Beijing-based Kanzhun took the spot again among industrial gainers this week, while shipping stock led the decliners list.
For the week ending June 10, The SPDR S&P 500 Trust ETF (SPY) was back in red (-5.05%) after two rare weeks of gains, which had followed a 7-week losing streak. YTD, the ETF is -17.93%. The Industrial Select Sector SPDR (XLI) also lost (-4.93%), after seeing two weeks of gain. YTD, XLI is -14.15%.
The top five gainers in the industrial sector (stocks with a market cap of over $2B) had modest gains and none touched double digits this week. Moreover, YTD, three out of five of these stocks are in the red.
Kanzhun (NASDAQ:BZ) +8.85% gained at the start of the week (June 6 +19.93%) following a report that Chinese regulators were preparing to allow app from the company and Full Truck Alliance back on the app stores. But the stock pared of gains after a couple of days shedding -16.44% on June 9. Shares of the Chinese online recruitment platform have continued to show volatility. It was the top gainer last week but was among the worst five decliners over a month ago, having made to the top just week prior to it. Similar trends were seen in March. YTD, the stock has fallen -32.65%.
Spirit Airlines (SAVE) +7.43% shares have been swaying since reports of merger and acquisition bids started. Spirit postponed its June 10 shareholder meeting for its planned sale to Frontier (ULCC) to allow more discussions after JetBlue (JBLU) submitted an improved offer earlier in the week. JPMorgan upgraded Spirit to an Overweight rating and thinks that there is a growing probability for a merger with JetBlue. YTD, Spirit is up +1.97%.
The chart below shows 6-month price-return performance of the top five gainers and SP500TR:
BWX Technologies (BWXT) +3.59%. The Lynchburg, Va.-based nuclear components maker entered the top gainers in this segment for the first time this year. The stock gained June 9 on the back a U.S. Department of Defense contract to build the first advanced nuclear microreactor in the U.S. YTD, BWXT has risen +10.90%, the most among this week's top five and the only other in green with Spirit. The SA Quant Rating on the stock is Hold, which takes into account factors such as growth and profitability, among others. Meanwhile, SA contributor Daniel Jones wrote a couple of weeks ago that even though BWX is still a healthy business, much of the value that made the firm attractive has now already been captured.
MasTec (MTZ) Arconic (ARNC) both gained +1.59% each, completing the top five of the week. Energy infrastructure provider MasTec gained after Biden administration waived off solar import tariffs for two years. As per Goldman Sachs, the move is positive for MasTec, which is one of the largest construction companies around U.S. solar. YTD, MTZ has declined -10.66%. The Wall Street Analysts' Rating is a Strong Buy with an Average Price Target of $105.41. This is in contrast to the SA Quant Rating which has a Hold rating on the stock, which factors in the company's profitability, and valuation, among other things.
Arconic (ARNC) gained at the start of the week (June 6 +7.68%) but fell from mid-week over concerns that aluminum prices will further fall by December as demand slows and supplies rise in warehouses. YTD, ARNC is -12.69%, but similar to MasTec the Wall Street Analysts' Rating is a Buy with an Average Price Target of $38.6, which is in contrast to the SA Quant Rating of Hold.
This week's top five decliners among industrial stocks (market cap of over $2B) all lost more than -14% each. YTD, only two out of five of these stocks are in the green.
ZIM Integrated Shipping Services (NYSE:ZIM) -23%. Shipping stocks led by ZIM fell after J.P. Morgan analysts said they expect a slowdown in freight traffic will hurt the sector and singled out the Israeli company's stock that will underperform. YTD, the stock has fallen -11.43%, but the Wall Street Analysts' Rating is Buy with an Average Price Target of $81.08, which is in contrast to the SA Quant Rating of Hold.
Star Bulk Carriers (SBLK) -17.07% too fell with its peers in the week but the Greek shipping company — which was among 2021 top five industrial stocks (in this segment) — is still a healthy +18.92% YTD unlike its peers and the broader market sentiment. The SA Quant Rating is a Strong Buy. Check out this article: Top 4 High-Yield Dividend Monsters.
The chart below shows 6-month price-return performance of the worst five decliners and XLI:
Joby Aviation (JOBY) -16.05%. The air taxi company's stock was back among the worst five decliners after over two months. The Santa Cruz, Calif.-based company, which is set to join the Russell 3000 index later this month, had cleared a regulatory hurdle for its operations in last week of May following which its shares got a boost. After this certain officers of the company including Head of Air Operations and People Bonny Simi, and Head of Government Affairs Bowles Gregory, had sold a certain amount of shares. Meanwhile, CEO JoeBen Bevirt had bought some shares. YTD, Joby has fallen -31.92%. The SA Quant Rating on the stock is Hold.
ABM Industries (ABM) -15.40%. The New York-based facility solutions provider saw its stock fall -11.72% June 9 despite its Q2 results beating analysts' estimates. However, ABM is the only company, along with SBLK, in this week's decliners which is in the green YTD +2.77%. The SA Quant Rating is Hold.
Advanced Drainage Systems (WMS) -14.92%. The Hilliard, Ohio-based company's stock fell throughout the week. YTD, the stock is -29.15%, the most among this week's five decliners. The Wall Street Analysts' Rating is Buy, in contrast with the SA Quant Rating of Hold.