ZIM - XPO drives to top industrial gainer of week Mexican airport operators among losers

2023-04-22 12:35:47 ET

The Industrial Select Sector ( XLI ) was among the six, out of the 11 S&P 500 sectors, which closed the week in green ( +0.78% ). However, the SPDR S&P 500 Trust ETF ( SPY ), dipped ( -0.06% ) amid the earnings season kicking off.

The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +8% each this week. YTD, all these 5 stocks are in the green.

XPO ( NYSE: XPO ) +32.19% . The trucking services provider's stock rose the most on Thursday ( +17.96% ) which extended into Friday ( +7.92% ) after multiple analysts upgrades . Citi moved to Buy voicing optimism on the appointment of new COO Dave Bates, while JP Morgan also shifted to a Buy equivalent rating given the implications for efficiency improvements.

However, XPO has a SA Quant Rating — which takes into account factors such as Momentum, Profitability, and Valuation among others — of Sell . The stock has a factor grade of B+ for Profitability but F for Growth. The average Wall Street Analysts' Rating disagrees with a Buy rating, wherein 8 out of 22 analysts see the stock as Strong Buy. YTD, +32.23% .

Snap-on ( SNA ) +9.61% . Shares of the industrial machinery maker soared after Q1 results beat estimates, wherein revenue grew +7.8% Y/Y. The SA Quant Rating on SNA is Hold with score of B- for Momentum and C for Valuation. The average Wall Street Analysts' Rating agrees with a Hold rating of its own, wherein 5 out of 11 analysts tag the stock as such. YTD, +15.11% .

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

Watsco ( WSO ) +8.48% . The Miami-based company, which distributes heating and cooling products, reported its quarterly results on Thursday which sent the stock soaring ( +8.32% ). GAAP EPS beat estimates but revenue narrowly missed out.

The SA Quant Rating on WSO is Hold with a score of D+ for Growth and A- for Momentum. The average Wall Street Analysts' is also Hold , wherein 7 out of 14 analysts view the stock as Hold. YTD, +35.69% .

Spirit AeroSystems ( SPR ) +8.43% . The stock rose the most on Tuesday +7.80% which was followed. The next day the aero-defense products maker saw an upgrade to Buy from Neutral by analysts at Benchmark. The SA Quant Rating on SPR is Hold , which is in contrast to the average Wall Street Analysts' Rating of Buy . YTD, +3.38% .

TopBuild ( BLD ) +8.07% . The Florida-based company, which installs and distributes insulation and other building materials, YTD has seen its stock surge +39.28% , the most among this week's top five gainers for this period. The SA Quant Rating on BLD is Strong Buy , while the average Wall Street Analysts' Rating is Buy .

This week's top five decliners among industrial stocks (market cap of over $2B) all lost more than -6% each. YTD, only 1 out of these 5 stocks is in the red.

Grupo Aeroportuario del Centro Norte ( NASDAQ: OMAB ) +12.83% . Citi reinstated its Sell rating on the shares of the Mexican airport operator on Tuesday amid nearshoring concerns. Stock started tumbling on Tuesday and continued a downward trend till the end of the week.

The SA Quant Rating on OMAB is Strong Buy with a score of A- Profitability and A+ for Momentum. The average Wall Street Analysts' Rating is Buy , wherein 4 out of 8 analysts view the stock as Strong Buy. YTD, +27.04%.

ZIM Integrated Shipping Services ( ZIM ) -11.09% . The Israeli shipping company' stock fell throughout the week and the most on April 21 ( -5.68% ) after J.P. Morgan downgraded the shares to Neutral. The SA Quant Rating on ZIM is Hold with a factor grade of A+ for Valuation but F for Growth. 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. YTD, +11.98% .

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

Grupo Aeroportuario del Pacífico ( PAC ) -10.17% . OMAB's peer PAC was also among the decliners' this week. PAC shares fell -5.81% on Tuesday following Q1 results . The SA Quant Rating on PAC is Strong Buy , with a score of A- for Profitability and B+ Growth. The average Wall Street Analysts' Rating is Buy , wherein 3 out of 10 analysts tag the stock as Strong Buy. YTD, +20.67% .

Herc Holdings ( HRI ) -7.35% . The Florida-based equipment rental supplier Q1 results beat estimates but the stock still fell -4.88% on Thursday following the quarterly report. The SA Quant Rating on HRI is Hold , which differs from the average Wall Street Analysts' Rating of Buy . YTD, the shares have fallen -21.68% and the stock is the only one among this week's decliners which is in the red for this period.

Grupo Aeroportuario del Sureste ( ASR ) -6.86% . Another Mexican airport operator made to the list. However like its peers, ASR is in the green YTD, +21.44% . The SA Quant Rating on ASR is Strong Buy , while the average Wall Street Analysts' rating is Buy .

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