System1 races for top industry winner, while Matson sinks to pick the No. 1 loser tag

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While specialty businesses and aerospace and defense companies made up the majority of the top five industry winners for the week ending April 8, shipping and airline companies filled the list of decliners.

The SPDR S&P 500 Trust ETF (SPY) -1.18% was in the red after being in the green for three consecutive weeks. Since the start of the year, the ETF has been -5.77%. Less than half of the 11 S&P 500 sectors posted gains for the week. SPDR Select Industrial Sector (XLI) -2.52% was in the red for the second consecutive week. Since the start of the year, XLI has been -5.87%.

The top five gainers in the industrials sector (stocks with a market capitalization of over $2 billion) all gained more than +4% each.

System1 (NYSE: SST) +50.97. The global marketing research and effectiveness company released its fourth quarter results earlier this week with revenue up +48.4%Y/Y. However, the company’s shares rose the most on April 7 (+34.32%) a few days after the fourth quarter results. The company expects 2022 revenue to reach $1 billion, with adjusted EBITDA of $174 million. Since the beginning of the year, the stock is on the rise +133.73%.

Spirit Airlines (SAVE) +19.21%. Spirit based in Miramar, Florida, increased on April 5 (+22.42%) after JetBlue (JBLU) offered $3.6 billion, or $33/share for the airline. Spirit said it planned to start talks with JetBlue after it felt the offer could likely lead to a “superior proposition” over Frontier’s stock and cash deal.

The chart below shows the 6-month total return performance of the top five winners and SPY:

Aerospace and Defense Companies AeroVironment (AVAV) +9.34% Aerojet Rocketdyne (AJRD) +4.70%, came third and fourth respectively. Arlington, Va.-based drone maker AeroVironment has increased +66.19% YTD. The rating from Wall Street analysts is buy.

Pink Aerojet +7.72% on April 7 after JP Morgan upgraded shares from Neutral to Overweight with a price target of $49, down from $40, citing attractive valuation, a net cash position that leaves room to return capital to shareholders and the potential to be eventually acquired.

ABM Industries (ABM) +4.36% finished top five winners. The company has completed the acquisition of Irish company Momentum Support in an all-cash transaction.

This week’s top five declines among industrial stocks (market cap over $2 billion) all lost more than -18% each. Since the beginning of the year, all stocks have been in the red.

Matson (NYSE:MATX) -24.65%. On April 4, the Baltic Exchange Dry Bulk Sea Freight Index fell for the eighth session in a row, with daily rates lower across all vessel segments. The Hawaii-based shipping company, which was the top industry gainer more than a month ago, lost the most on April 4 (-11.51%). The Wall Street analyst rating is Buy with an average price target of $118.

Atlas Air Worldwide (AAWW) -19.67%. Atlas fell throughout the week but especially on April 5 (-10.17%) after Wolfe Research analyst Scott Group downgraded the aviation operations services provider to Underperform from Peer Perform with a price target of $73. YTD, the stock is down -29.83%.

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

JetBlue Airways (JBLU) -19.59% was unlucky as its acquisition was aimed at Spirit Airlines and lost throughout the week. Spirit’s lawsuit by JetBlue has raised some questions, Bank of America worries, that “1) how much would it cost to upgrade SAVE’s 175-plane fleet to JBLU product, 2) how do they present a case to regulators, 3) ) how do you bring the SAVE client to the JBLU network at low cost, and 4) plans to reduce leverage after the potential deal.”

ZIM Integrated Shipping (ZIM) -19.05% was back among the decliners after two weeks. However, the Israeli shipping company won +102.73% over the past year. The Wall Street analyst rating is Buy with an average price target of $85.3.

Joby Aviation (JOBY) -18.55%. Shares of the air taxi company lost consistently throughout the week. YTD, the stock is down -27.81%. The company was among the top decliners two weeks in a row in January.

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