Earnings make Ritchie Bros. top industrial gainer, while Kornit dives to pick #1 loser tag

May 14, 2022 12:35 PM ETRitchie Bros. Auctioneers Incorporated (RBA), KRNT, RBA:CASP500, SPY, XLI, TREX, R, ENR, VRRM, PLUG, CAR, BA, BLDP, BLDP:CABy: Ravikash, SA News Editor

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With earnings being the major theme again this week, Ritchie Bros. led the gainers, while Kornit's stock lost over 30% of its worth.

Despite gains early on May 13 trading, the S&P 500 (SP500) remains close to bear market territory for 2022. For the week ending May 13, The SPDR S&P 500 Trust ETF (SPY) -2.34% has been in the red for six weeks a row now. YTD, the ETF is -15.42%. The Industrial Select Sector SPDR (XLI) -2.53% was in the red after a rare week in green last week, which had followed five weeks of decline. YTD, XLI -12.01%.

The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +10% each.

Ritchie Bros. Auctioneers (NYSE:RBA) +18.23%. The Canadian industrial equipment seller saw its stock rise the most on May 10 (+11.98%) a day after its Q1 earnings beat analysts' estimates. The company's revenue also grew +18.8% Y/Y. YTD, the stock has risen +1.06%.

Trex (TREX) +13.21%. Winchester, Va.-based decking products maker reported double-digit volume growth "from "strong secular trends" on May 9. Trex's Q1 GAAP EPS and revenue beat estimates and the company reaffirmed its FY22 outlook. YTD, the stock has lost more than half its value (-53.49%). The Wall Street Analysts' Rating is Buy with Average Price Target $76.82.

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

Ryder System (R) +12.55% soared on May 13 (+17.03%) as a filing reflected a takeover bid for the Miami-based logistics solutions provider by a shareholder, HG Vora Capital Management, for a purchase price of ~$4.4B. YTD, the shares have risen +1.48%, the only other stock in the top five besides Ritchie Bros. to be in the green YTD.

Energizer (ENR) +10.97% Q1 non-GAAP EPS and revenue beat estimates making the stock soar +11.81% on May 9. The St. Louis-based battery maker credited a 5% increase in battery and auto care prices pivotal for the positive results. YTD, the stock has declined -17.03%.

Verra Mobility (VRRM) +10.30% wrapped up the top five, with its stock rising the most on May 10 (+13.15%) a day after the Mesa, Ariz.-based company said its Q1 revenue grew +89.6% Y/Y. The Wall Street Analysts' Rating is Buy with an Average Price Target of $19.57. YTD, the stock is -3.56%.

This week's top five decliners among industrial stocks (market cap of over $2B) all lost more than -12% each. YTD, all these five stocks are in the red.

Kornit Digital (NASDAQ:KRNT) -31.64%. The Israeli digital printing solutions provider's stock lost a third of its value (-33.29%) on May 11 despite reporting better than expected Q1 adjusted earnings and revenues but swinging to a GAAP net loss and guiding Q2 revenues below consensus. The Wall Street Analysts' Rating is however is Strong Buy with an Average Price Target of $89. YTD, the stock has fallen -71.18%.

Plug Power (PLUG) -22.57%. The Latham, New York-based company found itself back among the decliners after three weeks. Plug shares extended two-year lows after reporting a larger than expected Q1 GAAP loss and even as revenues nearly doubled Y/Y but missed estimates. YTD, PLUG has declined -46.76%.

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

Avis Budget (CAR) -19.83%. 2021's best industrial stock +455.95% (in this segment) had seen better weeks in and March and April. The car/truck rental company stock fell throughout the week, the most on May 9 (-11.18%) despite a report by JP Morgan that the first signs of stabilization in used car prices has promising implications for rental companies and automakers themselves. YTD, the stock is marginally down -1.08%.

Boeing (BA) -14.57% stock lost the most at the start of the week (May 9 -10.47%) after Air Lease executive chairman Steven Udvar-Hazy said the future of the delayed 777X jetliner project could be at risk. Midweek, Boeing noted that the supply chain disruptions slowed production and deliveries of its 737 MAX plane in recent weeks, but it did not expect any change to its overall plan for the year. And at the end of the week, it was reported that the FAA informed the company that documents submitted for the resumption of 787 Dreamliner deliveries were incomplete. YTD, the stock has lost over a third of its value (-36.82%).

Ballard Power Systems (BLDP) -12.26%. The Canadian fuel cell systems developer was back in the losers' list after a month, this time driven by its Q1 results, which missed estimates. Q1 net loss widened Y/Y and while revenues grew 19% Y/Y to $21M, it still fell short of analyst consensus estimates. SA contributor Henrik Alex wrote, Ballard Power - No Light At The End Of The Tunnel. YTD, BLDP has declined -45.30%.

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