E.B. Capital Markets' Large Cap Report

By Todd Campbell
Tuesday, December 17, 2013 5:10 PM EDT

The highest scoring names in large cap from 1 year ago (12/18/2012) returned 731 bps more than the S&P 500.  The top performers are DAL up 147%, PXD up 67%, MA up 60%, MCK up 59%, and GM up 57%. 

  • The best large cap sector remains industrial goods
  • The best industry is diversified machinery

The average large cap score is 69.02, below the 4 week MA score of 71.74.  The average large cap is trading 4.33% above its 200 dma, has 4.08 days to cover short, and is expected to generate 12.9% in EPS growth next year.

The best sector in our large cap universe remains industrial goods.  Services and financials also score above average.  Consumer goods and technology score in line.  Healthcare, basics and utilities score below average.



 

LG CAP       12/17/2013 4 Week MA
Company Name Symbol Sector Industry SCORE SCORE
BEST          
Autozone AZO SERVICES AUTO PARTS STORES 110 107.5
Sigma Aldrich SIAL HEALTHCARE SPECIALTY CHEMICALS 110 96.25
Ameriprise Finl Inc AMP FINANCIALS ASSET MANAGEMENT 105 108.75
Continental Resources CLR BASIC MATERIALS OIL & GAS DRILLING & EXPLORATION 105 96.25
Walt Disney Company DIS SERVICES ENTERTAINMENT- DIVERSIFIED 105 107.5
General Motors GM CONSUMER GOODS AUTO MANUFACTURERS- MAJOR 105 105
Ingersoll Rand IR INDUSTRIAL GOODS DIVERSIFIED MACHINERY 105 90
Owens Illinois OI CONSUMER GOODS PACKAGING & CONTAINERS 105 105
Royal Caribbean Cruises RCL SERVICES GENERAL ENTERTAINMENT 105 103.75
U.S. Steel X INDUSTRIAL GOODS METAL FABRICATION 105 97.5
Yahoo YHOO TECHNOLOGY INTERNET INFORMATION PROVIDER 105 105
Amphenol Corp APH TECHNOLOGY DIVERSIFIED ELECTRONICS 100 103.75
Boeing BA INDUSTRIAL GOODS AEROSPACE/DEFENSE  PRODUCTS & SERVICES 100 103.75
Blackrock Inc BLK FINANCIALS ASSET MANAGEMENT 100 98.75
CSX Corp CSX SERVICES RAILROADS 100 103.75
Danaher DHR CONGLOMERATES CONGLOMERATES 100 97.5
Dover Corp DOV INDUSTRIAL GOODS DIVERSIFIED MACHINERY 100 95
Ecolab ECL CONSUMER GOODS CLEANING PRODUCTS 100 96.25
Facebook FB TECHNOLOGY INTERNET INFORMATION PROVIDER 100 98.75
Hyatt Hotels H SERVICES LODGING 100 97.5
Infosys Tech INFY TECHNOLOGY TECHINICAL & SYSTEM SOFTWARE 100 100
Intuit Inc. INTU TECHNOLOGY APPLICATION SOFTWARE 100 98.75
Moody's Corp MCO FINANCIALS CREDIT SERVICES 100 98.75
Nike NKE CONSUMER GOODS TEXTILES 100 103.75
Newell Rubbermaid NWL CONSUMER GOODS HOUSEWARES & ACCESSORIES 100 100
Parker Hannifin PH INDUSTRIAL GOODS INDUSTRIAL EQUIPMENT & COMPONENTS 100 97.5
Adolph Coors Co TAP CONSUMER GOODS BEVERAGES 100 95
Weyerhaeuser Co. WY INDUSTRIAL GOODS LUMBER, WOOD PRODUCTION 100 81.25
Agilent Tech A TECHNOLOGY SCIENTIFIC & TECHNICAL INSTRUMENTS 95 95
Apple Computer AAPL TECHNOLOGY PERSONAL COMPUTERS 95 98.75
