Earnings play kingmaker as Atkore races to top industrial gainer, Bloom Energy picks #1 loser tag

May 07, 2022 12:35 PM ETAtkore Inc. (ATKR), BESPY, XLI, ZIM, LPX, WIRE, WCC, SPR, BZ, SAVE, ROKBy: Ravikash, SA News Editor1 Comment

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It was a busy earnings week that held the fate of majority of stocks in our list of top gainers and losers for the week ending May 6. While Atkore rose to the top after boosting its full year outlook, even record Q1 revenue could not help Bloom Energy avoid landing as the worst decliner.

In its biggest one-day loss in two years, the benchmark S&P 500 Index plunged 3.6% on May 5, the Dow lost 1,063 points and the tech-heavy Nasdaq closed the session down 5%. For the week ending May 6, The SPDR S&P 500 Trust ETF (SPY) -0.16% has been in the red for five weeks a row now. YTD, the ETF is -13.39%. The Industrial Select Sector SPDR (XLI) +0.40% was in the green after being in the red for five weeks straight. YTD, XLI -9.72%.

The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +13% each.

Atkore (NYSE:ATKR) +20.01%. The Harvey, Ill.-based electrical products maker saw its stock rise +12.95% on May 3 after the company raised its FY22 adjusted EPS outlook. Q1 revenue and adjusted EPS both grew Y/Y and surpassed analysts' estimates. The Wall Street Analysts' Rating is Buy with an Average Price Target of $141.25.

Zim Integrated Shipping Services (ZIM) +18.93%. The Israeli shipping company's stock grew consistently throughout the week. Zim sailed from the decliners' list it found itself in about a month ago to dock in the gainers' list. The stock had a rough week in March as well but had done well in January. YTD, ZIM has grown +12.40%, the most among this week's top five, and a rare feat considering how markets have been performing since the past few months.

The chart below shows 6-month price-return performance of the top five gainers and SP500TR:

Louisiana-Pacific (LPX) +14.83%. Nashville, Tenn.-based building products maker reported Q1 results on May 3 beating analysts' estimates. LPX's revenue grew +31.0% Y/Y to $1.34B, which certainly impressed investors as the stock grew more than 8% on consecutive days (May 3 +8.92%; May 4 +8.27%).

Encore Wire (WIRE) +14.01% The Texas-based wire and cable maker's stock rose the most on May 4 (+8.61%). At the end of the week (May 6), the company also declared $0.02/share quarterly dividend, in line with previous. Encore had cracked the top five gainers' list over two months ago. YTD, the stock is -10.13%, the most among this week's top five.

Wesco International (WCC) +13.78%. The Pittsburgh, Pa.-based supply chain solution provider's stock rose the most on May 5 (+5.72%) after its Q1 adjusted EPS rose +154% Y/Y to $3.63, beating analysts' expectations. Wesco even raised its FY22 adjusted EPS outlook. YTD, the stock has grown +6.58%.

This week's top five decliners among industrial stocks (market cap of over $2B) all lost more than -15% each. YTD, all these five stocks are in the red.

Bloom Energy (NYSE:BE) -18.48% reported a larger than expected Q1 adjusted loss and revenues that rose to a Q1 record but still came in below estimates. The San Jose, Calif.-based company saw double-digit percentage slide (-20.24%) on May 6, following its earnings release on Thursday ago post-market. The power generation platform provider was among the worst five losers' two weeks ago as well. YTD, the stock is -31.01%.

Spirit AeroSystems (SPR) -16.51% shares fell for three consecutive days starting May 4 (-7.22%) after the company's Q1 report. Even though the results beat estimates, the stock saw Bernstein and Susquehanna cut their price targets on the shares. Meanwhile, SA columnist Dhierin Bechai wrote that, "The results from Spirit AeroSystems certainly were not bad, but there are significant pressures." YTD, stock is -18.54%.

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

Kanzhun (BZ) -16.45%. The stock continued its volatility as this week it made its way down from the #1 gainer spot from last week. The Chinese online recruitment platform was among the worst five decliners two weeks ago. March also saw the volatile nature of the stock when it rose to the top spot but was among the worst 5 for two weeks straight. This week the stock lost most on May 6 (-8.26%). YTD, -43.64%, the most among this week's decliners.

Spirit Airlines (SAVE) -16.39% stock nosedived on May 2 (-9.36%) after rejecting JetBlue's upgraded offer to takeover the low-cost carrier as Spirit's board still preferred the offer given by Frontier Group. Spirit's stock also lost following its Q1 results. Deutsche Bank also cut its price target on Spirit from $38 to $27. While Q1 revenue rose +109.7% Y/Y and beat estimates, non-GAAP numbers missed estimates. YTD, stock has fallen -9.66%.

Rockwell Automation (ROK) -15.10% stock tumbled the most on May 3 (-14.52%) after the company's FQ2 adjusted earnings missed expectations by a wide mark and it cut full-year guidance, citing higher input costs and higher investment spending. YTD, the Milwaukee, Wis.-based company's stock has fallen -38.51%.

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