Ethereum (ETH) is the world’s second-largest cryptocurrency by market capitalization. However, ETH is down by 35% from the all-time high of $4,878 it hit on November 10, 2021, due to the crypto market crash. Moreover, ETH has lost more than 14% of its value since the beginning of the new year. As regulators strive to impose new rules to govern cryptocurrencies trades, ETH might decline further in the near term.
On the contrary, the U.S. Industrial production rose 5.3 % year-over-year in November 2021. Moreover, with several federal initiatives, the industrial sector is projected to witness a bullish trend in the near future. Investors’ interest in the industrial space is evident from the Industrial Select Sector SPDR Fund’s (XLI) 6.5% returns in the past three months.
Established industrial stocks Avis Budget Group, Inc. (CAR), Veritiv Corporation (VRTV), and AeroCentury Corp. (ACY) outperformed Ethereum last year. Let’s take a closer look.
Avis Budget Group, Inc. (CAR)
CAR, together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary services to businesses and consumers. The company operates in approximately 10,600 locations worldwide.
On November 1, 2021, Joe Ferraro, CAR CEO, said, “We are seeing the benefits of initiatives we began during the early days of the pandemic and look to build on this positive momentum as the travel environment continues to normalize.”
CAR’s revenues came in at $3 billion for the third quarter ended September 30, 2021, up 95.6% year-over-year. Its adjusted net income came in at $693 million, up 777.2% year-over-year, while its adjusted EPS came in at $10.74, up 850.4% year-over-year. Moreover, its adjusted EBITDA increased 380.5% year-over-year to $1.06 billion.
For fiscal 2021, analysts expect CAR’s revenue to be $9.13 billion, representing a 69% year-over-year rise. In addition, the company’s EPS is expected to increase 459.1% year-over-year to $22.3 in fiscal 2021. Also, it surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 412.2% to close yesterday’s trading session at $191.92.
CAR’s POWR Ratings reflect this promising outlook. The POWR Ratings assess stocks by 118 different factors, each with its weighting. The stock has an A grade for Growth and a B grade for Quality. Within the B-Rated Auto Dealers & Rentals industry, it is ranked #16 out of 26 stocks. Click here to see the additional POWR Ratings for Momentum, Stability, Sentiment, Value for CAR.
Veritiv Corporation (VRTV)
VRTV operates as a business-to-business provider of value-added packaging products and services and facility solutions, print, and publishing products and services in the United States, Canada, Mexico, and internationally. Its segments are: the Packaging segment; the Facility Solutions segment; the Print segment, and the Publishing segment.
On November 3, 2021, Sal Abbate, CEO, said, “The ongoing benefits of our 2020 Restructuring Plan, as well as commercial and supply chain productivity, drove significant financial improvement throughout the business resulting in net income nearly doubling in the third quarter compared to the prior year.”
VRTV’s net sales increased 11.1% year-over-year to $1.77 billion for the third quarter ended September 30, 2021. Its net income came in at $40 million, up 89.6% year-over-year, and its EPS came in at $2.54, up 95.4% year-over-year.
For fiscal 2021, VRTV’s revenue and EPS are expected to grow 5.7% and 287% year-over-year to $6.7 billion and $8.05, respectively. In addition, it surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 357.3% to close yesterday’s session at $103.98.
It’s no surprise that VRTV has an overall A rating, which equates to a Strong Buy in our POWR Rating system. In addition, it has an A grade for Growth and Sentiment and a B grade for Value. VRTV is ranked #2 of 23 stocks in the B-Rated Industrial – Packaging industry. Click here to see the additional POWR Ratings for VRTV (Momentum, Stability, and Quality).
AeroCentury Corp. (ACY)
Together with its subsidiaries, ACY provides leasing and finance services to regional airlines worldwide. The company primarily engages in leasing its aircraft portfolio consisting of mid-life regional aircraft through operating and finance leases.
On November 19, 2021, Yucheng Hu, the Company’s Chief Executive Officer, said: “After the completion of the Company’s reorganization, we look forward to continuing to enjoy a portion of the growth and development of the Company’s legacy aircraft leasing business through our majority stake in the Company’s previously wholly-owned subsidiary, JetFleet Holding Corp., but we will also be opportunistic and look for additional growth investments in the future to diversify our revenue streams and potentially high growth earnings to our shareholders.”
ACY’s net income came in at $27.51 million for the third quarter ended September 29, 2021, compared to a loss of $4.08 million in the year-ago period. Its EPS came in at $17.79, compared to a loss of $2.64 in the previous period. Also, its total operating expenses came in at $2.72 million, down 61% year-over-year.
Over the past year, the stock has gained 475.1% to close yesterday’s trading session at $9.33.
ACY’s strong fundamentals are reflected in its POWR ratings. The stock has a grade of B for Quality. It is ranked #76 of 90 in the B-Rated Industrial – Services industry. Click here to see the additional POWR Ratings for ACY (Momentum, Growth, Value, Stability, Sentiment).
CAR shares were trading at $193.25 per share on Friday afternoon, up $1.33 (+0.69%). Year-to-date, CAR has declined -6.81%, versus a -2.63% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master’s degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More…