Federal Reserve Chair Jerome Powell’s noted in his testimony before a House committee earlier this week, that the Fed would not stop tightening monetary policy until there were clear signs that inflation had peaked. Amid fears of recession, the week ending June 24 saw Plug Power (NASDAQ:PLUG) lead the industrial gainer, while Star Bulk Carriers (NASDAQ:SBLK) was the worst decliner.
The eleven sectors of the S&P 500 were in the green this week, with SPDR S&P 500 Trust ETF (SPY) finishing (+6.39%) after being in the red for two weeks in a row. However, YTD, the ETF is -17.87%. The Industrial Select Sector SPDR (XLI) rose +3.54%, after two staring at losses for two weeks straight. YTD, XLI is -16.06%.
The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +17% each this week. However, YTD, only one out of these five stocks is in the green.
Plug Power (PLUG) +27.93% was back among the top five gainers after over a month ago to top the list, as the stock gained throughout the week. The Latham, New York-based company, which makes hydrogen-fueled cell systems, has a SA Quant Rating of Sell, which which takes into account factors such as growth and profitability, among others things. The rating is in contrast to the average Wall Street Analysts’ Rating of Buy, wherein 14 out of 28 analysts give the stock a Strong Buy rating. YTD, the stock has declined -35.42%, the most among this week’s top five.
Upwork (UPWK) +23.06% made it two in a row taking a place in the top five, as the stock gained consistently in the week. The average Wall Street Analysts’ Rating is Buy, with an Average Price Target of $32.18. The rating is in contrast to the SA Quant Rating of Hold, with Profitability and Momentum both having a factor grade of D+. YTD, the stock has fallen -35.01%.
The chart below shows YTD price-return performance of the top five gainers and SP500TR:
Kanzhun (BZ) +22.82% gained the most at the start of the week (June 21 +10.12%) and then again on June 24 following its Q1 results, which saw revenue soaring +49.6% Y/Y. The Chinese online recruitment platform was the top industrial gainer for two weeks straight earlier in June but the stock has seen its fare share of volatility. BZ was among the worst five decliners over a month ago, having made to the top just week prior to that. Meanwhile, similar trends were seen in March. The average Wall Street Analysts’ Rating is Buy, while the SA Quant Rating on the stock is Hold. YTD, BZ is -21.62%.
Frontier Group (ULCC) +19.37% Spirit Airlines (SAVE) +17.66% took the fourth and fifth spot, respectively. Spirit gained after Jetblue raised its offer to $33.50/share as it continued to fight Frontier (ULCC) in its quest to buy the ultra-low cost carrier. Meanwhile, Frontier also raised its offer by $2 per share to $4.13/share ahead of an upcoming shareholders’ vote on the proposal. YTD, Frontier has declined -22.33%, while Spirit has risen +12.22% — the only one among this week’s top five to be in the green.
This week’s top five decliners among industrial stocks (market cap of over $2B) all lost more than -5% each. YTD, only two out of five of these stocks are in the green.
Shipping companies Star Bulk Carriers (SBLK) -8.49 Golden Ocean (GOGL) -8.34% were number 1 and 2, respectively on the list. Shipping stock fell the most on June 22 amid fears of recession and impact on container demand. SBLK was also among the worst five decliners, along with ZIM Integrated Shipping, two weeks ago. However, YTD, SBLK (+7.01%) — which was among 2021 top five industrial stocks (in this segment) — and GOGL (+22.90%) are the only two among this week’s decliners to still be in the green.
The SA Quant Rating on both SBLK and GOGL is a Strong Buy, while the average Wall Street Analysts’ Rating for the two is Buy.
The chart below shows YTD price-return performance of the worst five decliners and XLI:
Seaboard (SEB) -7.88%. The Merriam, Kan.-based company took the third spot among decliners. YTD, the stock is -4.92%.
AGCO (AGCO) -6.46%. The Duluth, Ga.-based farm equipment maker, along with its peers fell to new 52-week low on June 23 amid recession concerns. The stock also saw a downgrade at Morgan Stanley amid the macro scenario. The SA Quant Rating and also the average Wall Street Analysts’ Rating on AGCO is Buy. YTD, the stock has declined -10%.
Atkore (ATKR) -5.54%. The Harvey, Ill.-based electrical products maker acquired acquired United Poly Systems earlier in the week. The SA Quant Rating on the stock is Strong Buy, while the average Wall Street Analysts’ Rating is Buy. YTD, Atkore has declined -25.27%.
Read More: Plug Power top industrial gainer, while shipping stocks lead losers’ pack