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The week, ending Feb. 10, saw the Industrial Select Sector SPDR (XLI) finished the week in the red (-0.69%). XLI was among the 10, out of the 11 S&P 500 sectors, which closed the week with losses ending a good run a seen in the last few weeks. ArcBest was the top industrial gainer (in our segment) but peer XPO was not so lucky and was dragged down to the worst performing stock of the week following its earnings results.
The SPDR S&P 500 Trust ETF (SPY) fell -1.05% for the week, as market spirits were dampened surrounding Federal Reserve’s future moves on rate hikes. While Fed chair Jerome Powell somewhat calmed the markets on Tuesday noting that “the disinflationary process” had begun but would take time, later in the week certain Fed speakers warned that more rate hikes would be needed to fight inflation.
The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +6% each this week.
ArcBest (NASDAQ:ARCB) +16.26%. ArcBest’s stock soared on Tuesday (+17.38%) amid M&A speculation after TFI International’s (TFII) CEO entertained some M&A possibilities, talking particularly positively about the Fort Smith, Ark.-based freight transportation provider.
ARCB has an SA Quant Rating — which takes into account factors such as Momentum, Profitability, and Valuation among others — of Hold. The stock had a factor grade of B+ for Profitability but F for Growth. The average Wall Street Analysts’ Rating differs with a Buy rating, wherein 4 out of 10 analysts see the stock as Strong Buy.
Maximus (MMS) +12.14. Shares of the business process services provider rose on Thursday (+9.30%) after Q1 results beat analysts estimates. The SA Quant Rating on MMS is Hold, with a score of A- for Momentum but D for Valuation. The rating is in contrast to the average Wall Street Analysts’ Rating of Buy, wherein 2 out of 2 analysts view the stock the same.
nVent Electric (NVT) +10.73%. U.K.’s nVent stock too benefited from a healthy earnings report on Tuesday (+7.42%) which saw non-GAAP EPS and revenue, both, surpass analysts estimates. The SA Quant Rating on NVT is also Hold, with a score of D+ for Growth and D- for Valuation The average Wall Street Analysts’ Rating differs with a Buy rating, wherein 2 out of 6 analysts tag the stock as such.
International Seaways (INSW) +7.81%. The New-York based shipping company has an average Wall Street Analysts’ Rating of Strong Buy, which is in contrast to the SA Quant Rating of Hold.
Moog (MOG.A) +6.83%. Shares of the flight controls system maker rose throughout the week. The SA Quant Rating on MOG.A and the average Wall Street Analysts’ Rating, both, have a Hold rating of their own.
This week’s top five decliners among industrial stocks (market cap of over $2B) all lost more than -10% each.
XPO (NYSE:XPO) -18.64%. The logistics company’s shares sunk on Thursday (-13.96%) the most after Q4 results on Wednesday post market. The Greenwich, Conn.-based company’s shares continued to take a hit on Friday after Wells Fargo and Jefferies cut their ratings on XPO with concerns on pricing and challenges in Q1 ahead.
The SA Quant Rating on XPO is Hold with B+ score for Profitability but F for Growth. The average Wall Street Analysts’ Rating differs with a Buy, wherein 9 out of 21 analysts see the stock as Strong Buy.
Frontier Group (ULCC) -15.70%. The airline’s stock slumped on Thursday (-14.85%) after Q4 revenue of $906M fell short of expectations. The carrier also reported 8.67B available seat miles, below the 8.81B estimate.
The SA Quant Rating on ULCC is Hold, with a score of B- for Momentum and B for Valuation. The rating is in contrast to the average Wall Street Analysts’ Rating of Buy, wherein 7 out of 12 analysts tag the stock as Strong Buy.
Oshkosh (OSK) -14.55%. The specialty vehicles maker lost a $8.6B U.S. Army contract, which went to AM General, that led to the stock tumbling -10.81% on Friday.
SA Quant Rating on OSK is Hold, with a score of C for Profitability and B+ for Growth. The average Wall Street Analysts’ Rating differs with a Buy rating, wherein 4 out of 19 analysts view the stock as Strong Buy.
Plug Power (PLUG) -11.62%. The Latham, N.Y.-based company’ shares fell throughout the week, barring Friday when they were flat, and the most on Monday (-5.18%). The SA Quant Rating on PLUG is Hold, while the average Wall Street Analysts’ Rating is Buy.
Forward Air (FWRD) -10.86%. The freight and logistics company’s Q4 results failed to surpass analysts estimates which saw the stock plunging -14.33% on Thursday. The SA Quant Rating on FWRD is Hold, which differs with the average Wall Street Analysts’ rating of Buy.
