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The Industrial Select Sector SPDR Fund ETF (XLI) climbed +1.82% for the week ended Aug. 23, while the SPDR S&P 500 Trust ETF (SPY) rose +1.41%.
Powell Industries (NASDAQ:POWL) was the top industrial gainer (in the segment) of the week, which saw shares of building and infrastructure making companies jump after Federal Reserve Chair Jerome Powell’s speech on Friday significantly raised the odds for a rate cut in September. Meanwhile, Dycom Industries’ (NYSE:DY) stock was the number one decliner in the week, which included stocks of aero-defense companies and airport operators.
Industrials was among the 10 of the 11 S&P 500 sectors which ended the week in the green. Year-to-date, or YTD, XLI has risen +13.41%, while SPY has soared +18.27%.
The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +10% each this week. YTD, all 5 of these stocks are in the green.
Powell Industries (POWL) +14.39%. Shares of the Houston-based company, which makes power control room substations, were among the many that rose on Friday (+8.29%), after Federal Reserve Chair Jerome Powell signalled that the central bank is set to start cutting interest rates from a two-decade high. YTD, +118.08%.
POWL has a SA Quant Rating — which takes into account factors such as Momentum, Profitability, and Valuation among others — of Strong Buy. The stock has a factor grade of A- for Profitability and A+ for Growth. The average Wall Street Analysts’ (1 analyst in total in this case) Rating differs and has a Hold rating.
Builders FirstSource (BLDR) +13.08%. The building material maker’s stock jumped +8.75% on Friday. YTD, +9.15%. The SA Quant Rating on BLDR is Hold, with a score of B- for both Valuation and Momentum. The average Wall Street Analysts’ Rating is more positive, with a Buy rating, wherein 8 out of 15 analysts see the stock as Strong Buy.
The chart below shows YTD price-return performance of the top five gainers and SPY:
IES Holdings (IESC) +12.60%. Shares of IES, which provides network infrastructure installation services, soared on Friday too (+10.23%). YTD, +142.91%.
TopBuild (BLD) +10.36%. The stock climbed the most on Friday (+6.79%). YTD, +9.73%. The SA Quant Rating on BLD is Hold, while the average Wall Street Analysts’ Rating is Buy.
Advanced Drainage Systems (WMS) +10.17%. The Hilliard, Ohio-based company, which makes pipes and water management products, saw its stock jump the most on Wednesday (+4.32%), besides seeing a spike on Friday (-3.98%). YTD, +16.06%. The SA Quant Rating on WMS is Hold, which is in contrast to the average Wall Street Analysts’ Rating of Strong Buy.
This week’s top five decliners among industrial stocks (market cap of over $2B) all lost more than -4% each. YTD, 2 out of these 5 stocks are in the red.
Dycom Industries (DY) -6.76%. Shares of the company, which provides contracting services to telecom and utility industries, fell -7.55% on Wednesday after it provided guidance for the current quarter along with its quarterly results. However, YTD, the stock has risen +56.50%.
The SA Quant Rating on DY is Buy, with a factor grade of B+ for Growth and C for Profitability. The average Wall Street Analysts’ Rating agrees and has a Strong Buy rating, wherein 8 out of 8 analysts view the stock as such.
Mercury Systems (MRCY) -6.51%. The defense and aerospace product maker’s stock was among the top five gainers last week. This week, the stock dipped the most on Thursday (-3.76%). YTD, +2.52%. The SA Quant Rating on MRCY is Hold, with a score of B+ for Momentum and C+ for Valuation. The average Wall Street Analysts’ Rating concurs and has a Buy rating too, wherein 4 out of 9 analysts tag the stock as such.
The chart below shows YTD price-return performance of the worst five decliners of the week and XLI:
Loar (LOAR) -6.36%. The company — which makes components for aircraft, and aerospace and defense systems — saw its stock decline the most on Wednesday (-3.40%). Loar too was among the top five gainers last week. YTD, +43.81%. The average Wall Street Analysts’ Rating on LOAR is Buy.
Grupo Aeroportuario del Centro Norte (OMAB) -5.98%. The Mexican airport operator’s stock fell -3.29% on Wednesday. YTD, -26.47%. The SA Quant Rating on OMAB is Sell, which is in contrast to the average Wall Street Analysts’ Rating of Hold.
Corporación América Airports (CAAP) -4.60%. The Luxembourg-based airport operator saw its stock decline -4.25% on Thursday following its second quarter results (post market Wednesday). YTD, -4.42%. The SA Quant Rating and the average Wall Street Analysts’ Rating, both, on CAAP is Buy.