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The Industrial Select Sector (XLI) experienced a decline of 3% during the week ending on October 20th. In a similar fashion, the SPDR S&P 500 Trust ETF (SPY) also dipped, with a decrease of 2.39%, influenced by geopolitical concerns and a bond sell-off that caused Treasury yields to rise.
Out of the 11 S&P 500 sectors, XLI was one of the nine that ended the week in negative territory. Year-to-date, XLI has shown a modest increase of 0.50%, while SPY has experienced a more substantial gain of 10.14%.
This week, all the top five gainers in the industrial sector, among stocks with a market capitalization of over $2 billion, saw increases of more than 4%. Three out of these five stocks have also shown positive growth year-to-date.
Spirit AeroSystems Holdings (NYSE: SPR) witnessed an impressive surge of 23.09% in stock price on Wednesday after announcing a partnership with Boeing to boost production capacity and enhance quality. However, it is important to note that year-to-date, the stock has experienced a substantial decline of -27.60%, making it the top gainer of the week but also the largest loser among the top five gainers overall.
When considering the SA Quant Rating, which evaluates factors such as Momentum, Profitability, and Valuation, Spirit AeroSystems Holdings holds a Sell rating. The stock scores a D for Profitability and an F for Growth. On the other hand, the average Wall Street Analysts’ Rating for the stock leans towards a Hold rating, with 10 out of 18 analysts endorsing it as such.
Knight-Swift Transportation (KNX) experienced a notable increase of 11.75% in its stock price on Friday following Q3 results that exceeded expectations. Year-to-date, however, KNX has showed a minor decline of -2.18%.
The SA Quant Rating for KNX is set at Hold, with a score of C- for Momentum and B- for Valuation. Conversely, the average Wall Street Analysts’ Rating for the stock is more optimistic, with 12 out of 19 analysts viewing it as a Strong Buy.
The chart below illustrates the year-to-date price-return performance of the top five gainers and SPY:
Symbotic (SYM) secured a spot among the top five gainers for the second consecutive week. The company specializes in providing warehouse automation systems. After experiencing a slowdown in early September and August, SYM has recently seen a resurgence in gains. Year-to-date, the stock has skyrocketed by an impressive 246.48%, making it the top performer among this week’s gainers.
With an SA Quant Rating of Hold and a score of A+ for Momentum and C+ for Growth, SYM’s rating stands in contrast to the average Wall Street Analysts’ Rating, which leans towards a Buy rating. Eight out of 13 analysts view the stock as a Strong Buy.
AeroVironment (AVAV), a drone maker based in Arlington, Va., witnessed a gradual increase in its stock price throughout the week (excluding Friday). Year-to-date, AVAV has experienced a notable gain of 36.43%. The SA Quant Rating for AVAV is set at Hold, while the average Wall Street Analysts’ Rating leans towards Buy.
Embraer (ERJ), a Brazilian aircraft manufacturer, saw a rating upgrade to Buy at Citi and announced a recent order from American Airlines for four regional jets. ERJ exhibited a weekly increase of 4.70% and a year-to-date gain of 28.45%. The SA Quant Rating for ERJ is Hold, but the average Wall Street Analysts’ Rating labels it as a Buy.
This week’s top five decliners among industrial stocks, with market capitalizations of over $2 billion, all experienced losses greater than 9%. Three out of these five stocks have also exhibited negative growth year-to-date.
Rentokil Initial (NYSE: RTO) faced a significant decline of 24.42% in its stock price. The pest control company, which recently acquired Terminix Global, experienced the sharpest drop on Thursday, with its shares falling by 14.81%.
The SA Quant Rating for RTO is set at Hold, with a factor grade of B+ for Profitability and C- for Momentum. In contrast, the average Wall Street Analysts’ Rating leans towards a Buy rating, with 2 out of 3 analysts endorsing it as a Strong Buy.
Plug Power (PLUG), after being listed as one of the gainers last week, found itself among the decliners this week with a considerable decrease of 16.89%. The Latham, N.Y.-based company experienced the most significant drop on Wednesday, with shares falling by 9.33%. Year-to-date, PLUG has shown a substantial decline of -50.69%, making it the largest loser among this week’s worst performers.
With an SA Quant Rating of Sell and a score of D- for Momentum and C+ for Valuation, the rating for PLUG is in stark contrast to the average Wall Street Analysts’ Rating, which leans towards a Buy rating. Eighteen out of thirty-one analysts view the stock as a Strong Buy.
The chart below illustrates the year-to-date price-return performance of the five worst decliners and XLI:
Generac (GNRC), a generator manufacturer, experienced a gradual decline in stock price throughout the week. Year-to-date, the stock has exhibited a loss of -12.20%. The SA Quant Rating for GNRC is set at Hold, with a score of C- for Profitability and D+ for Growth. This rating diverges from the average Wall Street Analysts’ Rating, which leans towards a Buy rating, with 11 out of 28 analysts viewing it as a Strong Buy.
Terex (TEX), a Norwalk, Conn.-based company specializing in lifting and material-handling machinery and vehicles, witnessed a decline of -9.48% in its stock price on Wednesday after providing a disappointing earnings outlook on Tuesday (after the market closed). However, year-to-date, the stock has exhibited a respectable gain of 11.56%. The SA Quant Rating for TEX is Strong Buy, while the average Wall Street Analysts’ Rating leans towards Buy.
SiteOne Landscape Supply (SITE), an organization based in Roswell, Ga., experienced the steepest decline on Wednesday, with shares falling by 8.60%. Year-to-date, SITE has shown a notable gain of 17%. The SA Quant Rating for SITE is set at Hold, which differs from the average Wall Street Analysts’ Rating, which leans towards a Buy rating.