SPY - M&A talk drives Arconic to top industrial gainer of week earnings weigh down Ameresco

2023-03-04 12:35:01 ET

The week ending March 3 saw the Industrial Select Sector among gains ( XLI ) ( +3.35% ). ISM Manufacturing improved marginally in February, though less than forecasted. Meanwhile, PMI Manufacturing came below consensus for February.

XLI was among the 9, out of the 11 S&P 500 sectors, which closed the week in green. The SPDR S&P 500 Trust ETF ( SPY ) also gained this week ( +1.97% ), amid comments from a Federal Reserve official on Thursday which were perceived as dovish. The positive tone of the market continued on Friday.

The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +13% each this week.

Arconic ( NYSE: ARNC ) +24.60% . The stock surged +19.48% on Tuesday on a report that private equity firm Apollo Global was in discussions to acquire the aerospace-parts maker. Earlier on Tuesday, the Pittsburgh, Pa-based aluminum products maker was downgraded to Sell at Goldman Sachs on uncertain demand in Europe and delays in projects.

ARNC has a SA Quant Rating — which takes into account factors such as Momentum, Profitability, and Valuation among others — of Hold . The stock had a factor grade of C- for Profitability and C+ for Growth. The rating is in contrast to the average Wall Street Analysts' Rating of Buy , wherein 2 out of 4 analysts see the stock as Strong Buy.

Dycom Industries ( DY ) +18.83% . Dycon's Q4 results , which beat analysts estimates, sent the stock soaring on Wednesday ( +15.21% ). The SA Quant Rating on DY is Buy , with a score of A for Growth B- for Valuation. The average Wall Street Analysts' Rating is Strong Buy rating, wherein 6 out of 7 analysts view the stock as such.

The chart below shows past 6-month price-return performance of the top five gainers and SP500:

AAON ( AAON ) +15.28% . The Tulsa, Okla.-based air conditioning and heating products maker saw its stock rise on Tuesday ( +11.62% ) after Q4 EPS and revenue surpassed analysts expectations.

The SA Quant Rating on AAON is Hold , with a factor grade of A+ for Momentum but F for Valuation. Meanwhile, the average Wall Street Analysts' Rating is Buy , wherein 2 out of 4 analysts tag the stock as Strong Buy.

Axon Enterprise ( AXON ) +14.16% . The Taser maker's stock climbed on Wednesday ( +10.36% ) after fourth quarter results exceeded consensus. However, on Thursday Axon was downgraded to Neutral at JPMorgan noting that the shares have become expensive after surging more than 30% YTD. The average Wall Street Analysts' Rating on AXON is Buy , while the SA Quant Rating is Hold .

Air Transport Services Group ( ATSG ) +13.45% . The Wilmington, Ohio-based company pared off losses from the prior week following its quarterly results on Feb. 24 which sent the stock tumbling down ( -18.80% ). The SA Quant Rating on ATSG is Sell , which is in start contrast to the average Wall Street Analysts' Rating of Strong Buy .

This week's top five decliners among industrial stocks (market cap of over $2B) all lost more than -3% each.

Ameresco ( NYSE: AMRC ) -9% . The energy efficiency solutions provider's stock slumped on Tuesday (-15.15%) after Q4 results missed analysts expectations. The company also announced an agreement to acquire Enerqos Energy Solutions.

The SA Quant Rating on AMRC is Hold , with a factor grade of A- for Growth but D for Profitability. The average Wall Street Analysts' Rating differs with a Strong Buy rating, wherein 10 out of 13 analysts see the stock as such.

ZIM Integrated Shipping Services ( ZIM ) -6.55% . The Israeli shipping company's stock dipped the most on Thursday ( -5.26% ). However, YTD, the shares have risen +30.37% . SA contributor Bohdan Kucheriavyi writes, ZIM Integrated: This Is The Inflection Point.

The SA Quant Rating on ZIM is Hold , with a score of D- for Momentum and A+ for Valuation. The average Wall Street Analysts' Rating agrees with a Hold rating of its own, wherein 3 out of 7 analysts see the stock as such.

The chart below shows past 6-month price-return performance of the worst five decliners and XLI:

Star Bulk Carriers ( SBLK ) -3.46% . Zim's shipping peer, Star Bulk also saw its shares fall on most on Thursday (-3.74%). YTD the stock has gained +23.40% . The SA Quant Rating on SBLK is Hold , with a score of A+ for Profitability but F for Growth. The average Wall Street Analysts' Rating completely differs with a Strong Buy rating, wherein 5 out of 6 analysts see the stock as Strong Buy.

McGrath RentCorp ( MGRC ) -3.37% . On Thursday the Livermore, Calif.-based company said it acquired the assets of Colorado-based Brekke Storage. The SA Quant Rating on MGRC is Hold , while average Wall Street Analysts' Rating is Strong Buy ( 2 out of 2 analysts).

ADT ( ADT ) -3.16% . The security and smart home solutions provider saw its stock dip on Tuesday (-4.07%) despite a Q4 revenue beat.  The SA Quant Rating on ADT is Hold , which is in contrast to the average Wall Street Analysts' rating of Buy .

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