The week ending Oct. 21, saw a strong performance from the industrial sector as the broader market also gained. The SPDR S&P 500 Trust ETF ( SPY ) was back in the the green ( +4.66% ) aided by hopes that even though the U.S. Federal Reserve may raise rates by 75 basis points in November there could be discussions on the pace of tightening afterwards. YTD, SPY has declined -21.20% .
Vertiv led the charge among the industrial gainers (in our segment), while earnings and outlook played a key role among this week's worst five performers. The Industrial Select Sector SPDR ( XLI ) too gained ( +4.66% ) after losses last week. However, YTD XLI is -16.18% .
The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +14% each this week. However, YTD, only one these five stocks is in the green.
Vertiv ( NYSE: VRT ) +29.26% . The stock rose throughout the week amid activist investor Starboard disclosing a 7.4% stake in the Ohio-based company which provides equipment/services to data centers. However, YTD the stock has slumped -47.10% — the most among this week's top five gainers for this period. Vertiv was the worst performing industrial stock (in this segment) in H1 ( -67.12% ) and also found itself among the top five decliners about a month ago.
The SA Quant Rating on VRT is Hold , which takes into account factors such as Momentum, Profitability, and Valuation among others. VRT has a factor grade of D+ for both Profitability and Growth. The average Wall Street Analysts' Rating differs with a Buy rating, wherein 4 out of 10 analysts see the stock as Strong Buy.
Eve ( EVEX ) +22.53% . The Florida-based company's stock rose the most on Oct. 20 ( +9.85% ). The eVTOL (electric vertical takeoff and landing) aircraft maker has seen some substantial gains in the past three months. The stock lead the industrial gainers (in this segment) for three weeks straight and was among the top five gainers in Q3 ( +40% ). But the stock has also seen some volatility as it landed among the worst five performers twice after its three- week gain run. YTD, the stock has shed -3.83% .
The SA Quant Rating on the shares is a Hold , with Momentum possessing a factor grade of A- but Valuation with an F score. The average Wall Street Analysts' Rating differs with a Buy rating, wherein out of the 4 analysts, 2 tag the stock as a Strong Buy while the remaining two see it as Hold.
The chart below shows YTD price-return performance of the top five gainers and SP500:
Lockheed Martin ( LMT ) +16.74% . The defense stock saw its the biggest one-day gain ( +8.69% ) on Oct. 18 since March 2020, after Q3 EPS beat estimates and the company increased its stock buyback authorization by $14B. Lockheed also topped the list of Pentagon contracts recipients at $39.2B in 2021. Lockheed also inked contracts with NASA for three Orion spacecraft and another with the U.S. army .
YTD, the stock has surged +27.91% , the only one among this week's top five gainers which is in the green for this period. The results also drew Wall Street to re-evaluate LMT's rating. The average Wall Street Analysts' Rating on LMT is Hold with 12 out of 20 analysts tagging the stock as such. The SA Quant rating agrees with a Hold rating of its own, with an A- score for Momentum but a factor grade of F for Growth.
First Advantage ( FA ) +14.06% . The Atlanta-based company, which provides workforce screening solutions, saw its stock rise throughout the week. However, YTD, FA has declined -22.90% . The SA Quant Rating on the stock is Hold , with a factor grade of C for Valuation and B+ for Profitability. The rating is in contrast to the average Wall Street Analysts' Rating of Buy , wherein 5 out of 9 analysts see the stock as Strong Buy.
United Airlines ( UAL ) +14.01% . The Chicago-based company's shares gained after Q3 results surpassed analysts expectations and the company signaled continued confidence through Q4. United CEO suggested that hybrid work has made travel demand 'permanently higher.' The SA Quant rating on UAL is Strong Buy , with a factor grade of A for Profitability and B for Growth. The average Wall Street Analysts' Rating is Buy with 6 out of 20 analysts tag the stock as Strong Buy. YTD, the stock is declined -7.63% .
This week's top five decliners among industrial stocks (market cap of over $2B) all lost more than -8% each. YTD, all these five stocks are in the red.
Generac ( NYSE: GNRC ) -20.05% . The stock fell steeply on Oct. 19 ( -28.24% ) after the Wisconsin-based power generator maker cut its full-year outlook and Q3 revenue guidance. The lowered forecast saw Wall Street taking action and brought in a flurry of downgrades .
GNRC has now made to the decliners list for the third week in a row. YTD, the stock has plunged -68.89% , the most among this week's worst five performers for this period. The SA Quant Rating on the stock is Hold , with score of C for Valuation and F for Momentum. The average Wall Street Analysts' Rating differs with a Buy rating, wherein 12 out of 22 analysts see the stock as Strong Buy.
Robert Half International ( RHI ) -9.86% . The California-based staffing company's stock slumped after Q3 earnings and revenue came below estimates. The Q3 miss lead to a downgrade of the stock to Neutral at JPMorgan. The SA Quant Rating on the shares is Hold , with a factor grade of A for Profitability but D- for Growth. The average Wall Street Analysts' Rating agrees with a Hold rating of its own, wherein 5 out of 13 analysts see the stock as such. YTD, the stock has fallen -34.53% .
The chart below shows YTD price-return performance of the worst five decliners and XLI:
Ameresco ( AMRC ) -8.90% . The stock has seen a lot of volatility in the past few months. The Framingham, Mass.-based company, which provides renewable energy solutions, was among the top five performers for Q3 (in this segment) +44.93% , but was among the worst five list in Q2. AMRC was also among the top five decliners two weeks ago. YTD, the stock has shed -31.25% . The average Wall Street Analysts' Rating is Strong Buy , wherein 10 out of 13 analysts see the stock as such. The rating is in contrast to the SA Quant Rating of Hold , with a factor grade of A+ for Momentum and a D- for Valuation.
Kanzhun ( BZ ) -8.78% . The Beijing-based company is eyeing an IPO in Hong Kong and filed with the exchange for dual primary listing status. SA contributor Bamboo Works wrote that the online recruitment platform is not alone in seeking security of a second share-trading venue amid any potential regulatory challenges in the U.S., or any unpleasant change in China-U.S. relations.
Kanzhun stock too has been very volatile this year. BZ was among the top five decliners in Q3 ( -38.60% ) and saw its fare share of ups and downs. YTD, the stock has slumped -59.20% . The SA Quant Rating on the stock is Strong Sell , with a factor grade of F for Valuation and D+ for Profitability. The rating is in stark contrast to the average Wall Street Analysts' Rating of Strong Buy , wherein 8 out of 12 analysts tag the stock Strong Buy.
Plug Power ( PLUG ) -8.54% . The stock slumped the most on Oct. 19 after the Latham, New York-based company cut its full-year forecast for hydrogen production. PLUG has landed among the decliners for the second week straight and YTD, has fallen -41.59% . The average Wall Street Analysts' Rating on PLUG is Buy , wherein 15 out of 30 analysts see the the stock as Strong Buy. The SA Quant Rating differs with a Hold rating, with a B- score for Growth and C- for Momentum.
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Vertiv climbs to top industrial gainer, gloomy outlook makes Generac see No. 1 loser tag