M&A talk drives Arconic to top industrial gainer of week, earnings weigh down Ameresco

The week ending March 3 saw the Industrial Select Sector among gains (XLI) (+3.35%). ISM Manufacturing improved marginally in February, though less than forecasted. Meanwhile, PMI Manufacturing came below consensus for February.

XLI was among the 9, out of the 11 S&P 500 sectors, which closed the week in green. The SPDR S&P 500 Trust ETF (SPY) also gained this week (+1.97%), amid comments from a Federal Reserve official on Thursday which were perceived as dovish. The positive tone of the market continued on Friday.

The top five gainers in the industrial sector (stocks with a market cap of over $2B) all gained more than +13% each this week.

Arconic (NYSE:ARNC) +24.60%. The stock surged +19.48% on Tuesday on a report that private equity firm Apollo Global was in discussions to acquire the aerospace-parts maker. Earlier on Tuesday, the Pittsburgh, Pa-based aluminum products maker was downgraded to Sell at Goldman Sachs on uncertain demand in Europe and delays in projects.

ARNC has a SA Quant Rating — which takes into account factors such as Momentum, Profitability, and Valuation among others — of Hold. The stock had a factor grade of C- for Profitability and C+ for Growth. The rating is in contrast to the average Wall Street Analysts' Rating of Buy, wherein 2 out of 4 analysts see the stock as Strong Buy.

Dycom Industries (DY) +18.83%. Dycon's Q4 results, which beat analysts estimates, sent the stock soaring on Wednesday (+15.21%). The SA Quant Rating on DY is Buy, with a score of A for Growth B- for Valuation. The average Wall Street Analysts' Rating is Strong Buy rating, wherein 6 out of 7 analysts view the stock as such.

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

AAON (AAON) +15.28%. The Tulsa, Okla.-based air conditioning and heating products maker saw its stock rise on Tuesday (+11.62%) after Q4 EPS and revenue surpassed analysts expectations.

The SA Quant Rating on AAON is Hold, with a factor grade of A+ for Momentum but F for Valuation. Meanwhile, the average Wall Street Analysts' Rating is Buy, wherein 2 out of 4 analysts tag the stock as Strong Buy.

Axon Enterprise (AXON) +14.16%. The Taser maker's stock climbed on Wednesday (+10.36%) after fourth quarter results exceeded consensus. However, on Thursday Axon was downgraded to Neutral at JPMorgan noting that the shares have become expensive after surging more than 30% YTD. The average Wall Street Analysts' Rating on AXON is Buy, while the SA Quant Rating is Hold.

Air Transport Services Group (ATSG) +13.45%. The Wilmington, Ohio-based company pared off losses from the prior week following its quarterly results on Feb. 24 which sent the stock tumbling down (-18.80%). The SA Quant Rating on ATSG is Sell, which is in start contrast to the average Wall Street Analysts' Rating of Strong Buy.

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

Ameresco (NYSE:AMRC) -9%. The energy efficiency solutions provider's stock slumped on Tuesday (-15.15%) after Q4 results missed analysts expectations. The company also announced an agreement to acquire Enerqos Energy Solutions.

The SA Quant Rating on AMRC is Hold, with a factor grade of A- for Growth but D for Profitability. The average Wall Street Analysts' Rating differs with a Strong Buy rating, wherein 10 out of 13 analysts see the stock as such.

ZIM Integrated Shipping Services (ZIM) -6.55%. The Israeli shipping company's stock dipped the most on Thursday (-5.26%). However, YTD, the shares have risen +30.37%. SA contributor Bohdan Kucheriavyi writes, ZIM Integrated: This Is The Inflection Point.

The SA Quant Rating on ZIM is Hold, with a score of D- for Momentum and A+ for Valuation. The average Wall Street Analysts' Rating agrees with a Hold rating of its own, wherein 3 out of 7 analysts see the stock as such.

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

Star Bulk Carriers (SBLK) -3.46%. Zim's shipping peer, Star Bulk also saw its shares fall on most on Thursday (-3.74%). YTD the stock has gained +23.40%. The SA Quant Rating on SBLK is Hold, with a score of A+ for Profitability but F for Growth. The average Wall Street Analysts' Rating completely differs with a Strong Buy rating, wherein 5 out of 6 analysts see the stock as Strong Buy.

McGrath RentCorp (MGRC) -3.37%. On Thursday the Livermore, Calif.-based company said it acquired the assets of Colorado-based Brekke Storage. The SA Quant Rating on MGRC is Hold, while average Wall Street Analysts' Rating is Strong Buy ( 2 out of 2 analysts).

ADT (ADT) -3.16%. The security and smart home solutions provider saw its stock dip on Tuesday (-4.07%) despite a Q4 revenue beat. The SA Quant Rating on ADT is Hold, which is in contrast to the average Wall Street Analysts' rating of Buy.