Air taxi maker Joby top industrial stock gainer of week, while defense stocks slump

The Industrial Select Sector SPDR (XLI) finished the week ending Jan. 13 in the green (+1.54%). XLI was among the nine, out of the 11 S&P 500 sectors, which closed the week in gains.

Air taxi maker Joby led the industrial gainers (in our segment) airline and power related stock rounded up the top five. Defense stock however took a beating and formed the majority of the worst performing industrial stocks (in our segment) for the week.

Meanwhile, the SPDR S&P 500 Trust ETF (SPY) rose +2.69% for the week with better show on Thursday and Friday amid the Consumer Price Index report which came in as expected.

The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +20% each this week.

Joby Aviation (NYSE:JOBY) +24.93%. The Santa Cruz, Calif.-based electric air taxi maker saw its stock rise throughout the week, with the most on Thursday (+8.56%). JOBY has an SA Quant Rating — which takes into account factors such as Momentum, Profitability, and Valuation among others — of Hold.

The stock has factor grade of D for Profitability and B- for Growth. The average Wall Street Analysts’ Rating differs with a Buy rating, wherein 4 see it as Hold and 1 each as Buy and Strong Buy, respectively.

Plug Power (PLUG) +22.97%. The Latham, New York-based company extended its gains for the week on Thursday after announcing the completion of its new 407K sq. ft. fuel cell manufacturing facility in New York.

The SA Quant Rating on PLUG is Sell, with a score of D- for Momentum and C+ for Valuation. The average Wall Street Analysts’ Rating differs completely with a Buy rating, wherein 16 out of 31 analysts view the stock as Strong Buy.

The chart below shows past 6-month price-return performance of the top five gainers and SP500:

United Airlines (UAL) +22.28%. An outage for a key computer system operated by the FAA caused flights across the US to be grounded on Wednesday but some airline stocks soared during the week. While peer Delta Air Lines stock dipped following its Q1 results, UAL is scheduled to report its earnings this coming Tuesday. However, Delta CEO Ed Bastian was upbeat about demand in the airline travel arena.

The SA Quant Rating on UAL is Strong Buy, with a score of A both for Profitability and Momentum. The average Wall Street Analysts’ Rating on the stock is Buy, wherein 7 out of 21 analysts tag the stock as Strong Buy.

Bloom Energy (BE) +21.76%. The San Jose, Calif.-based company’s stock rose the most on Tuesday (+10.61%) after Morgan Stanley upgraded the shares to Overweight from Equal Weight, as the Inflation Reduction Act and the expected easing of supply chains in battery storage provide a path to profitability in 2023.

BE has SA Quant Rating of Hold, which is in contrast to the average Wall Street Analysts’ Rating of Buy.

American Airlines (AAL) +20.03%. The company’s stock surged on Thursday after significantly raising Q4 expectations in an investor update. CEO Robert Isom attributed the firm’s better-than-expected results to “strong demand” among travelers. The SA Quant Rating of on the shares is Strong Buy, while the average Wall Street Analysts’ Rating on AAL is Hold.

This week’s top five decliners among industrial stocks (market cap of over $2B) all lost more than -3% each.

Northrop Grumman (NYSE:NOC) -11.51%. The Falls Church, Va.-based aero-defense company was among certain defense stocks that tumbled on Friday after Goldman Sachs downgraded their shares. NOC was cut to Sell from Neutral on its current valuation and possibility of pressures on the U.S. defense budget.

The SA Quant Rating on NOC Hold, with factor grade of A for Profitability but F for Growth. The average Wall Street Analysts’ Rating differs with a Buy rating, wherein 8 out of 20 analysts view the stock as Strong Buy.

Booz Allen Hamilton (BAH) -7.68%. The McLean, Va.-based consulting company’s shares dipped the most at the start of the week on Monday (-6.05%). The SA Quant Rating on BAH is Hold, with a score of C+ for Momentum and D for Valuation. The rating is in contrast to the average Wall Street Analysts’ Rating of Buy, wherein 5 out of 13 analysts tag the stock as Strong Buy.

The chart below shows past 6-month price-return performance of the worst five decliners and XLI:

Lockheed Martin (LMT) -4.95%. Goldman Sachs downgraded the defense contractor’s stock to Sell from Neutral on the company’s limited ability to buy back shares. The SA Quant Rating on LMT is Hold, with a score of A+ for Profitability but F for Growth. The average Wall Street Analysts’ Rating agrees with a Hold rating of its own, wherein 11 out of 22 analysts see the stock as such.

L3Harris Technologies (LHX) -4.37%. Melbourne, Fla.-based aero-defense company has an SA Quant Rating of Hold, which is in contrast to the average Wall Street Analysts’ Rating of Buy.

GFL Environmental (GFL) -3.96%. The shares of the Canadian waste management company have an SA Quant Rating of Hold, which differs with the average Wall Street Analysts’ Rating of Buy.