The Industrial Select Sector SPDR (XLI) finished the week ending Nov. 11 in the green (+4.69%) for the fourth week in a row, with all 11 S&P 500 (SP500) sectors gaining as well this week. Earnings played kingmaker for GXO Logistics which lead industrial gainers (in this segment), while M&A news soured Chart Industries stock this week.
The SPDR S&P 500 Trust ETF (SPY) rallied back to gains, specially on Thursday as stocks gained amid data that showed core and headline consumer inflation were softer than expected in October. SPY ended the week (+5.89%) with its best weekly performance since late June. However, YTD, SPY is -16.10%, meanwhile XLI is -5.94%.
The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +23% each this week. However, YTD, only one out of these five stocks is in the green.
GXO Logistics (NYSE:GXO) +28.14%. The Greenwich, Conn.-based company's stock gained throughout the week, which saw the company's Q3 results beat estimates and getting a bullish investor pitch from CNBC commentator Steve Weiss.
However, the stock has a much steeper hill to climb if has to make up losses it incurred, as YTD it has slumped -50.52%, the most among this week's top five gainers for this period. GXO was also the 4th worst performing stock (in this segment) in H1 (-52.21%).
The SA Quant Rating on GXO is Sell, which takes into account factors such as Momentum, Profitability, and Valuation among others. GXO has a factor grade of C+ for Profitability and C for Growth. The average Wall Street Analysts' Rating differs with a Buy rating, wherein 9 out of 15 analysts tag the stock as Strong Buy.
Enovix (ENVX) +26.72%. The stock gained the most on Nov. 7 (+10.34%) after the lithium ion battery maker appointed T.J. Rodgers as executive chairman. Rodgers addressed concerns regarding Enovix's guidance cut at last week's Q3 results, which saw the stock plummet -41.47% (Nov. 2).
ENVX was the top gainer in Q3 +110.26% (in this segment)but YTD, has fallen -50.11%. The SA Quant Rating on the shares is a Hold, with score of B+ for Momentum and C- for Valuation. The rating is in contrast to to the average Wall Street Analysts' Rating of Strong Buy, wherein 8 out of 10 analysts see the stock as such.
The chart below shows YTD price-return performance of the top five gainers and SP500:
SiteOne Landscape Supply (SITE) +25.06%. The stock rallied on Thursday, as did many others, and gained +15.13%. However, YTD, the Roswell, Ga.-based wholesale distributor of landscape supplies has seen its stock tumble -43.73% and has an SA Quant Rating of Sell, with a C score for Growth and C- for Momentum. The average Wall Street Analysts' Rating disagrees with a Buy rating, wherein 4 out of 10 analysts see the the stock as Strong Buy.
TransUnion (TRU) +24.46%. The Chicago-based risk and information solutions provider too surged on Nov. 10 (+14.39%) but the stock has much to do as YTD it is still down -45.17%. The SA Quant rating has a Sell rating for this stock as well, with Valuation carrying an F score and D- for Momentum. The average Wall Street Analysts' Rating thinks TRU is a Buy rating, with 9 out of 19 analysts tagging the the stock as Strong Buy.
Axon Enterprise (AXON) +23.06%. The Scottsdale, Ariz.-based TASER maker's stock shot up (Nov. 9 +14.56%) after Q3 results beat estimates. YTD, AXON has risen +16.52% and is the only stock among this week's top five to be in the green for this period. The average Wall Street Analysts' Rating on AXON is Buy, wherein 6 out of 12 analysts view the stock as Strong Buy. The SA Quant Rating differs with a Hold rating, with a score of D+ for Profitability and B+ for Growth.
This week's top five decliners among industrial stocks (market cap of over $2B) all lost more than -5% each. YTD, three out of these five stocks are in the red.
Chart Industries (NYSE:GTLS) -39.52%. The stock went crashing down on Wednesday (-35.56%) after the Ball Ground, Ga.-based company said it was acquiring gas handling products and services provider Howden for $4.4B.
YTD, the stock has shed -12.57% and has an SA Quant Rating on the shares is Hold, with a factor grade of C- for Momentum and C for Profitability. The rating in contrast to the average Wall Street Analysts' Rating of Strong Buy, wherein 14 out of 19 analysts tag the stock as such.
Gol Linhas Aéreas Inteligentes (GOL) -17.44%. The Brazilian low-cost airline stock has seen considerable volatility in the past few weeks. GOL was among the top five gainers last week but was among the worst five performers just a week before that. YTD, the stock has declined -46.75%, the most among this week's worst five, for this period.
The average Wall Street Analysts' Rating is Buy, with an Average Price Target of $5.20, a +61.49% Upside. The SA Quant Rating disagrees with a Hold rating, wherein Valuation has a factor grade of A- and Growth has a B score.
The chart below shows YTD price-return performance of the worst five decliners and XLI:
Ritchie Bros. Auctioneers (RBA) -12%. Another M&A announcement to which investors didn't warm up to was Ritchie Bros. plan to buy auto salvage company IAA in a $7.3B deal. Analysts were also not too happy, as the news saw BofA downgrade the stock to neutral from buy with a report titled, "Straight forward story thrown a massive curve ball." YTD, stock has fallen -10.41%.
The SA Quant Rating on RBA is Hold, with a score of A- for Profitability and D for Growth. The average Wall Street Analysts' Rating concurs with a Hold rating of its own, wherein 6 out of 10 analysts seeing the stock as such.
Huntington Ingalls Industries (HII) -6.71%. The defense stock slumped on Friday after Bank of America downgraded HII to Underperform, noting that the company's anticipated 3% annual shipbuilding growth was "underwhelming given the enormity of funding funneling into the U.S. Navy and fleet modernization."
The SA Quant Rating and the average Wall Street Analysts' Rating seem to agree with each tagging HII with a Hold rating of its own. YTD, the stock has gained +21.87%, the most among this week's worst five decliners in this period.
Dycom Industries (DY) -5.90%. The Florida-based construction and engineering services provider is the only stock besides HII among this week's losers' list to be in the green YTD, having gained +16.10%. The SA Quant Rating on DY is Strong Buy, with a factor grade of A for Momentum and C- for Valuation. The average Wall Street Analysts' Rating agrees here as well with a Strong Buy rating of its own, wherein 7 out of 7 analysts viewing the stock the same.