Energy/electricity-related stocks were among the top gainers for the week ended July 8, while shipping stocks led declines amid looming recession fears as Federal Reserve policymakers eye a 75 basis point rate hike at their next meeting. fighting inflation.
The SPDR S&P 500 Trust ETF (SPY) returned to gains (+3.03%) after dipping into the red a week ago. Year-to-date, the ETF is down -18.17%. Industrial Select Sector SPDR ( XLI ) was also in the green (+0.65%) after falling the previous week. YTD, XLI is -16.92%.
The five biggest gainers in the industrials sector (stocks with a market cap of over $2 billion) are each up more than 14% this week. Since the beginning of the year, however, all five of those stocks are down.
Plug Power (NASDAQ:PLUG) +19.31% regained the top spot after two weeks. Shares rose during the week but peaked on July 7 (+7.83%) as solar and clean energy stocks fell on US government plans to lift tariffs on Canadian solar products and China’s consideration of a $220 billion stimulus package to shore up its economy.
However, New York-based Latham shares are down -29.97% year-to-date. The stock’s SA Quant rating is Sell, which takes into account factors such as growth, profitability and others. The rating contrasts with the average Wall Street buy rating, which has 14 out of 28 analysts giving the stock a strong buy rating.
The increase (UPWK) +17.26% appeared to reflect the performance of Plug stock as it ranked second as it was two weeks ago. The Santa Clara, California-based company, which offers an online job market, was also among the top 5 performers (in this segment) in June. Year-to-date, however, shares are down -29.01%. The SA Quant rating for the stock is Hold, profitability has a factor of D+ while valuation has a rating of F. However, the average Wall Street analyst rating differs, giving the stock a Buy rating with an average price target of $32.18.
The chart below shows the price-yield performance of the five biggest gains and the SP500TR year-to-date:
Ballard Power Systems (BLDP) +16.03%. The Canadian fuel cell systems developer was among stocks gaining (+9.88%) on July 7 in line with the US-Canada deal to eliminate tariffs on Canadian solar products. Stocks also benefited from news that US solar and wind plants produced more electricity than nuclear plants for the first time in April. Year-to-date, Ballard is down -41.80%, the sharpest of the week’s top five gains. The average Wall Street analyst rating for BLDP is Hold, with 13 of 23 analysts recommending the stock as a Hold. The rating contrasts with Sell’s SA Quant Rating, where the assessment has a factor score of C and profitability factor score of D-.
Frontier Group (ULCC) +14.73%. A setback for Frontier came late in the week when Spirit Airlines (SAVE) delayed a shareholder vote on the company’s acquisition to give it more time to continue negotiations with JetBlue (JBLU). SA contributor Dhierin Bechai wrote: Looking at the value of the offers from an overall and monetary perspective, Frontier’s offer is unattractive at best. The average Wall Street analyst rating for ULCC is Strong Buy, with an average price target of $16.86, contradicting SA Quant’s rating of Hold. Frontier shares are down -20.78% year-to-date.
Blossom Energy (BE) +14.55%. San Jose, California-based Bloom, which offers an energy generation platform, also benefited from the proposed elimination of Canadian tariffs on solar products. The stock also saw Northland initiate coverage with an outperform rating, calling the company “at an inflection point” and strongly positioned to leverage its solid oxide platform. Year-to-date, BE is down -13.82%, but Wall Street’s average analyst rating is Buy, while SA Quant Rating is Hold.
This week’s five biggest losers among industrials stocks (market cap over $2bn) each lost more than -5%. As of the beginning of the year, only one of those five is in the green.
Golden Ocean (NASDAQ:GOGL) -10.48% led the declines, followed by Star Bulk Carriers (SBLK) -10.12% and ZIM Integrated Shipping (ZIM) -5.67% in second and third on growing To ponder. Recession. More than 2% of global cargo capacity is in the North Sea, according to an analysis by German economic institute IfW, while cargo volumes in the Red Sea fell in June, affecting European trade.
“Overall, world trade shows a slightly positive trend in June, but significant traffic jams, high transport costs and the resulting difficulties in the supply chain are dampening the exchange of goods,” said Vincent Stamer, head of the Kiel Trade Indicator.
However, Stamer added that the situation in North America has improved. “The pandemic caused by high demand for consumer goods has slowed and congestion in the Port of Los Angeles has cleared,” Stamer noted.
The following chart shows the price and yield development of the five fastest declining companies and the XLI since the beginning of the year:
Bermuda-based GOGL had a relatively better first half compared to the broader market and some industrial stocks (in this segment). The share was one of the top 5 winners (in this segment) in the first half of the year (+29.48%). SA Quant’s rating for GOGL is a Strong Buy with an A+ factor for both profitability and valuation. Meanwhile, Wall Street’s average analyst rating is buy. Year-to-date, the stock is the only one of this week’s declines that is in the green.
Star Bulk, which was among the top 5 industrial stocks (in this segment) in 2021, was also among the losers again after two weeks, alongside GOGL. SA Quant and the average Wall Street analyst rating for SBLK is Strong Buy. Year-to-date, SBLK is -0.93%.
YTD, ZIM is down -24.31% but has received a Strong Buy SA Quant rating, which contrasts with the average Hold rating from Wall Street analysts.
ESAB (ESAB) -5.67%. The North Bethesda, MD-based manufacturer of welding products ranked fourth among rejecters. The stock is down -16.68% year-to-date, but Wall Street analysts have an average buy rating with an average target price of $57.67.
Brady (BRC) -4.34%. The Milwaukee, Wisconsin-based occupational safety products company’s stock is down -16.16% year-to-date. BRC’s SA Quant rating is Hold, which contrasts with the average Buy rating from Wall Street analysts.