The Industrial Select Sector SPDR (XLI) was the among the only three gainers out of the 11 S&P 500 (SP500) sectors for the week ending Nov. 4 (+0.48%). Kanzhun swung back into gains after diving ~24% last week, while earnings was the major theme among this week's worst five performers.
The SPDR S&P 500 Trust ETF (SPY) was back in the red (-3.26%) after two weeks of gains in a row, amid the U.S. Federal Reserve hiking its key policy rate by 75 basis points for a fourth straight time, as expected. However, Chairman Jerome Powell said that moderating the pace of increases may come at the next meeting or the one after that. YTD, SPY has fallen -20.76%, meanwhile XLI is -10.15%.
The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +11% each this week. However, YTD, only one out of these five stocks is in the green.
Kanzhun (NASDAQ:BZ) +30.35%. The Chinese online recruitment platform's stock continued its trend of volatility as it leapfrogged from the decliners list to land the top spot among this week's gainers. The stock was among the top five gainers (in this segment) in June (+30%) but was among the worst five performers in Q3 (-38.60%). YTD, BZ has shed -59.86%, the most among this week's top five for this period.
The SA Quant Rating on shares is Strong Sell , which takes into account factors such as Momentum, Profitability, and Valuation among others. BZ has a factor grade of D- for Valuation and D+ for Profitability. The rating is in stark contrast to the average Wall Street Analysts' Rating of Strong Buy, wherein 8 out of 12 analysts tag the stock as such.
Gol Linhas Aéreas Inteligentes (GOL) +18.54%. The Brazilian low-cost airline saw its October total supply (ASK) increase 46% Y/Y, as per preliminary air traffic figures. GOL's total demand (RPK) grew +40.9% Y/Y and the load factor was 81.4%. The stock, which also swapped places from being among the decliners last week to the gainers list, rose the most on Oct. 31 (+12.16%). The SA Quant Rating on the shares is Hold, with a C score for Momentum and B for Growth. The average Wall Street Analysts' Rating differs with a Buy rating, wherein 3 out of 10 analysts see the the stock as Strong Buy. YTD, stock has declined -35.51%.
The chart below shows YTD price-return performance of the top five gainers and SP500:
MasTec (MTZ) +12.94%. The Florida-based construction company gained following its earnings which beat analysts estimates and also raised its FY22 outlook. YTD, the shares are down -6.10%. The average Wall Street Analysts' Rating on MTZ is Strong Buy, wherein out of the 8 out of 12 analysts view the stock as such. The rating is in contrast to the SA Quant Rating of Hold, with Profitability and Valuation both possessing a factor grade of C.
EnPro Industries (NPO) +12.59%. The Charlotte, N.C.-based company's Q3 results (Nov. 1 +4.95%) beat estimates which gave boost to the stock later in the week as well. The SA Quant Rating on NPO is Hold, with a B score for Profitability and C+ for Growth. The average Wall Street Analysts' Rating differs with a Strong Buy rating, wherein 3 out of 3 analysts tag the stock the same. YTD, NPO has risen +9.82%, the only one among this week's top five gainer to be in the green for this period.
XPO Logistics (XPO) +11.68%. Company CEO Brad Jacobs said that Q3 results showed that the North American businesses are positioned for growth as standalone companies, as both LTL and truck brokerage outperformed on key metrics. The Greenwich, Conn.-based freight transport services provider. YTD, the stock has fallen -26.90%.
The average Wall Street Analysts' Rating on XPO is Strong Buy, wherein 13 out of 22 analysts see the stock as such. The rating is in contrast to the SA Quant Rating of Hold, with a score of A for Valuation and D- for Momentum.
This week's top five decliners among industrial stocks (market cap of over $2B) all lost more than -13% each. YTD, all these five stocks are in the red.
Resideo Technologies (NYSE:REZI) -32.38%. The building products maker saw its stock plummet (Nov. 2 -31.99%) after Q3 results missed estimates and the Texas-based company cut its FY22 revenue outlook to between $6.36B and $6.41B, compared to prior outlook of $6.45B to $6.65B. YTD, the shares have slumped -38.23%.
The SA Quant Rating on the shares is Hold, with a factor grade of B for Growth and C+ Profitability. The average Wall Street Analysts' Rating differs with Buy, wherein 4 out of 6 analysts see the stock as Hold, while 1 each as Buy and Strong Buy, respectively.
Advanced Drainage Systems (WMS) -29.94%. The Ohio-based company's lowered its fiscal 2023 outlook, while FQ2 results failed to surpass estimates, making the stock see red (Nov. 3 -25.13%). YTD, WMS has tumbled -38.88% and has an SA Quant Rating of Hold, with a B+ score for Momentum but F for Valuation. The average Wall Street Analysts' Rating does not agree and gives the stock a Buy rating, with 3 out of 6 analysts view the stock as Strong Buy.
The chart below shows YTD price-return performance of the worst five decliners and XLI:
Core & Main (CNM) -15.15%. The Saint Louis, Mo.-based drainage products maker's stock has fallen -34.11% YTD. The SA Quant Rating on the shares is Buy, with Profitability and Growth both carrying a score of C+. The average Wall Street Analysts' Rating agrees with a Buy rating of its own, wherein 2 out of 11 analysts tag the stock as Strong Buy.
Trex (TREX) -14.27%. The decking products maker was the among the worst five performing stocks in H1 -59.50% (in this segment). This week stock slumped after its Q3 revenue fell nearly -44% Y/Y and missed estimates.
The average Wall Street Analysts' Rating on TREX is Buy, with 7 out of 17 analysts rating the stock as Strong Buy. The rating is in total contrast to the SA Quant Rating of Sell, with a D+ factor grade for Valuation D- for Momentum. YTD, TREX has shed -68.67%, the most among this week's decliners' list for this period.
Regal Rexnord (RRX) -13.70%. The Beloit, Wis.-based company, which makes electric motors, saw its Q3 results beat estimates but the stock still declined. However, the end of the week the stock gained mildly (Nov. 4 +2.80%) after the company received an investment-grade rating from Moody's and Fitch.
YTD, the shares have fallen -32.14% and have an SA Quant Rating of Hold, with a factor grade of B for Growth and C+ for Profitability. The average Wall Street Analysts' Rating differs with a Strong Buy rating, with 6 out of 7 analysts viewing the stock as such.