Enovix swaps loser tag for top industrial gainer, while shipping stocks see choppy waters

Aug. 27, 2022 12:35 PM ETEnovix Corporation (ENVX), ZIMSPY, XLI, BLDP, MMM, PLUG, SWK, MOG.A, SBLK, TFII, BZBy: Ravikash, SA News Editor9 Comments

Battery supply concept

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Wall Street saw stocks plummeting and Dow dropping more than 1,000 points while Nasdaq declined ~4% after Federal Reserve Chairman Jerome Powell's hawkish remarks at the Jackson Hole Economic Symposium, warning that the fight against inflation could lead to "some pain" for the economy.

While Enovix was the top gainer on positive comments from analysts, shipping stocks led the losers' list.

For the week ending Aug. 26, the S&P 500 was in the red for the second week in a row (-3.99%) with 10 out of the 11 sectors in the in the red. YTD, SPY is -14.66%. The Industrial Select Sector SPDR (XLI) also declined for the second week straight (-3.36%). YTD, XLI is -9.72%.

The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +5% each this week. However, YTD, only one out of these five stocks is in the green.

Enovix (NASDAQ:ENVX) +18.10%. The Fremont, Calif.-based lithium-ion battery maker was back as the top gainer after two weeks, shrugging off the loser tag from last week. The week saw Loop Capital doubled its price target on the company to $100 from $50 while keeping a Buy rating on the shares; and Cowen setting a new price target to $36 from $19 and maintaining an Outperform rating. Loop analyst Analyst Ananda Baruah sees growth potential and said that Enovix is entering production and have access to seemingly "unlimited" demand. Meanwhile Cowen analysts noted that ENVX shares have been rising higher after its earnings wherein Enovix said its Automotive opportunity looms large as the company was just getting started with early promising fast charge data and improved volumetric energy density and safety via BreakFlow.

The average Wall Street Analysts' Rating on ENVX is Strong Buy, wherein 5 out of 6 analysts tag the stock as a Strong Buy. The rating is in contrast to the SA Quant Rating of Hold, which takes into account factors such as Valuation and Profitability, among others things. YTD, the stock has declined -17.49%.

Kanzhun (BZ) +15.11%. The Chinese online recruitment platform was back among the gainers after being the worst decliner three weeks ago. The company also reported its Q2 results which saw revenue beat estimates. However, the stock has continued its volatility, it was also among top decliners in a week in July. BZ gained well in June (+30%) and was among the top five (in this segment). But, the stock was among the worst five decliners in the first week of May, having made to the top in the last week of April. Similar trends were seen in March.

YTD, BZ has declined -30.53%. The SA Quant Rating on the stock is Hold, with Profitability having a factor grade of D+ while Growth having a factor grade of C+. The average Wall Street Analysts' Rating differs and tags BZ as Strong Buy, wherein 8 out of 11 analysts give the stock a Strong Buy rating.

The chart below shows YTD price-return performance of the top five gainers and SP500:

Plug Power (PLUG) +7.90%. The Latham, New York-based company's stock has also seen some sizeable gains (and at times loses) in these past two months. The stock gained this week driven by a green hydrogen supply deal with Amazon. PLUG was among top gainers (in this segment) in the first week of August, and saw ups and downs in July and, some gains in June.

The SA Quant Rating on the stock is Hold, with Profitability and Valuation both having a factor grade of F. The rating is in contrast to the average Wall Street Analysts' Rating of Buy, wherein 14 out of 28 analysts give the stock a Strong Buy rating. YTD, PLUG has risen +2.52%, the only stock among this week's gainers which is in the green for this period.

Ballard Power Systems (BLDP) +6.11%. The Canadian fuel cell systems developer leapfrogged from the decliners' list it found itself in last week to take a spot among the gainers this week. The stock shot up the most on Aug. 24 (+8.81%). However, YD, BLDP has fallen -36.39%, the most among this week's gainers. The average Wall Street Analysts' Rating and SA Quant Rating both have a Hold rating on the stock.

TFI International (TFII) +5.19%. The company is selling its Contract Freighters non-dedicated U.S. dry van and temperature-controlled truckload business and CFI Logistica operations in Mexico to Heartland Express for an enterprise value of $525M. YTD, the stock has fallen -4.26%. The SA Quant Rating on TFII is Strong Buy, while the average Wall Street Analysts' Rating is Buy.

This week's top five decliners among industrial stocks (market cap of over $2B) all lost more than -9% each. YTD, all these five stocks are in the red.

ZIM Integrated Shipping Services (NYSE:ZIM) -16.43%. Certain shipping stocks fell at the end of the week after reports that shipping carriers continued to cite congestion at U.S. and Canadian ports the reason for canceling sailings in September. The stock fell the most on Aug. 26 (-14.94%). ZIM also announced updates on withholding tax procedures on September 2022 cash dividend. Earlier in the week, ZIM was downgraded at Citi to Neutral/High Risk with end of freight rate upcycle.

ZIM was among the worst five decliners in June. YTD, ZIM has sunk -30.26%. The SA Quant Rating on the stock is Hold, with Profitability having a factor grade of A+ and Growth with a factor grade of F. The average Wall Street Analysts' Rating concurs and tags the stock as Hold, wherein 5 out of 7 analysts see it as Hold.

Star Bulk Carriers (SBLK) -13.85%. The Greece-based shipping company's stock slumped the most on Aug. 24 (-8.21%). Star Bulk — which was among 2021 top five industrial stocks (in this segment) — has shed -5.03% YTD. The SA Quant Rating on SBLK is Hold, with Profitability and Valuation both having a factor grade of A+. The rating differs with the average Wall Street Analysts' Rating of Buy, wherein 4 out of 6 analysts tag it as Strong Buy.

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

3M (MMM) -11.06%. The stock slumped the most on Aug. 26 (-9.58%) after the company lost its effort to block more than 230K lawsuits accusing it of injuring U.S. soldiers. According to a report last week, 3M could face more than $100B in losses and even bankruptcy due to lawsuits. The SA Quant Rating on the shares is Hold, with Profitability having a factor grade of A+ and Growth with a score of F. The average Wall Street Analysts' Rating concurs with a Hold rating, wherein 13 out of 21 analysts consider the stock as a Hold. YTD, 3M has shed -27.30%.

Moog (MOG.A) -9.15%. The aero-defense company's stock fell the most on Aug. 26 (-8.84%). YTD, the stock has declined -3.40%. The average Wall Street Analysts' Rating for MOG.A is Buy, while the SA Quant Rating is Strong Buy.

Stanley Black & Decker (SWK) -9.01%. The New Britain, Conn.-based company fell to hit a 2-1/2-year low. The stock was back among the worst five decliners after about a month. YTD, SWK has shed -52.25%, the most among this week's worst performers. The SA Quant Rating on the stock is Sell, which is in contrast to the average Wall Street Analysts' Rating differs of Hold.

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