The SPDR Select Industrial Sector (XLI) ended the week ending January 13 in green (+1.54%). XLI was among nine of 11 sectors in the S&P 500 to end the week with gains.
Air taxi maker Joby led industrial winners (in our segment) and airline and energy-related stocks rounded out the top five. However, defense stocks took a beating and formed the majority of the worst performing industrial stocks (in our segment) during the week.
Meanwhile, the SPDR S&P 500 Trust ETF (SPY) rose +2.69% for the week with a better show on Thursday and Friday amid the Consumer Price Index report that arrived as expected.
The top five gainers in the industrial sector (stocks with a market capitalization of more than $2 billion) earned more than +20% each this week.
Joby Aviation (NYSE:WORK) +24.93%. The Santa Cruz, California-based maker of electric air taxis saw its shares rise over the week, with the most on Thursday (+8.56%). JOBY has an SA Quant Rating, which takes into account factors such as Momentum, Profitability and Valuation, among others, of Hold.
The stock has a factor rating of D for Profitability and B- for Growth. The average Wall Street analyst rating differs with a Buy rating, with 4 viewing it as Hold and 1 viewing it as Buy and Strong Buy, respectively.
Power plug (plug) +22.97%. The Latham, New York-based company extended its earnings for the week on Thursday after announcing the completion of its new 407,000-square-foot fuel cell manufacturing facility in New York.
The SA Quant rating on PLUG is Sell, with a score of D- for Momentum and C+ for Valuation. The Wall Street analysts’ average rating differs entirely from the Buy rating, in which 16 of 31 analysts view the stock as a Strong Buy.
The chart below shows the past 6-month price-yield performance of the top five gainers and SP500:
United Airlines (UAL) +22.28%. An outage to a key computer system operated by the FAA grounded flights in the US on Wednesday, but shares of some airlines soared during the week. While Delta Air Lines shares fell after its first-quarter results, UAL is scheduled to report earnings next Tuesday. However, Delta CEO Ed Bastian was optimistic about demand in the field of air travel.
The SA Quant rating on UAL is a Strong Buy, scoring A on both profitability and momentum. Wall Street analysts’ average rating on the stock is a Buy, with 7 of 21 analysts labeling the stock a Strong Buy.
Bloom Energy (BE) +21.76%. Shares of the San Jose, California-based company were the biggest gainers on Tuesday (+10.61%) after Morgan Stanley upgraded the shares to Overweight from Equal Weight as the Inflation Reduction Act and the expected relaxation of supply chains in battery storage offer one way. to profitability in 2023.
BE has a SA Quant Rating of Hold, which is in contrast to the Wall Street Analysts’ Rating of Buy average.
American Airlines (AAL) +20.03%. Shares of the company rose on Thursday after significantly raising fourth-quarter expectations in an investor update. Chief Executive Officer Robert Isom attributed the company’s better-than-expected results to “strong demand” among travelers. The SA Quant rating on the stock is a Strong Buy, while Wall Street analysts’ average rating on AAL is Hold.
This week’s top five decliners among industrial stocks (market capitalization over $2 billion) lost more than -3% every.
Northrop Grumman (New York Stock Exchange: NOC) -11.51%. The Falls Church, Virginia-based air defense company was among a number of defense stocks that plunged Friday after Goldman Sachs downgraded its shares. NOC was cut to Sell from Neutral at its current valuation and the possibility of pressures on the US defense budget.
The SA Quant Rating on NOC Hold, with factor rating A for Profitability but F for Growth. The average Wall Street analyst rating differs from the Buy rating, in which 8 out of 20 analysts view the stock as a Strong Buy.
Boaz Allen Hamilton (BAH) -7.68%. Shares of the McLean, Virginia-based consultancy fell the most to start the week on Monday (-6.05%). The SA Quant Rating on BAH is Hold, with a score of C+ for Momentum and D for Valuation. The rating contrasts with Wall Street analysts’ Average Buy Rating, in which 5 out of 13 analysts label the stock a Strong Buy.
The chart below shows the past 6-month price-yield performance of the five worst decliners and XLI:
Lockheed Martin (LMT) -4.95%. Goldman Sachs downgraded the defense contractor’s shares to Sell from Neutral due to the company’s limited ability to repurchase shares. The SA Quant rating on LMT is Hold, scoring A+ for Profitability but F for Growth. Wall Street analysts’ average rating is in line with a self-hold rating, with 11 of 22 analysts viewing the stock as such.
L3Harris Technologies (LHX) -4.37%. The Melbourne, Florida-based air defense company has an SA Quant rating of Hold, which contrasts with the average Buy rating of Wall Street analysts.
Environmental GFL (GFL) -3.96%. Shares of the Canadian waste management company have an SA Quant of Hold rating, which differs from Wall Street analysts’ average Buy rating.