{"id":604204,"date":"2023-08-27T00:00:00","date_gmt":"2023-08-27T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/inside_industry\/industrial-stocks-are-mostly-doing-well-and-match-their-financial-performance\/"},"modified":"2023-08-27T00:00:00","modified_gmt":"2023-08-27T00:00:00","slug":"industrial-stocks-are-mostly-doing-well-and-match-their-financial-performance","status":"publish","type":"inside_industry","link":"https:\/\/enterpriseam.com\/egypt\/inside_industry\/industrial-stocks-are-mostly-doing-well-and-match-their-financial-performance\/","title":{"rendered":"Industrial stocks are mostly doing well \u2014 and match their financial performance"},"content":{"rendered":"

What a difference a year makes: <\/strong> Industrial players are broadly seeing strong stock performances this year, although that momentum has lost a little bit of steam since the beginning of the second quarter. On both a year-to-date basis and when looking at the past five months (starting from 2Q 2023), most major industrial companies are in the green, and some are significantly outperforming the EGX30 this year so far. <\/p>\n

Finally, it appears that share performances and earnings are actually on the same <\/strong> wavelength: <\/strong> All industrial companies \u2014 with the exception of Rameda Pharma \u2014 reported strong earnings during the second quarter of the year, even amid macroeconomic conditions of rising inflation and a persistent FX shortage. These companies\u2019 financial performance is being reflected in their stock performance, with the general trajectory moving in the same direction. <\/p>\n

WHERE WE WERE A YEAR AGO- <\/strong> In 2Q 2022, industrial stocks were continuing on a downward trajectory that had begun at the outset of the year, with only one EGX-listed major industrial company in the green as of September 2022. With most of these stocks falling throughout 2022, they were underperforming the EGX30, which had a YTD return of -13.3% and 5M return of -10.46% as of the beginning of September<\/a>.<\/p>\n

WHAT HAS HAPPENED SINCE- <\/strong> Successive devaluations of the EGP over the past several months made equities on the EGX significantly more attractively priced. <\/p>\n

For the purpose of this analysis, we\u2019ll look at the performance of a handful of <\/strong> heavyweight EGX30 stocks <\/strong> on a YTD basis and from the beginning of 2Q 2023 until now: GB Corp, Oriental Weavers, Elsewedy Electric, and Rameda Pharma.<\/p>\n

Almost all the companies are outperforming the EGX30 on a YTD basis<\/strong>, although the comparison is more mixed when looking at the five-month period beginning in 2Q 2023, according to market data. The EGX30\u2019s YTD return is 26.8%, while its 5M return is 10.9%.<\/p>\n