China’s Kanzhun is the top industrial gainer, as airline stocks pile up on the list of losers

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Kanzhun took the top spot among the gainers, continuing its sawtooth trend, while airline stocks filled almost the entire list of decliners due to concerns over fuel jet prices, among other things.

For the week ending in June 3, the SPDR S&P 500 Trust ETF (TO SPY) has been (+1.29%) in the green for the second week right after a 7 week losing streak. However, since the beginning of the year, the ETF is still in the red. The Select Industrial Sector SPDR (XLI) also won (+2.41%) for the second consecutive week, which preceded two consecutive weeks of losses. Since the start of the year, XLI has been -9.70%.

The top five gainers in the industrials sector (stocks with a market capitalization of over $2 billion) all gained more than +13% each. However, since the beginning of the year, only two of these five titles are in the green.

Kanzhun (NASDAQ: BZ) +21.78% continued to show its volatile nature, with the stock being among the winners this week. The Chinese online recruitment platform gained the most on June 2 (+10.88%). Shares of some China-based companies edged higher earlier this month as lockdown restrictions began to ease in parts of China. However, Kanzhun stock has had its ups and downs over the past few months. It was among the decliners about a month ago, having peaked a week earlier. Similar trends were seen in March for equities. Since the beginning of the year, the title has fallen -38.13%but the Wall Street analyst rating is Buy with an average price target of $37.91.

RBC Bearings (ROLL) +17.64%. Shares of the Oxford, Connecticut-based company made the winners list again, making it two in a row. Last week, the stock benefited from its earnings performance. The Wall Street analyst rating is Buy with an average price target of $223.17. Since the beginning of the year, the stock is -1.42%.

LegalZoom.com (LZ) +15.13%. The Glendale, Calif.-based company, which provides an online platform for legal and compliance solutions, saw its shares drop -14.75% YTD. SA contributor Daniel Jones wrote over a week ago, LegalZoom: Expect continued pressure. He said: “In the short term, I fully suspect that this pressure will continue. But despite trading at a high multiple, I think the company is a valid ‘holding’ prospect at this time.

The graph below shows the 6-month price-yield performance of the top five winners and the SP500TR:

WESCO International (WCC) +13.59% The Pittsburgh-based logistics and supply chain solutions provider is the only company besides CAE among this week’s top gainers whose stock is in the green. Since the beginning of the year, the title has increased +5.34%. The SA quantitative rating on the stock is a strong buy.

EAC (EAC) +13.34%. The stock rose the most during the day (June 1 +7.69%) following its 4th quarter results on May 31 after trading. The Canadian company, which provides flight simulation equipment and training solutions, saw its revenue increase by around 7% year-on-year to C$955 million. Since the start of the year, stocks have risen +6.70%.

This week’s top five declines among industrial stocks (market cap over $2 billion) all lost more than -3% each. Year-to-date, all of these stocks except UAL have been in the red.

Airline stocks fell in unison on June 1 as optimism about summer travel demand was overshadowed by rising jet fuel prices and continued labor shortages.

American Airlines (NASDAQ: AAL) -5.92%. At the end of the week (June 3), the stock fell again. AAL said it saw revenue increase in the second quarter compared to the second quarter of 2019, but tightened its capacity forecast. Since the beginning of the year, the title has fallen -9.69%.

Delta Air Lines (DAL) -5.61%. The stock fell the most on June 1 (-6.23%). Separately, Delta CEO Ed Bastian said the company is trying to strike a deal with Boeing for the 737 MAX jets. Since the beginning of the year, the stock is -1.38% but Wall Street analysts’ rating is a strong buy with an average price target of 54.95%.

Ryanair (RYAAY) -3.99%. Ireland-based airlines said on June 2 that May traffic rose 8% sequentially, leading to an uptick in stock that day, which for the rest of the week was in the red. Since the beginning of the year, the stock has lost -16.50%.

The chart below shows the 6-month price-yield performance of the five worst declines and XLI:

Stanley Black & Decker (SWK) -3.92%. Shares of the New Britain, Connecticut-based company fell the most on June 1 (-3.36%) after announcing the promotion of its chief financial officer to CEO and reaffirming its outlook for the financial year 22. Baird, however, noted that the company was attractive despite its senior ranks being shuffled. Since the beginning of the year, the title has fallen -39.28%, the most among the five losers this week. The SA Quant rating is Sell on Stock.

United Airlines (UAL) -3.56% concluded the five worst denials of the week and marketed the fourth airline on the list. However, since the beginning of the year, it is the only title among these five which is still in the green. +1.48%. The Wall Street analyst rating is Buy with an average price target of $60.88.

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