Elbit rises to No. 1 industry winner, while Vertiv sees No. 1 loser tag

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While Elbit has risen steadily over the past six months, Vertiv has lost over 60% of its market value over the same period.

The S&P 500 has been in the red for four of the the first six months of 2022. For the week ending July 1, the SPDR S&P 500 Trust ETF (TO SPY) was back in the loss (-2.27%) after being in the green one the week ago, who had broken a two-week losing streak. Since the start of the year, the ETF has been -19.73%. The Select Industrial Sector SPDR (XLI) also fell -0.81%, after a rare week of gain last week. Since the start of the year, XLI has been -16.74%.

The top five gainers in the industrials sector (stocks with a market capitalization of over $2 billion) all gained more than +8% everyone this week. However, since the beginning of the year, only three of these five titles are in the green.

Elbit systems (NASDAQ:ESLT) +11.11%. The Israeli air defense company is not only this week’s top earner, it was also among the top five winners in June and for the first six months of 2022 (in this segment). The week saw Elbit sign three separate deals: a $70 million contract to provide an electronic warfare solution; a $220 million deal to provide precision guidance kits for airborne munitions; and a $548 million contract with a country in the Asia-Pacific region. The company also completed the sale of Ashot to FIMI Opportunity Funds for $84 million.

The quantitative SA rating on ILEC is Hold, which takes into account factors such as growth and profitability, among other things. The average Wall Street analyst rating is also Hold. Since the beginning of the year, the title has won +31.10%the most in the top five this week.

China Eastern Airlines (CEA) +9.42% The Chinese company earned the most on June 28 (+6.56%) after travel stocks jumped following plans by the Chian National Health Commission to ease quarantine restrictions. CEA was also among the top five winners (in this segment) in Q2. The SA Quant rating for the stock is Hold, with profitability and valuation both having a factor rating of B-. The rating contrasts with a strong buy rating from a Wall Street analyst. Since the beginning of the year, the title has increased +2.97%.

The chart below shows the year-to-date price-yield performance of the top five winners and the SP500TR:

Ritchie Bros. Auctioneers (RBA) +9.28% was also a top five winner for June and Q2 in addition to taking a spot among this week’s winners increasing throughout the five days. Since the start of the year, the RBA has been +10.26%.

China Southern Airlines (ZNH) +8.95% also increased with its counterpart CEA following a report on the shortening of the quarantine period for international travelers in China. Later in the week, the company also signed a $12.2 billion deal to buy 96 Airbus planes. Since the beginning of the year, the title has fallen -2.70%.

FirstSource Builders (BLDR) +8.83%. The Dallas-based company may have cracked the top five this week, but YTD, lost -32.96%, the most among this week’s winners. However, the SA Quant rating as well as the average Wall Street analyst rating on the stock is Strong Buy. Nine out of 13 analysts rate it a strong buy.

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.

Vertiv (NYSE: VRT) -18.96% had a similar fate as top gainer ESLT but in the opposite direction. The Ohio-based company, which makes digital infrastructure-related products, was not only the top decliner this week, but was the No. 1 decliner (in this segment) in the first half, losing -67.12%. Year-to-date, the stock has fallen the most among the worst 5 this week. The SA quantitative rating on the stock is Hold, with Profitability having a C- factor rating and Momentum having a D- factor rating. The rating contrasts with the average Wall Street analyst buy rating, in which 4 out of 10 analysts give the stock a strong buy rating.

Nikola (NKLA) -15.86%. The electric vehicle maker was also the worst performing stock in June and the second quarter (in this segment), down -33% and -57%, respectively; and among the top five declines in the first half, losing -51.82%. This week, the company pushed back a shareholders’ meeting to July 18 to vote on a proposal to increase the number of outstanding shares from 600 million to 800 million. The average Wall Street analyst rating is Hold, with an average price target of $10.29. The rating contrasts with the SA Quantitative Selling Rating, with Profitability and Momentum both having a factor rating of F. Read Story – Warning: NKLA is at high risk of performing poorly.

The chart below shows the year-to-date price-yield performance of the five worst declines and XLI:

LegalZoom.com (LZ) -9.82%. The Glendale, Calif.-based company, which provides an online platform for legal and compliance solutions, was among the decliners this week after posting gains about a month ago. The SA Quant rating on LZ is a strong sell, which contrasts with the average buy rating from Wall Street analysts. YTD, LZ lost -30.30%. Read – Warning: LZ has a high risk of poor performance.

Worldwide Hertz (HTZ) -8.83%. The Estero, Florida-based car rental company was among the winners two weeks ago, but since the start of the year it has fallen -33.49%. However, the average Wall Street analyst rating is Buy, where 2 out of 8 analysts give a Strong Buy rating.

Ryanair (RYAAY) -8.50%. The Ireland-based airline has a strong average Buy rating from Wall Street analysts, while the SA quantitative rating on the stock is Hold. Since the beginning of the year, RYAAY has declined -32.91%.

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