Eve soars to No. 1 industrial gainer, as capacity / recession drag airlines to top losers

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Electric air-taxi maker Eve rose to the top among gainers, while concerns related to fuel prices, capacity and a looming recession pushed airline stocks United and American, in their own way, to the decliners’ list.

For the week ending July 23, eight out of the 11 sectors in the S&P 500 ended in the green. The SPDR S&P 500 Trust ETF (SPY) ended with gains (+ 2.59%) after declining a week ago, a trend which has been maintained YTD, as the ETF is -16.82%. The Industrial Select Sector SPDR (XLI) also saw gains (+ 4.16%) after being in the red a week before. YTD, XLI is -14.52%.

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 out of these five stocks are in the green.

Eve (NYSE: EVEX) + 23.85%. The Melbourne, Fla.-based company began the week by unveiling its first full-sized eVTOL (electric vertical take-off and landing vehicle) cabin mock-up which was followed up the week by announcing two tentative contracts, one for an order of up to 150 eVTOL vehicles with Embraer and BAE Systems, and another a collaboration with Halo Aviation as the launch customer for its Urban Air Traffic Management solution.

The SA Quant Rating on the shares is a Strong Sell, which takes into account factors such as Valuation and profitability, among others things. The rating is in contrast to to the average Wall Street Analysts’ Rating of Buy, wherein 1 analyst gives the stock a Strong Buy, while another has a Hold rating. YTD, Eve, which was a subsidiary of Brazilian aircraft maker Embraer before going public via a merger with SPAC Zanite Acquisition, has shed -18.37%.

Vertiv (VRT) + 18.68%. The Ohio-based provider of equipment / services to data centers, which was the worst performing industrial stock (in this segment) in H1, gained throughout the week, barring July 18 (-1.68%). The SA Quant Rating on the stock is Strong Sell, with Profitability and Growth, both having a factor grade of C-. However, the average Wall Street Analysts’ Rating differs and gives the stock a Buy rating, wherein 4 out of 10 analysts tag it as a Strong Buy: YTD, the stock has declined -57.51%the most among this week’s gainers.

The chart below shows YTD price-return performance of the top five gainers and SP500TR:

Mueller Industries (MLI) + 15.82%. The plumbing products maker gained the most following its Q2 results (July 19 + 14.49%) which saw its revenue rise + 13.9% Y / Y. The SA Quant Rating and the average Wall Street Analysts’ Rating, both have a Strong Buy rating on the stock. YTD, the stock has risen + 4.19%the only stock among this week’s gainers which is in the green.

Plug Power (PLUG) + 14.10%. The Latham, New York-based company was back among the gainers after being the worst decliner a week ago. However a week prior to that the stock was the top gainer. The SA Quant Rating on the stock is Sell, with Profitability having a factor grade of F and Growth having a C- factor grade. 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 share price has fallen -37.51%.

Herc (HRI) + 13.74%. The Bonita Springs, Fla.-based company, which rents earthmoving equipment, saw its stock rise throughout the week. Herc also reported Q2 results, beating revenue estimates but failed to beat non-GAAP EPS estimates. The average Wall Street Analysts’ Rating on HRI is Buy, with an Average Price Target of $ 173.55, contradicting an SA Quant Rating of Hold. YTD, the stock has lost -33.13%.

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

United Airlines (NASDAQ: UAL) -6.32%. The Chicago-based company transitioned to the decliners’ list after being among the gainers a week ago. The stock lost the most on July 21 (-10.17%) after CEO Scott Kirby warned of high fuel prices, a potential recession and operational challenges posing threats to the industry over the next six to 18 months. Q2 non-GAAP EPS missed estimates despite delivering its first profitable quarter since COVID-19 and the highest Q2 revenue tally in its history.

The SA Quant Rating on the stock is Buy, with Profitability having a factor grade of B + and Momentum having a C factor grade. The average Wall Street Analysts’ Rating is also Buy, wherein 6 out of 20 analysts give the stock a Strong Buy rating. YTD, UAL has declined -17.02%.

American Airlines (AAL) -5.46%. The Texas-based company’s stock lost the most on July 21 (-7.43%) as capacity concerns overshadowed a Q2 top and bottom-line beat. The EPS was also the first positive figure reported by the airline in 9 quarters. The week also saw AAL sign a sustainable aviation fuel deal worth $ 2.75B with Gevo. The average Wall Street Analysts’ Rating on AAL is Hold, wherein 14 out of 20 analysts tag it with a Hold rating. This differs with the SA Quant Rating of Strong Buy, with Profitability having a factor grade of C + while Valuation having a factor grade of A. YTD, AAL has shed -23.83%.

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

Mercury Systems (MRCY) -3.69%. The Andover, Mass.-based aero / defense products maker saw its stock dip the most on July 18 (-8.83%) but recovered slowly as the week went on. The company signed a contract to provide radar testing systems to Leonardo UK. YTD, the stock has risen + 11.35%. The average Wall Street Analysts’ Rating is Buy. Meanwhile, the SA Quant Rating on the stock is Hold.

FTI Consulting (FCN) -2.97%. The Washington, DC-based company is the only one besides Mercury Systems which has been in the green YTD among this week’s decliners. YTD the stock has gained + 18.66%. The SA Quant Rating and the average Wall Street Analysts’ Rating, both, on FCN is Strong Buy.

Hayward (HAYW). The Berkeley Heights, NJ-based pool equipment maker may have shed only -2.94% this week but YTD, the stock has declined -48.38%. The average Wall Street Analysts’ Rating is Buy, which differs with the SA Quant Rating of Hold.

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