Q2 top and bottom-line beat . The EPS was also the first positive figure reported by the airline in 9 quarters. The week also saw AAL sign a sustainable aviation fuel deal worth $2.75B with Gevo. The average Wall Street Analysts' Rating on AAL is Hold , wherein 14 out of 20 analysts tag it with a Hold rating. This differs with the SA Quant Rating of Strong Buy , with Profitability having a factor grade of C+ while Valuation having a factor grade of A. YTD, AAL has shed -23.83% .

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

Mercury Systems ( MRCY ) -3.69% . The Andover, Mass.-based aero/defense products maker saw its stock dip the most on July 18 (-8.83%) but recovered slowly as the week went on. The company signed a contract to provide radar testing systems to Leonardo UK. YTD, the stock has risen +11.35% . The average Wall Street Analysts' Rating is Buy . Meanwhile, the SA Quant Rating on the stock is Hold .

FTI Consulting ( FCN ) -2.97% . The Washington, D.C.-based company is the only one besides Mercury Systems which has been in the green YTD among this week's decliners. YTD the stock has gained +18.66% . The SA Quant Rating and the average Wall Street Analysts' Rating, both, on FCN is Strong Buy .

Hayward ( HAYW ). The Berkeley Heights, N.J.-based pool equipment maker may have shed only -2.94% this week but YTD, the stock has declined -48.38% . The average Wall Street Analysts' Rating is Buy , which differs with the SA Quant Rating of Hold .

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