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The industrial select sector (XLI) gained for the second week in a row, and for the week ended March 31, it rose (+4.41%). YTD XLI is up +3.02%. Enovix led the way winners, but this week’s list also includes aerospace manufacturers. Meanwhile, earnings affected some declines (in our segment).
The SPDR S&P 500 Trust ETF ( SPY ) also rallied (+3.45%) thanks, among other things, to a lack of fresh news related to the banking crisis and personal consumption data in February that could prompt the Federal Reserve to halt its rate hikes. YTD, SPY is +7.05%.
The five biggest gainers in the industrials sector (stocks with market caps over $2 billion) all gained more than +12% every this week. Since the beginning of the year, 3 of these 5 stocks are in the red.
Enovix (NASDAQ: ENVX) +32.65%. Shares of the Fremont, Calif.-based company rose on Wednesday (+21.44%) after it said Malaysia’s YBS International Berhad was likely to take a financial stake in its production line at Fab-2.
ENVX has an SA Quant Rating — which considers factors such as momentum, profitability and valuation, among other things — of Hold. The stock has a factor rating of D for profitability and C+ for growth. The rating contrasts with the average rating of a strong buy by Wall Street analysts, with 10 out of 12 analysts seeing the stock as such. Since the beginning of the year +19.86%.
FTAI Aviation (FTAI) +14.83%. The New York-based company, which makes and leases aviation products, posted its biggest stock jump this week on Wednesday (+8.76%). Since the beginning of the year, FTAI has grown +63.32%the most among this week’s five biggest gains for this period.
SA’s quantitative rating on FTAI is Buy with an A+ for momentum and a C+ for valuation. The average rating of Wall Street analysts has a Strong Buy rating, with 7 out of 10 analysts labeling the stock as such.
The chart below shows the year-to-date price and return performance of the top five winners and the SP500:
Limit Group (ULCC) +13.63%. Shares of Frontier rallied throughout the week despite one of the first signs Monday of a possible weakening in airline demand.
SA’s Quantitative Rating at ULCC is Hold with A for Growth and C- for Momentum. The average Wall Street analyst rating differs from Strong Buy, with 7 out of 12 analysts considering the stock a Strong Buy. YTD, -4.19%.
Ameresco (AMRC) +13.15%. The Framingham, Mass.-based provider of energy efficiency solutions also saw its stock rise all week. However, since the beginning of the year, shares have fallen -13.86%, the most among this week’s five biggest gains for this period. The SA Quant Rating on AMRC is Sell, which is in stark contrast to Wall Street analysts’ average Strong Buy rating.
Spirit AeroSystems (SPR) +12.59%. And the Wichita, Kan.-based company. it was green throughout the week, and mostly on Tuesday (+6.42%). Since the beginning of the year, the manufacturer of aerospace defense products has jumped +16.66%. SA’s quantitative rating for SPR is Hold, which differs from Wall Street analysts’ average Buy rating.
This week’s five biggest decliners among industrial stocks (market caps over $2 billion) all lost more than -1% each. Since the beginning of the year, 2 of these 5 stocks are in the red.
UniFirst (NYSE: UNF) -7.45%. The company’s shares fell on Wednesday (-10.42%) after mixed Q2 results. The specialty apparel maker also provided a revised outlook for fiscal 2023.
SA’s quantitative rating at UNF is Hold with a grade of C- for both profitability and growth. The average rating of Wall Street analysts agrees with their own Hold rating, with 2 out of 4 analysts seeing the stock as such.
Elbit Systems (ESLT) -3.51%. Shares of the Israeli air defense company fell the most this week on Tuesday (-3.84%) after fourth quarter results at a time when protests over judicial reforms are ongoing in the country. However, since the beginning of the year, the stock has risen +3.76%.
SA’s quantitative grade on the ESLT is Hold, with a grade of D- for Assessment and D+ for Swing. The average Wall Street analyst rating is Buy, with 1 out of 3 analysts seeing the stock as a Strong Buy, while the other 2 see it as a Hold.
The chart below shows year-to-date price and return performance for the five worst declines and the XLI:
SA’s quantitative rating at GNRC is Sell, with a grade of C for profitability and D- growth. The rating contrasts with Wall Street analysts’ average buy rating, with 8 out of 27 analysts marking the stock as a strong buy. YTD, +7.30%.
Kanzhun (BZ) -2.86%. The Beijing-based online job platform continued to show its volatility, as the stock slipped into losses this week after being among the gainers last week. The company’s stock had such highs and lows during 2022. Since the beginning of the year, BZ has -6.58%.
SA’s quantitative rating on BZ is Hold, while Wall Street’s average rating differs from Strong Buy.
Dycom Industries (DY) -1.41%. The Florida-based company rounded out the five worst companies of the week. However, since the beginning of the year, the stock is still in the green (+0.05%). SA’s quantitative rating on DY is Buy, while Wall Street analysts’ average rating is Strong Buy.