Economic Landscape in Industrial Sector
For the week ended Aug. 9, the Industrial Select Sector SPDR Fund ETF (XLI) surged +1.26%, outperforming the SPDR S&P 500 Trust ETF (SPY) that saw a modest increase of +0.02%.
Pivotal Role of Earnings
Earnings once again proved to be the decisive factor this week, propelling Axon to the top of industrial gainers while dragging Atkore down as the leading decliner. Year-to-date, XLI has advanced +9.03%, while SPY has risen +12.14%.
Top Performers in the Industrial Sector
The five top gainers in the industrial sector (market cap over $2B) witnessed a significant surge of over +9% each this week, with 4 out of the 5 stocks showing positive growth YTD.
Axon Enterprise Dominates
Axon Enterprise (NASDAQ: AXON) stole the limelight, recording a remarkable +24.85% jump. The stock soared +18.39% post their second-quarter results beat expectations, with a promising full-year revenue outlook, resulting in a YTD increase of +41.29%.
Embraer Skyrockets
Embraer (ERJ) witnessed a substantial +13.20% climb following its exceptional second-quarter results, with a YTD growth of +69.21%.
Rocket Lab USA’s Ascent
Rocket Lab USA (RKLB) saw a noteworthy +11.64% increase after reporting record quarterly revenues, although its YTD performance stood at -2.89%.
Parker-Hannifin’s Surge
Parker-Hannifin (PH) experienced a robust +9.89% boost after surpassing estimates in their fiscal fourth-quarter results, bringing its YTD growth to +23.68%.
AECOM’s Rise
AECOM (ACM) showcased solid growth, with its shares rising +9.50% post quarterly results that surpassed estimates, leading to a YTD increase of +4.49%.
Top Five Decliners
Conversely, the top five decliners in the industrial sector, all with a market cap of over $2B, experienced significant losses exceeding -12% each this week, with a majority in the negative YTD territory.
Atkore’s Disappointing Performance
Atkore (NYSE: ATKR) plummeted by -22.34% this week after its fiscal third-quarter results fell short of estimates, resulting in an alarming YTD decline of -40.70%.
Trex’s Negative Turn
Trex (TREX) witnessed a substantial -21.43% drop following mixed second-quarter results and a revised downward revenue guidance for 2024, leading to a YTD decline of -26.68%.
Challenges Faced by TopBuild
TopBuild (BLD) faced a tough week, with a -14.47% decline post second-quarter results missing expectations, contributing to a YTD performance of -0.41%.
Griffon’s Setback
Griffon (GFF) encountered obstacles with a -7.47% decline after quarterly results missed estimates, making the YTD performance drop to -3.17%.
Struggles for Advanced Drainage Systems
Advanced Drainage Systems (WMS) faced challenges as its stock plummeted by -12.20% amid disappointing quarterly results. However, the YTD performance still lingers slightly positive at +0.85%.