Takeover Rumors Propelled Ryder to Top Industry Winner, Eve Swaps Winner Tag for Loser
The week ending September 30, a series of data were released, which included an unchanged estimate for US GDP for the second quarter and a below consensus corporate profit for the second quarter. However, sustainable goods orders fell less than expected in August, and an improvement consumer confidence for the second consecutive month was something to celebrate.
While Ryder led the gainers (in this segment) on takeover speculation, two electric flying taxi stocks plunged this week. Eve led the pack, as it came off a three-week winning streak, while airline and air defense stock were also among those affected. The SPDR S&P 500 Trust ETF (SPY) was in the red for the third consecutive week (-2.93%), 10 out of 11 sectors being in the red. Since the beginning of the year, SPY has -24.80%. The Industrial Select Sector SPDR (XLI) was also in the red for the third week (-2.25%). Since the start of the year, XLI has been -21.71%.
The top five gainers in the industrials sector (stocks with a market capitalization of over $2 billion) all gained more than +5% everyone this week. However, since the start of the year, these five stocks have been in the red.
Ryder system (NYSE:R) +12.87%. Shares of the Miami-based company jumped the most on Sept. 27 (+14.69%) after reports that Apollo Global was considering taking over the logistics and transportation provider. The stock fell just two days later on news that a group of banks had suspended a deal to help fund Apollo’s acquisition of Lume’s telecommunications and broadband assets.
The SA Quantitative Equity Rating is a hold, which considers factors such as momentum, profitability, and valuation, among others. R has an A factor rating for valuation and profitability. Wall Street’s average analyst rating is consistent with its own Hold rating, in which 7 out of 8 analysts label the stock as Hold. Since the beginning of the year, the stock has lost -8.42%.
FirstSource Builders (BLDR) +8.83%. The Dallas-based company returned to the top five weekly winners after about three months; the stock rose the most on September 28 +7.68% as the general market gained (the S&P 500 broke off a six-day losing streak on September 28 but crashed over the two days remaining). However, YTD, BLDR dropped -31.26%, the most among the top five winners this week for this period. The quantitative SA rating on BLDR is Strong Buy, with Growth possessing a score of C and Momentum with a factor rating of B+. Wall Street’s average analyst rating is in line with its own Strong Buy rating, in which 9 out of 13 analysts consider the stock as such.
The chart below shows the year-to-date price-yield performance of the top five winners and the SP500:
Budget Opinion (RCA) +7.39%. The best performing stock of 2021 (+455.95%) (in this segment) also gained on September 28 (+7.02%). But since the start of the year, shares of the car and truck rental company have fallen -28.41%. The average Wall Street analyst rating on CAR is Hold, where 3 out of 5 analysts consider the stock to be so. The SA quantitative rating is also maintained, with profitability possessing a score of A, while growth with a factor rating of B-.
Atkore (ATKR) +6.97%. The Harvey, Illinois-based electrical goods maker has an SA Quant Rating of Hold, with a C factor rating for Momentum and an A rating for Valuation. The average Wall Street analyst rating differs from a buy rating, in which 3 out of 4 analysts rate the stock as a buy. Since the beginning of the year, the title has fallen -30.02%.
China Eastern Airlines (CEA) +5.31%. Shares of the Shanghai-based company also returned to the top five gainers after about three months. The SA Quant rating on the stock is Hold, with profitability possessing a D factor rating while an A+ score for growth. The rating contrasts with the strong buy rating of a Wall Street analyst. Since the beginning of the year, the title has fallen -6.76%.
This week’s top five declines among industrial stocks (market cap over $2 billion) all lost more than -8% each. Since the start of the year, these five stocks have been in the red.
Eve holding (NYSE: EVEX) -21.56%. Florida-based aircraft maker eVTOL’s stock has been volatile this week, after falling -18.47% on September 27 but won the following day (+14.17%) and fell back the following two days. Within a week, the company signed a non-binding order for up to 200 eVTOLs with FlyBlade India.
The SA quantitative rating on equities is a hold, with an F factor rating for both profitability and valuation. The rating contrasts with the average buy rating from Wall Street analysts, in which 2 out of 4 analysts rate the stock as a strong buy. Since the beginning of the year, the stock has lost -9.23%.
MasTec (MTZ) -12.94%. The stock fell the most on September 29 (-7.32%). Earlier in the week, the Florida-based infrastructure construction company extended the deadline for its exchange offer on outstanding Infrastructure and Energy Alternatives bonds. The average Wall Street analyst rating on the stock is Strong Buy, in which 8 out of 12 analysts consider the stock strong. The SA Quant rating differs with a Hold rating, with Growth possessing a D score and Momentum with a C+ factor rating. Since the start of the year, stocks have fallen -31.19%.
The chart below shows the year-to-date price-yield performance of the five worst declines and XLI:
Joby Aviation (JOBY) -12.53%. A study by Bleecker Street Capital, a hedge fund led by Chris Drose, claimed the electric taxi maker was presenting an overly optimistic view of its manufacturing capacity to investors, while laying out modest production plans for its current factory based in Marina, Calif., CNBC. reported September 30. The stock fell the most this week on September 29 (-9.00%). Meanwhile, SA contributor Pinxter Analytics wrote in a September 28 post that it was neutral on the company’s short-term outlook and slightly bearish on its long-term outlook. Since the beginning of the year, the title has collapsed -40.68%.
The SA Quant rating on Joby is Hold, with a score of D- for profitability and F for valuation. The average Wall Street analyst rating differs from a Buy rating, in which 4 out of 6 analysts rate the stock as Hold.
Spirit Airlines (SAVE) -12.38%. The stock collapsed -5.99% on Sept. 30 after notice from the NYSE of a special $2.50/share dividend associated with the company’s planned sale to JetBlue. Since the beginning of the year, the title has fallen -13.87%.
Spirit AeroSystems (SPR) -8.67%. Shares of the Wichita, Kansas-based company fell -49.13% Year-to-date, the most among the five worst declines this week. The SA quantitative rating on the stock is Strong Sell, with Growth carrying an F score and Momentum with a D- factor. The average Wall Street analyst rating differs from a Buy rating, in which 8 out of 14 analysts consider it a Strong Buy.