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The week saw reports of a drop in job openings for August but an unexpected decline in the jobless rate in September. The SPDR S&P 500 Trust ETF (SPY) snapped out of a three-week losing streak, managing to end the week in gains (+1.57%) with help from a two-day rally (Oct. 3 +2.64%) (Oct. 4 +3.10%). However, in the remaining three days, SPY saw red but 7 out of 11 sectors ended the week in the green. YTD, SPY is -23.62%.
For the week ending Oct. 7, car rental company Avis lead the industrial gainers (in this segment) while flying taxi maker Eve headed the decliners for the second week in a row. The Industrial Select Sector SPDR (XLI) was among the gainers and ended its 3-week run of losses this week (+2.80%). YTD, XLI is -19.52%.
The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +13% each this week. However, YTD, only one of these five stocks is in the green.
Avis Budget (NASDAQ:CAR) +18.30%. The Parsippany, N.J.-based car/truck rental company’s stock came in the top five gainers for the second week in a row. Avis was the top performing industrial stock of 2021 +455.95% (in this segment) but YTD, has shed -15.31%. The SA Quant Rating on the shares is Strong Buy, which takes into account factors such as Momentum, Profitability, and Valuation among others. CAR has an A- factor grade for Valuation and A score for Profitability. The average Wall Street Analysts’ Rating differs with a Hold rating, wherein 3 out of 5 analysts tag the stock as Hold.
The Brink’s Company (BCO) +15.69%. Richmond, Va.-based company, which provides cash/valuables security services, saw its stock rise the most this week on Oct. 4 (+9.05%), the day after acquiring NoteMachine for ~$179M to grow its ATM managed services business. Following the deal, SA contributor The Value Investor, said that leverage and earnings adjustments were a bit too high for its taste, making it a bit cautious about BCO despite a compelling headline earnings multiple.
YTD, BCO has declined -14.53% and has an SA Quant Rating of Hold, with Growth possessing a score of C- and Momentum with a factor grade of C. The average Wall Street Analysts’ Rating on the stock is Strong Buy rating, wherein out of the 2 analysts, one sees its as Buy and the other as a Strong Buy.
The chart below shows YTD price-return performance of the top five gainers and SP500:
Arconic (ARNC) +14.20%. The Pittsburgh, Pa.-based aluminum products maker leapfrogged from the decliners’ list, it found itself in three weeks ago after slashing its FY22 outlook, to be among the gainers this week. ARNC gained with the wider market on Oct. 3 (+9.15%) as well.
However, YTD, ARNC has fallen -41.05%, the most among this week’s top five gainers in this period. The SA Quant Rating on ARNC is Hold, with Growth carrying a C+ score and Profitability with a factor grade of C-. The rating is in contrast to the average Wall Street Analysts’ Rating of Buy, wherein 3 out of 5 analysts see it as Strong Buy.
Star Bulk Carriers (SBLK) +13.96%. The Greek shipping company’s stock rose throughout the week. SBLK — which was among 2021 top five industrial stocks (in this segment) by gaining +156.74% in 2021 — has shed -12.13% YTD. The average Wall Street Analysts’ Rating on the shares is Strong Buy, wherein 4 out of 6 analysts tag the stock as such. The SA Quant Rating differs and has a Hold rating, with a D+ score for Momentum and an A for Growth.
Fluor (FLR) +13.94%. The Texas-based engineering and construction solutions provider secured two contracts worth $2B in China earlier this week. The average Wall Street Analysts’ Rating is Hold with 8 out of 9 analysts see the stock as such. The SA Quant rating agrees with a Hold rating of its own, with a C- factor grade for Profitability and C for Valuation. YTD, the stock has risen +14.49%, being the only one among this week’s top five gainers to be in the green for this period.
This week’s top five decliners among industrial stocks (market cap of over $2B) all lost more than -7% each. YTD, all these five stocks are in the red.
Eve Holding (NYSE:EVEX) -17.32%. The Florida-based eVTOL (electric vertical takeoff and landing) aircraft maker stock fell the most on Oct. 3 (-14.61%). EVEX was among the top five gainers in Q3 (in this segment), but YTD, has declined -24.95%. The SA Quant Rating on the shares is a Hold, with Valuation and Profitability both possessing a factor grade of F. The average Wall Street Analysts’ Rating differs with a Buy rating, wherein out of 4 analysts, 2 tag the stock as a Strong Buy while the remaining two see it as Hold.
Generac (GNRC) -13.41%. The Waukesha, Wis.-based company, which sells power generation equipment, gained on Oct. 4 (+4.47%) following the acquisition of industrial internet of things (IoT) platform developer Blue Pillar. However, later in the week (Oct. 6), the stock fell -7.82% after Bank of America downgraded GNRC after channel checks with dealers of backup power generators suggested weaker backlogs, possibly indicating reduced demand.
The stock was back among the worst five performers after about three weeks. YTD, GNRC has slumped -56.17%, the most among this week’s top five decliners in this period. The SA Quant Rating on the stock is Sell, with a factor grade of D- for Momentum and C+ for Growth. The average Wall Street Analysts’ Rating differs completely with a Buy rating wherein 14 out of 21 analysts see the stock as Strong Buy.
The chart below shows YTD price-return performance of the worst five decliners and XLI:
Bloom Energy (BE) -10.31%. The stock was back among the top five decliners after two weeks. The California-based company — which provides power generation platform — saw its stock slump for three days straight (Oct. 5-7). YTD, BE has shed -18.24%. The SA Quant Rating on the shares is Hold, with a factor grade of D for both Profitability and Valuation. The rating is in contrast to the average Wall Street Analysts’ Rating of Buy, wherein 7 out of 20 analysts tag the stock as Strong Buy.
Joby Aviation (JOBY) -9.70%. The Santa Cruz, Calif.-based electric air taxi company was among the worst five performers for the second week in a row. JOBY gained on Oct. 4 (+7.23%) but fell for three days straight (Oct. 5-7), after announcing (Oct. 4 post market) a filing for a shelf registration to raise up to $1B. SA contributor Stone Fox Capital said that the flying taxi future appears bright and Joby has cash to produce aircraft and start operations, making the selloff after the filing as irrational.
YTD, JOBY has fallen -46.44%. The SA Quant Rating on the shares is Hold, with an A- score for Growth but a D+ for Momentum. The average Wall Street Analysts’ Rating differs with a Buy rating, wherein 4 out of 6 analysts see the stock as Hold.
Ameresco (AMRC) -7.18%. The Framingham, Mass.-based renewable energy solutions provider rounded up the worst five performers of the week but was among the top five gainers in Q3 (+44.93%). YTD, the stock has declined -24.23%, and the average Wall Street Analysts’ Rating is Strong Buy, wherein 10 out of 13 analysts see the stock as such. The rating is in contrast to the SA Quant Rating of Hold, with a factor grade of D for Profitability and a score of D- for Valuation.
