United Airlines soars to top industrial gainer, AeroVironment dives to pick #1 loser tag

Apr. 23, 2022 12:35 PM ETUnited Airlines Holdings, Inc. (UAL), AVAVSPY, XLI, AAL, CAR, ABM, AAON, BZ, BE, PLUG, KTOSBy: Ravikash, SA News Editor6 Comments

United Airlines passenger aircraft - Boeing 777

gk-6mt/iStock Editorial via Getty Images

While United Airlines (NASDAQ:UAL) rose to the top for the week ending April 22 on a positive outlook, aerospace/defense and power/electric equipment stocks formed the majority in the decliners' list.

The SPDR S&P 500 Trust ETF (SPY) -2.68% was in the red for the third week in a row. YTD, the ETF is -10.30%. The Industrial Select Sector SPDR (XLI) -1.51% was in the red for a month now (4 weeks straight). YTD, XLI is -6.97%.

The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +7% each. YTD, all the stock are in the green, barring AAON which is -29.33%.

United Airlines (UAL) +14.03%. The Chicago-based company's stock rose the day after it reported its Q1 earnings on April 20 post market. Despite a miss on the headline figures, a forecast of better times ahead helped United Airlines stock soar. JPMorgan upgraded United Airlines to an Overweight rating after having the airline stock set all the way down at Underweight.

The airline sector was gliding higher on April 21 after strong earnings guidance from UAL, American Airlines (AAL) and Alaska Air Group. American Airlines rose +6.21% and would have taken #8 top gainer spot for the week in the top 10.

Avis Budget (CAR) +12.30%. The best performing industrial stock of this segment in 2021 (+455.95%) rose the most on April 20 (+11.94%) after Barclays upgraded the car and truck rental company to an Equal Weight rating from Underweight. The ratings move by the firm was part of it becoming incrementally more positive on the rental car industry as a whole. YTD, the stock has grown +43.74%.

The chart below shows 6-month total return performance of the top five gainers and SPY:

Valmont Industries +9.76%. The company, which provides products for the agriculture and infrastructure sectors, saw gains following its Q1 results, which beat analysts' estimates. Valmont' Q1 revenue rose +26.6% Y/Y to $980.8M and the company also raised its FY 2022 non-GAAP EPS guidance.

ABM Industries (ABM) +8.60%. The New York-based facility solutions provider rose throughout the week, barring April 21 (-0.04%). The Wall Street Analysts' Rating is Buy with an Average Price Target $59. YTD, the stock has risen +31.06%.

AAON (AAON) +7.98%. The Tulsa, Okla.-based company, which provides air conditioning and heating equipment, said its Founder, Executive Chairman and Director Norman Asbjornson will retire from his role as executive chairman, effective May 12. The Quant Rating on the stock is Sell. YTD, the stock has declined -29.33%.

This week's top five decliners among industrial stocks (market cap of over $2B) all lost more than -13% each. YTD, all the stocks are in the red, barring AVAV which is +39.90%.

AeroVironment (NASDAQ:AVAV) -20.52%. The drone maker's stock lost throughout the week. Baird downgraded the company's shares to Neutral from Outperform with a $95 price target, saying the stock is "ahead of itself" after a ~60% surge during the past two months "reflects a lot of future Switchblade orders which will take time to materialize." At the close of the week, it was reported that AeroVironment is in talks with Ukraine's government over the possibility of additional sales of its Switchblade dive-bombing drones.

Kanzhun (BZ) -16.55% stock has seen some volatility in the past couple of months. The Chinese online recruitment platform was the #1 industrial gainer (+51.77%) for the week ending March 18 but just week before that it was the worst performing stock (-26.62%) for the week ending March 11 and declining two weeks in a row. The Wall Street Analysts' Rating is Buy with Average Price Target of $37.91. YTD, the stock has fallen -43.18%.

The chart below shows 6-month total return performance of the top five decliners and XLI:

Bloom Energy (BE) -15.10%. Shares of the San Jose, Calif.-based company, which makes solid-oxide fuel cell systems, lost the most on April 21 (-11.84%). The Quant Rating on the stock is Hold. SA contributor Simple Investing earlier in April wrote, Bloom Energy: Blooming Into A Long Term Outperformer.

Plug Power (PLUG) -14.47% too lost the most on April 21 (-14.19%). However, the company gained earlier in the week on April 19 (+9.78%) after unveiling an agreement with Walmart for an option to deliver up to 20 tons/day of liquid green hydrogen. YTD, the stock has fallen -21.93%.

Kratos Defense & Security Solutions (KTOS) -13.55%. The company — which also makes drones, among other things — wrapped up the top five decliners this week. The Wall Street Analysts' Rating is Buy with an Average Price Target of $23.5. YTD, the stock has declined -14.48%.

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