ZWS - Kanzhun climbs to top industrial gainer of week earnings show drags down losers

2023-07-29 12:35:55 ET

The Industrial Select Sector ( XLI ) rose +0.56% for the week ending July 28, being among the 7 out of the 11 S&P 500 sectors, which closed the week in green.

The SPDR S&P 500 Trust ETF ( SPY ) climbed +1.05% in the week, which saw the earnings season speeding up, and the Federal Reserve pushing interest rates to a 22-year high, with another 25 basis points move. However, the Fed staff is no longer forecasting a recession. Meanwhile, European Central Bank and the Bank of Japan also carried out policy rate decisions.

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, 4 out of these 5 stocks are in the green.

Kanzhun ( NASDAQ: BZ ) +21.45% . Shares of the Beijing-based online recruitment platform rose the most on Monday +11.69% . The stock also got a boost on Friday ( +7.67% ) helped by a surge in Chinese stocks. BZ was the top decliner about two months but since then it has recovered some of its losses; May 26 YTD the stock was down -29.95% , compared to YTD July 28, -7.71% .

However, Kanzhun is the only stock among this week's top gainers which is in the red YTD. The company's shares had also seen volatility in 2022.

BZ 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 B- for Profitability and A- for Growth. The average Wall Street Analysts' Rating differs completely with a Strong Buy rating, wherein 12 out of 17 analysts tag the stock as such.

Textron ( TXT ) +12.94% . The business jet maker's stock surged +11.87% on Thursday after Q2 non-GAAP EPS beat analysts estimates and the company raised its full year outlook.

The SA Quant Rating on TXT is Hold with score of B- for Momentum and D for Valuation. The rating is in contrast to the average Wall Street Analysts' Rating of Buy , wherein 6 out of 15 analysts tag the stock as Strong Buy. YTD, +7.88% .

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

Boeing ( BA ) +12.70% . The stock surged +8.72% on Wednesday, to a 52-week high, after Q2 results supassed expectations. Meanwhile, rival Airbus faced new potential supply-chain hurdles linked to Pratt & Whitney engine woes.

BA has a SA Quant Rating of Hold with factor grade of A+ for Profitability but F for Valuation. The average Wall Street Analysts' rating is Buy , wherein 15 out of the 25 analysts see the stock as Strong Buy such. YTD, +25.30% .

Zurn Elkay Water Solutions ( ZWS ) +11.38% . Milwaukee, Wis.-based company saw its stock climb +7.53% on Tuesday following second quarter results post market on Monday. YTD, the shares have surged +43.92% , the most among thiis week's top five gainers. The SA Quant Rating on ZWS is Hold , which is in contrast to the average Wall Street Analysts' Rating of Strong  Buy .

Emcor ( EME ) +11.28% . Second quarter results of the construction services provider exceeded analysts expectations which sent the stock surging +6% on Thursday. The SA Quant Rating on EME is Strong Buy , while the average Wall Street Analysts' Rating is Buy . YTD, +43.09% .

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

Hertz Global ( NASDAQ: HTZ ) -12.65% . The stock fell -11.65% on Thursday after the car rental company narrowly missed its Q2 revenue and adjusted EBITDA estimates.

The SA Quant Rating on HTZ is Hold with a factor grade of B- for Valuation and D for Profitability. The average Wall Street Analysts' Rating diagrees with a Buy rating, wherein 3 out of 8 analysts see the stock as Strong Buy. YTD, +3.64% .

Alaska Air ( ALK ) -11.14% . Shares tumbled -9.66% on Tuesday after forecasts for full year 2023 revenue came in under expectations, despite Q2 results beaing estimates. The SA Quant Rating on the airline is Buy with score of A for Growth but C- for Momentum. The average Wall Street Analysts' Rating has a more positive view with a Strong Buy rating, wherein 9 out of 14 analysts tag the stock as such. YTD, +12.06% .

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

Mueller Industries ( MLI ) -10.34% . The Collierville, Tenn.-based metal products maker's stock fell -9.89% on Tuesday after Q2 revenue and EPS declined Y/Y. The SA Quant Rating on MLI is Strong Buy with factor grade of A for Profitability and B- for Growth. One Wall Street Analysts rating is Strong Buy . YTD, the stock has soared +37.92% .

Moog ( MOG.A ) -9.61% . The aero-defence company's shares crashed -9.91% on Friday following mixed Q3 results. The SA Quant Rating on MOG.A is Hold , while the average Wall Street Analysts' Rating is Buy . YTD, +13.72% .

Southwest Airlines ( LUV ) -9.53% . The stock fell -8.94% on Thursday after the airline warned that the recent trend of lower unit revenue and higher costs could continue. The company's Q2 revenue beat estimates but the non-GAAP EPS number narrowly fell short of analysts' expectations.  The SA Quant Rating on LUV is Hold , while the average Wall Street Analysts' rating is Buy . YTD, +0.09% .

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