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.