Our top scoring large cap stocks from 1 year ago produced an average 325 bps of excess return to the S&P 500 over the past year. The best performers from a year ago (5/14/2013) are NOC up 57%, EA up 57%, WFT up 57%, MGA up 55%, and SWY up 55%.

• The best large cap sector is utilities.
• The top large cap industry is aerospace/defense

The average large cap score is 59.35, above the four week moving average score of 58.46. The average large cap stock is trading -10% below its 52 week high, 3.11% above its 200 dma, has 3.87 days to cover held short, and is expected to grow EPS by 13.5% next year.
 
Utilities remain the best scoring sector; however, we're starting to see other sectors rotate. Industrials, healthcare, basics, and consumer all score above average this week.  Financials, technology, and services score below average.

Aerospace/defense (GD, TDG, NOC, SPR, RTN, BEAV, BA) is the top scoring large cap industry heading into summer air show order season. Pipelines (SE, WMB) score high and benefit from increased shale production. REITs (AVB, SLG, ESS, CPT, VNO, PSA) benefit from low interest rate capacity additions, improving vacancy rates (office), and solid effective rents. Beverages (STZ, MNST, DPS, BF.B) tend to trade higher heading into summer peak demand. Cigarettes (LO, RAI, MO) offer upside as managers tend to de-risk into summer.

In large cap basics, buy pipelines, major chemicals (EMN, SHW, ASH), and independent oil & gas (CHK, EOG, ECA). In consumer goods, focus on beverages, cigarettes, and processed & packaged foods (K, GMCR, CPB, MJN). In financials, the best industries include REITs, credit services (SLM, MCO, DFS, COF), and P&C insurers (AIG, WRB, XL, TRV, PRE). P&C insurers tend to post solid returns through the summer hurricane season. In healthcare, the best scoring groups include healthcare plans (HUM, CI, WLP, AET), drugmakers (JNJ, LLY, ENDP, UTHR, ALXN, NVS), and medical appliances (EW, ZMH, RMD, MDT). Medicaid expansion is significantly boosting revenue for private Medicaid insurers. Every industrial goods basket scores above average this week, led by aerospace/defense, diversified machinery (DOV, CMI, ITW, XYL), and industrial equipment (ROP, PNR).  The top services industries are drug stores (CVS, RAD), railroads (UNP, NSC, CSX), and grocers (KR). In technology, concentrate on domestic telecom (CTL, T), diversified communication (AMT), and semi ICs (TSM, SKWS, MRVL).