Acquisitions, deals and earnings propelled the top five industry gainers, in a tough week for stocks, as quarterly results were the main themes for the worst decliners.
The S&P 500 ended the week ending Feb. 11 in the red amid rising tensions between Ukraine and Russia. SPDR S&P 500 Trust ETF (NYSEARCA: SPY) firm -1.84% after being in the green for two consecutive weeks. Nine of the 11 major S&P 500 sector indices fell. Industrial Select Sector SPDR (NYSEARCA:XLI) -0.75% fell again after being in the green last week. Prior to this, XLI had closed negative for three consecutive weeks.
The top five gainers in the industrials sector (stocks with a market capitalization of over $2 billion) all gained more than +12%.
Cornerstone Building Marks (NYSE: CNR) +30.59% increased the most at the start of the week (February 7 +13.70%) and gained more on Feb. 10 following a report that private equity firm Clayton, Dubilier & Rice was considering an offer to buy the rest of the company it doesn’t already own. Wall Street analysts’ rating is Buy on the stock with an average price target of $23.
Joby Aviation (NYSE:JOBY) +25.72%. The air taxi company climbed to second place after being among the five worst decliners twice in January. The company has grown +21.09% on February 08 following an agreement with SK Telecom of South Korea to create an emission-free carpooling service in South Korea. Meanwhile, Morgan Stanley reiterated an overweight rating on Joby, believing the company’s key partnerships will bear fruit.
The chart below shows the 6-month total return performance of the top five winners and XLI:
Spirit Airlines (NYSE: SAVE) +21.45%won the most on February 7 (+17.17%) following its fourth quarter results, which beat analysts’ estimates, and the announcement that Frontier Airlines (NASDAQ: ULCC) acquired Spirit in a $2.9 billion cash and stock transaction. The key question surrounding the deal is whether it will be able to receive US regulatory approval. News of the airline industry’s first merger in six years also helped lift shares of Boeing and other airlines on Feb. 7.
Bloom Energy (NYSE:BE) +18.46% took a place among the winners this week after being among the decliners two weeks ago. The company exploded the most on February 11 (+8.97%), the day after the release of its fourth quarter results on February 10 after the market. Bloom’s fourth-quarter revenue rose 37% year-over-year to $342 million, well above the consensus estimate of $309 million.
Golden Ocean Group (NASDAQ:GOGL) +12.36%. The shipping company rounded up the top five gainers of the week ahead of its fourth quarter results on Feb. 16. Over the past year, the title has won +96.54%.
The week’s top five declines among industrial stocks (market cap over $2 billion) lost more than -seven% each.
LPN (NYSE:IAA) -20.33%. The auction solutions provider went bankrupt on February 11 (-22.15%) following its fourth quarter results. The company beat revenue estimates but failed to beat non-GAAP EPS estimates. The Wall Street analyst rating is a strong buy with an average price target of $65.17.
Insperity (NYSE: DK) -14.31% shares also felt the anger after the company’s fourth quarter results on February 10 after the market, as shares fell -15.18% February 11. The HR solutions provider exceeded revenue estimates but did not exceed non-GAAP EPS estimates.
The chart below shows the 6-month total return performance of the leading decliners and XLI:
Headhunting group (NASDAQ:HHR) -10.15%. The Russian online recruitment platform was in the red this week after topping the rankings two weeks ago. Wall Street analyst rating is Strong Buy with an average price target of $65.69. YTD, the stock is down -18.40%.
Hayward Holdings (NYSE:HAYW) -7.98%. The pool equipment maker found itself among the worst decliners after two weeks. Since the beginning of the year, the title has fallen -32.25%.
Upwork (NASDAQ:UPWK) -7.15%. The online talent market fell the most on February 11 (-9.29%) the day after it released its fourth quarter results on Feb. 10 after the market. The company beat revenue estimates while its non-GAAP EPS was in line with consensus estimates.