Union Pacific leads industrials this week, while Axon Enterprise trails

The Industrial Select Sector SPDR Fund ETF (NYSEARCA:XLI) closed 0.90% higher this week. On a year-to-date basis, XLI has been slightly ahead of the broader markets, gaining 15.80% compared to the S&P500’s 12.96% returns.

Weekly top 5 gainers

Union Pacific (NYSE:UNP) gained the most this week, with shares +6.61% after Donald Trump supported UNP’s planned $72B acquisition of rival railroad operator Norfolk Southern (NYSE:NSC).

Norfolk Southern (NYSE:NSC) also gained +4.86% following the announcement, becoming the second top gainer among industrial stocks.

Quanta Services (NYSE:PWR) was up 4.34% after Jefferies raised its rating on the company to Buy from Hold, pointing to its ability to tap a larger addressable market, driven mainly by expansion into data center opportunities.

Westinghouse Air Brake Technologies (NYSE:WAB) was +4.22% as Citi initiated coverage of the firm with a Buy recommendation, citing expectations of rising demand from railroad operators. The company also secured a $4.2B multiyear agreement to supply locomotives and long-term maintenance services to Kazakhstan’s state railway.

Northrop Grumman (NYSE:NOC) ended +3.75% after a report said it was in line to win a €1.2 billion ($1.41 billion) contract from Germany to equip its Eurofighter jets.

Weekly top 5 losers

Axon Enterprise (NASDAQ:AXON) lost the most this week, with its shares -8.48%. The company announced its plans to acquire Prepared this week. Piper Sandler also initiated coverage on the firm with an Overweight rating during the week.

United Airlines (NASDAQ:UAL) was -7.90% after its flights were grounded by the FAA, citing an equipment/technology issue.

Generac Holdings (NYSE:GNRC) was -7.69%.

Builders FirstSource (NYSE:BLDR) -4.79%.

Delta Air Lines (NYSE:DAL) ended -4.28%. The company announced a quarterly dividend of $0.1875/share in the week.

ETFs to tab the industrial sector include: (NYSEARCA:XLI), (VIS), (XAR), (EXI), (PSCI), (PRN), (FIDU).

Leave a Reply

Your email address will not be published. Required fields are marked *