The Industrial Select Sector (XLI) has had a rough couple of weeks, with declines of -2.35% for two consecutive weeks. Even amidst this financial crisis, the SPDR S&P 500 Trust ETF (SPY) managed to gain +1.06%, driven by the Technology and Communication sectors. The US regulators took over Signature Bank and Silicon Valley Bank over liquidity concerns, while Switzerland’s Credit Suisse received a $54B lifeline from its Swiss National Bank. The upcoming monetary policy meeting is expecting a 25-basis point rate hike by the Federal Reserve.
Despite all these, there are some industrial gainers and decliners to note. Let’s discuss them in detail.
Industrial Gainers
ZIM Integrated Shipping Services (NYSE:ZIM) gained a significant +22.53%. The Israeli shipping company took the top spot among industrial gainers due to its Q4 earnings show. Investors are optimistic about the company’s growth after its earnings beat, positive outlook, and the declaration of a $6.40/share quarterly dividend. YTD, ZIM is up by an impressive +39.50%.
ZTO Express (Cayman) (ZTO), a Chinese logistics services provider, witnessed a gain of +10.53% for the second week in a row. The stock climbed +7.94% despite missing Q4 estimates. This is because investors see its potential for profitability, with a Buy SA Quant Rating and Strong Buy average Wall Street Analyst rating. YTD, the stock has gained +5.88%.
FedEx (FDX), a logistics peer, had a gain of +9.50%. The stock rose +7.97% after its Q3 earnings show, where cost-saving efforts boosted performance. The company also raised forecasts for FY2023, leading to several analysts upgrading the stock. YTD, FDX has gained +27.20%.
Rentokil Initial (RTO), a UK-based pest control services provider, rose +7.39% after FY22 revenue growth of about 25% YoY. Despite its Hold SA Quant Rating, the average Wall Street Analysts’ Rating rates the stock as Buy. YTD, RTO is up by +7.01%.
Canadian Pacific Railway (CP) witnessed a gain of +5.69% after Surface Transportation Board approved its acquisition of Kansas City Southern. The average Wall Street Analyst’s Rating sees the stock as Buy, while the SA Quant Rating is Hold. YTD, CP has gained +3.62%.
Industrial Decliners
Chart Industries (NYSE: GTLS) fell sharply, losing -22.09% of its value. Investors were disappointed with its updated FY2023 outlook, including its Howden acquisition. Despite a Strong Buy average Wall Street Analyst very rating, its SA Quant Rating is Sell with a factor grade of F for Profitability and D for Momentum. YTD, GTLS is down by -10.67%.
Herc Holdings (HRI) saw a decline of -16.27%. The Florida-based company that rents earthmoving, trucks, and other equipment saw its shares sink the most after a -9.35% fall on Monday. Despite having a Strong Buy average Wall Street Analyst rating, the SA Quant Rating is Hold with a score of B- for Valuation and C for Momentum. YTD, HRI has declined by -19.59%.
United Airlines (UAL), with a -15.56% decline, saw a pessimistic outlook for the first quarter of 2023, leading to its shares tumbling for three consecutive days. Despite this decline, UAL’s SA Quant Rating is Strong Buy, with a score of A+ for Profitability and A for Growth. YTD, UAL is up by +14.16%.
Terex (TEX), a heavy machinery maker, fell -14.88% on Friday after Bank of America downgraded its stock rating to Neutral from Buy. Despite having a Strong Buy SA Quant Rating, the average Wall Street Analyst Rating sees it as Buy. YTD, TEX remains in the green, up by +6.06%, along with UAL.
Alaska Air Group (ALK) fell -14.77% after it lowered its margin forecast for Q1 amid concerns over high fuel costs. The SA Quant Rating for ALK is Buy, while the average Wall Street Analyst rating is Strong Buy. YTD, ALK is down by -8.50%.
Conclusion:
Even amidst market uncertainty, there are some industrial gainers and decliners to take note of. Investors are optimistic about the growth potential of companies like ZIM Integrated Shipping Services (NYSE:ZIM), ZTO Express (Cayman) (ZTO), FedEx (FDX), Rentokil Initial (RTO), and Canadian Pacific Railway (CP). Meanwhile, there are sharp declines for companies like Chart Industries (NYSE: GTLS), Herc Holdings (HRI), United Airlines (UAL), Terex (TEX), and Alaska Air Group (ALK). As market conditions are volatile, investors should keep a close eye on these companies’ performance going forward.#Earnings #Zim #sail #top #industrial #gainer #week #outlook #sinks #Chart
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