Plug Power rises to top industrial gainer, while shipping stocks anchor among losers

Panuwat Dangsungnoen

Power and energy-related stocks were among the main gainers in the week ending July 8, while shipping stocks topped the list of decliners amid looming recession fears as that Federal Reserve policymakers are considering a 75 basis point rate hike. at their next meeting to fight inflation.

The SPDR S&P 500 Trust ETF (SPY) was back among the gains (+3.03%) after being in the red a week ago. Since the start of the year, the ETF has been -18.17%. The Industrial Select Sector SPDR (XLI) was also in the green (+0.65%), after falling the previous week. Since the start of the year, XLI has been -16.92%.

The top five gainers in the industrials sector (stocks with a market capitalization of over $2 billion) all gained more than +14% everyone this week. However, since the start of the year, these five stocks have been in the red.

Plug hole (NASDAQ:PLUG) +19.31% reclaimed the top spot after two weeks. The stock gained throughout the week, but especially on July 7 (+7.83%) as solar and clean energy stocks rallied amid US government plans to lift restrictions. tariffs on Canadian solar products and China considering a $220 billion stimulus package to stimulate its economy.

However, year-to-date, shares of the Latham, New York-based company are down. -29.97%. The SA’s quantitative rating on the stock is Sell, which takes into account factors such as growth and profitability, among other things. The rating contrasts with Wall Street’s average analyst buy rating, in which 14 out of 28 analysts give the stock a strong buy rating.

Upward Work (UPWK) +17.26% seemed to mirror Plug’s stock performance as it came in second, like two weeks ago. The Santa Clara, Calif.-based company, which provides an online job marketplace, was also among the top five winners (in this segment) in June. However, since the beginning of the year, the title has lost -29.01%. The SA quantitative rating on the stock is Hold, with profitability having a factor rating of D+ while valuation with a factor rating of F. But the average Wall Street analyst rating differs and gives the shares a buy rating, with an average price target of $32.18. .

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

Ballard Power Systems (BLDP) +16.03%. The Canadian fuel cell systems developer was among the stocks that gained on July 7 (+9.88%) with the Canada-US agreement on the elimination of customs duties on Canadian solar products. Shares were also helped by a report that solar and wind installations in the United States generated more electricity than nuclear plants for the first time in April. Since the beginning of the year, Ballard has refused -41.80%, the most among the top five winners this week. The average Wall Street analyst rating for BLDP is Hold, where 13 out of 23 analysts backed the stock as Hold. The rating contrasts with the Quantitative Rating SA of Selling, with Valuation getting a factor rating of C and Profitability with a factor rating of D-.

Frontier Group (ULCC) +14.73%. At the weekend, Frontier suffered a setback as Spirit Airlines (SAVE) postponed a shareholder vote for its acquisition by the company so it had more time to pursue discussions with JetBlue (JBLU). SA contributor Dhierin Bechai wrote: Looking only at the value of the offers from a total and cash perspective, the Frontier offer is unattractive at best. The average Wall Street analyst rating on ULCC is Strong Buy, with an average target price of $16.86, contradicting the SA Quant Rating of Hold. Since the start of the year, Frontier stock has lost -20.78%.

Bloom Energy (BE) +14.55%. Bloom, based in San Jose, Calif., which provides a power generation platform, also took advantage of the proposed removal of Canadian tariffs on solar products. The stock also saw Northland initiating coverage with an outperform rating calling the company “at an inflection stage” and positioning itself strongly to utilize its solid oxide platform. Year-to-date, BE is down -13.82%, but the average Wall Street analyst rating is long, while the SA quantitative rating is maintained.

This week’s top five declines among industrial stocks (market cap over $2 billion) all lost more than -5% each. Since the beginning of the year, only one out of these five is in the green.

Golden Ocean (NASDAQ: GOGL) -10.48% led decliners tracked by peer shippers Star Bulk Carriers (SBLK) -10.12% and ZIM Integrated Shipping (ZIM) -5.67%, which took second and third place respectively, amid growing recession fears. According to an analysis by the German economic institute IfW, more than 2% of global freight capacity is at a standstill in the North Sea as a drop in Red Sea freight volumes in June affected European trade.

“Overall, global trade is showing a slightly positive trend in June, but significant congestion, high transportation costs and resulting supply chain issues are holding back the exchange of goods,” Vincent said. Stamer, responsible for Kiel Trade Indicator.

Stamer, however, added that the situation in North America was improving. “The strong growth in demand for consumer goods induced by the pandemic has slowed and congestion off the Port of Los Angeles has dissolved,” Stamer noted.

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

Bermuda-based GOGL had a relatively better first half compared to the broader market and some industrial stocks (in this segment). The title was among the top five winners (in this segment) in the first half (+29.48%). The SA Quant rating on GOGL is a strong buy, with both profitability and valuation having an A+ factor rating. Meanwhile, the average Wall Street analyst rating is buy. Year-to-date, the stock is the only one among this week’s declines to be in the green.

Star Bulk – which was among the top five industrial stocks of 2021 (in this segment) was also back among the losers with GOGL after two weeks. Both the SA Quant rating and the average Wall Street analyst rating on SBLK are Strong Buy. Since the beginning of the year, SBLK has been -0.93%.

Since the beginning of the year, ZIM has decreased -24.31% but earns a strong buy SA quantitative rating, which contrasts with Wall Street analysts’ average hold rating.

ESAB (ESAB) -5.67%. The North Bethesda, Md.-based welding products maker took fourth place among decliners. Since the beginning of the year, the title has fallen -16.68% but the average Wall Street analyst rating is Buy with an average price target of $57.67.

Brady (BRC) -4.34%. The Milwaukee, Wis.-based company that makes workplace safety products saw its shares drop -16.16% YTD. SA Quant Rating on BRC is a Hold, which contrasts with the average buy rating from Wall Street analysts.

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