Home Market News Defense Stocks Lead Industrial Gainers as Airlines Decline Following Attack on Israel

Defense Stocks Lead Industrial Gainers as Airlines Decline Following Attack on Israel

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Defense Stocks Lead Industrial Gainers as Airlines Decline Following Attack on Israel

Last week, defense stocks emerged as the top performers in the industrial sector, while airline stocks experienced a decline in the aftermath of an attack on Israel by Hamas. The Industrial Select Sector (XLI) saw a rise of +0.96% for the week ending October 13, while the SPDR S&P 500 Trust ETF (SPY) recorded a modest increase of +0.46%. Since the beginning of the year, XLI has gained +3.60%, while SPY has climbed +12.83%.

The top five gainers in the industrial sector, with market caps over $2 billion, all saw increases of more than +11% during the week, three of which have remained in positive territory year-to-date.

Northrop Grumman (+15.81%)

Northrop Grumman, a drone manufacturer based in Falls Church, Virginia, experienced a stock jump of +11.43% on Monday following the attack on Israel. The SA Quant Rating for Northrop Grumman is Hold, with a factor grade A for Profitability but an F for Growth. While the average Wall Street Analysts’ Rating is Buy, with 8 out of 23 analysts categorizing the stock as Strong Buy, the stock has seen a YTD decline of -10.16%.

Symbotic (+12.53%)

Symbotic, a company specializing in warehouse automation systems, has witnessed a rebound in stock performance in recent weeks after a period of slowdown in September and August. Year-to-date, the shares have soared +228.64%, making it the best-performing stock among the top gainers for the week. The SA Quant Rating for Symbotic is Hold, and the average Wall Street Analysts’ Rating is Buy with 8 out of 13 analysts considering it a Strong Buy.

Leonardo DRS (+12.04%)

Leonardo DRS, a defense electronic system maker based in Arlington, Virginia, experienced a stock rise of +5.63% on Monday. Year-to-date, the shares have gained +47.81%. The average Wall Street Analysts’ Rating for Leonardo DRS is Strong Buy, with 4 out of 5 analysts holding this view.

Kratos Defense & Security Solutions (+12.03%)

Kratos Defense & Security Solutions, headquartered in San Diego, California, saw its stock surge by +11.10% on Monday. Year-to-date, the shares have risen +64.24%. The SA Quant Rating for Kratos Defense & Security Solutions is Hold, while the average Wall Street Analysts’ Rating is Buy.

Plug Power (+11.04%)

Plug Power experienced a boost in its stock price on Tuesday, rising by +11.70%, after an investor presentation revealed expectations of generating significant revenues in the coming years. According to the presentation, the company anticipates revenue of approximately $6 billion by 2027 and $20 billion by 2030. Despite the recent increase, Plug Power has seen a YTD decline of -40.66%, the biggest among the top gainers for the week. The SA Quant Rating for Plug Power is Sell, while the average Wall Street Analysts’ Rating is Buy.

Conversely, the top five decliners in the industrial sector, with market caps over $2 billion, all experienced losses of more than -7% during the week, with two of them remaining in negative territory year-to-date.

American Airlines (-8.15%)

American Airlines, based in Fort Worth, Texas, suspended direct flights to Israel in response to advisories from the U.S. and Israel following the recent attack. Flights to Israel by international carriers were reportedly down by approximately 90% compared to the previous week. Year-to-date, American Airlines has seen a decline of -7.86%. The SA Quant Rating for American Airlines is Hold, with a factor grade A for Profitability and D for Momentum. The average Wall Street Analysts’ Rating aligns with a Hold rating, with 14 out of 21 analysts holding this view.

WESCO International (-8.15%)

WESCO International, a provider of business-to-business distribution and logistics services, experienced the biggest stock drop on Friday, falling by -8.06%. Year-to-date, the shares have gained +6.79%. The SA Quant Rating for WESCO International is Hold, with a score of A+ for Growth and B- for Valuation. Interestingly, the average Wall Street Analysts’ Rating differs significantly, with 8 out of 12 analysts categorizing the stock as Strong Buy.

Delta Air Lines (-7.84%)

Delta Air Lines experienced the largest dip on Monday, falling by -4.65%, amidst the conflict in Israel. The company stated that it would suspend flights to Israel until the end of October. Despite this decline, Delta Air Lines beat Q3 estimates in its recent earnings report. Year-to-date, Delta Air Lines has risen +3.77%. The SA Quant Rating for Delta Air Lines is Buy, with a score of A+ for Profitability and A for Growth. The average Wall Street Analysts’ Rating is Strong Buy, with 14 out of 20 analysts holding this view.

United Airlines (-7.41%)

United Airlines, based in Chicago, has indefinitely suspended flights to Israel. Year-to-date, the company has seen a gain of +2.71%. The SA Quant Rating for United Airlines is Hold, while the average Wall Street Analysts’ Rating is Buy.

MasTec (-7.40%)

MasTec, an infrastructure construction company, received an upgrade to Buy at Craig-Hallum Capital but failed to see a boost in stock performance. Year-to-date, the shares have declined -25.24%, the largest decrease among the worst performers for the week. The SA Quant Rating for MasTec is Sell, while the average Wall Street Analysts’ Rating is Strong Buy.

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