Stock Market

Earnings play kingmaker driving Atkore to top industrial gainer, Rocket lands loser spot


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The Industrial Select Sector SPDR (XLI) finished the week ending Nov. 18 in the red (-0.09%) after a four week gaining streak. Earnings was the driving factor too this week among the majority of the top five gainers (in this segment), while Rocket landed as the worst performer.

The SPDR S&P 500 Trust ETF (SPY) was back in the red (-0.62%) after last week’s rally as investors remained wary of hawkish comments from Federal Reserve speakers on rate hikes to tame inflation. Meanwhile, leading indicators dropped more than expected in October, suggesting that the U.S. economy “is possibly in a recession.” YTD, SPY is -16.62%, while XLI is -6.02%.

The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +6% each this week. However, YTD, only one out of these five stocks is in the green.

Atkore (NYSE:ATKR) +14.11%. The Harvey, Ill.-based electrical and construction products maker saw its stock soar on Friday after FQ4 results beat estimates, while revenue grew +11.5% Y/Y. YTD, shares have gained +4.33%, and ATKR is the only one among this week’s top five which in the green for this period.

The SA Quant Rating on ATKR is Buy, which takes into account factors such as Momentum, Profitability, and Valuation among others. The stock has a factor grade of A for Profitability and B- for Growth. The average Wall Street Analysts’ Rating agrees with a Buy rating of its own, wherein 2 out of 4 analysts see the stock as such.

Evoqua Water Technologies (AQUA) +7.67%. The Pittsburgh-based company’s stock shot up on Nov. 15 (+14.88%) after Q4 results surpassed analysts expectations and the company placed its fiscal 2023 revenue outlook above estimates. The SA Quant Rating on the shares is a Hold, with score of A- for Momentum and D for Valuation. The rating is in contrast to to the average Wall Street Analysts’ Rating of Buy, wherein 3 out of 11 analysts tag the stock as Strong Buy. YTD, AQUA has shed -6.89%.

The chart below shows YTD price-return performance of the top five gainers and SP500:

Copa (CPA) +7.19%. The Panama-based airline got a boost after Q3 earnings beat analysts expectations, but the revenue couldn’t push past estimates. YTD, the stock is down -1.88% and has an SA Quant Rating of Buy, with a A+ score for Growth and C+ for Momentum. The average Wall Street Analysts’ Rating concurs with a Buy rating, wherein 8 out of 16 analysts view the the stock as Strong Buy.

RXO (RXO) +6.98%. XPO Logistics (XPO) spun-off the trucking transportation unit, RXO, in a separately trading company recently. The average Wall Street Analysts’ Rating on RXO is Buy, with 1 analyst seeing the stock as Strong Buy while 2 tagging it as Hold.

Xometry (XMTR) +6.35%. The Derwood, Md.-based company — which provides a marketplace for manufacturing parts — was the second best performing stock in Q3 +67.87% (in this segment). The SA Quant Rating and the average Wall Street Analysts’ Rating both tag the stock as Buy. YTD, the shares have fallen -16.96%.

This week’s top five decliners among industrial stocks (market cap of over $2B) all lost more than -10% each. YTD, all these five stocks are in the red.

Rocket Lab USA (NASDAQ:RKLB) -18.29%. The stock pared off gains it made last week following its Q3 earnings. The California-based launch services provider was among the top five gainers three weeks ago, however YTD, it has fallen -62.54%, the most among this week’s worst five performers for this period.

The SA Quant Rating on the RKLB is Strong Sell, with a score of D- for Profitability and F for Growth. The rating is in stark contrast to the average Wall Street Analysts’ Rating of Buy, wherein 5 out of 9 analysts tag the stock as Strong Buy.

Matson (MATX) -12.36%. The Hawaii-based shipping company’s stock slumped the most on Nov. 14 (-7.30%) this week. The stock was among the top five gainers about a month ago, however, YTD, the shares have declined -29.05%. The average Wall Street Analysts’ Rating on MATX is Hold, wherein 3 out of 3 analysts view the stock the same. The SA Quant Rating agrees with a Hold rating too, wherein Growth carries a factor grade of F but Valuation has a score of A+.

The chart below shows YTD price-return performance of the worst five decliners and XLI:

SiteOne Landscape Supply (SITE) -11.82%. The Roswell, Ga.-based wholesale distributor of landscape supplies swapped places from the gainers list from last week to land a spot among the losers this week. YTD, the stock has not done well too as it has lost -50.38%. The SA Quant Rating on SITE is Sell, with a B- score for Profitability and C- for Momentum. The average Wall Street Analysts’ Rating completely differs with a Buy rating, wherein 4 out of 10 analysts see the the stock as Strong Buy and the remaining 6 call it Hold.

Plug Power (PLUG) -11.46%. The Latham, New York-based company also gave back made last week. The stock was among the top five decliners about a month ago as well. YTD, PLUG has shed -43.89% but the average Wall Street Analysts’ Rating on the shares is Buy, wherein 14 out of 29 analysts see the the stock as Strong Buy. The rating is in contrast to the SA Quant Rating of Hold, with a C+ score for Valuation but A+ for Growth.

Spirit AeroSystems (SPR) -10.62%. The Wichita, Kan.-based company’s stock has tumbled -41.42% YTD and has an SA Quant Rating of Sell, with Profitability carrying an a score of D+ and Growth F. The average Wall Street Analysts’ Rating disagrees with a Buy rating, wherein 5 out of 14 analysts seeing it as a Strong Buy.



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