AbbVie Inc. ABBV HEALTHCARE DRUG MANUFACTURERS 95 88.75
A C E LTD ACE FINANCIALS PROPERTY & CASUALITY INSURANCE 95 96.25
Adobe Systems ADBE TECHNOLOGY APPLICATION SOFTWARE 95 93.75
Ameritrade AMTD FINANCIALS INVESTMENT BROKERAGE 95 92.5
Aon Corp AON FINANCIALS INSURANCE BROKERS 95 98.75
Clear Channel Outdoor CCO SERVICES MARKETING SERVICES 95 90
C F Industries Hldngs CF BASIC MATERIALS AGRICULTURAL CHEMICALS 95 97.5
Chesapeake Energy CHK BASIC MATERIALS INDEPENDENT OIL & GAS 95 93.75
The Clorox Co CLX CONSUMER GOODS CLEANING PRODUCTS 95 98.75
Comcast CMCSA SERVICES CATV SYSTEMS 95 87.5
Chicago Mercantile Exchange Holdings Inc CME SERVICES BUSINESS SERVICES 95 92.5
Cummins Inc CMI INDUSTRIAL GOODS DIVERSIFIED MACHINERY 95 93.75
Dollar General DG SERVICES DISCOUNT, VARIETY STORES 95 91.25
Eaton Corp ETN INDUSTRIAL GOODS INDUSTRIAL ELECTRICAL EQUIPMENT 95 92.5
Fiserv FISV TECHNOLOGY BUSINESS SOFTWARE & SERVICES 95 93.75
Flowserve Corp FLS INDUSTRIAL GOODS DIVERSIFIED MACHINERY 95 93.75
Hartford Finl Svcs Gro HIG FINANCIALS PROPERTY & CASUALITY INSURANCE 95 93.75
Starwood Hotels and Resorts Worldwide HOT SERVICES LODGING 95 93.75
Hewlett Packard HPQ TECHNOLOGY DIVERSIFIED COMPUTER SYSTEMS 95 96.25
Hitachi Ltd. HTHIY.PK INDUSTRIAL GOODS FARM & CONSTRUCTION MACHINERY 95 93.75
Intercontinental Exchange ICE FINANCIALS BUSINESS SERVICES 95 97.5
J P Morgan JPM FINANCIALS MONEY CENTER BANKS 95 86.25
L3 Communications LLL SERVICES SECURITY & PROTECTION SERVICES 95 93.75
Lincoln Nat'l LNC FINANCIALS LIFE INSURANCE 95 97.5
Lorillard Inc LO CONSUMER GOODS CIGARETTES 95 96.25
Mastercard MA FINANCIALS BUSINESS SERVICES 95 95
Monsanto Co MON BASIC MATERIALS AGRICULTURAL CHEMICALS 95 97.5
Morgan Stanley MS FINANCIALS DIVERSIFIED INVESTMENTS 95 93.75
Noble Energy NBL BASIC MATERIALS INDEPENDENT OIL & GAS 95 80
Nucor Corp NUE BASIC MATERIALS STEEL & IRON 95 96.25
Paychex PAYX SERVICES STAFFING & OUTSOURCING SERVICES 95 97.5
Principal Financial Gr PFG FINANCIALS ASSET MANAGEMENT 95 97.5
Seagate Technology STX TECHNOLOGY DATA STORAGE DEVICES 95 95
Viacom Inc VIAB SERVICES CATV SYSTEMS 95 87.5
Western Digital WDC TECHNOLOGY DATA STORAGE DEVICES 95 95
Wipro Ltd WIT TECHNOLOGY BUSINESS SOFTWARE & SERVICES 95 98.75
Cimarex Energy Co XEC BASIC MATERIALS INDEPENDENT OIL & GAS 95 91.25
Exxon Mobil XOM BASIC MATERIALS MAJOR INTEGRATED OIL AND GAS 95 87.5
Xerox Corporation XRX CONSUMER GOODS BUSINESS EQUIPMENT 95 93.75
           
WORST          
Firstenergy Corp FE UTILITIES ELECTRIC UTILITIES 20 20
Sears Holding Corp SHLD SERVICES DEPARTMENT STORES 20 36.25
Avon Products Inc AVP CONSUMER GOODS PERSONAL PRODUCTS 25 28.75
Dr Pepper Snapple Grou DPS CONSUMER GOODS BEVERAGES 25 27.5
Exelon EXC UTILITIES DIVERSIFIED UTILITIES 25 26.25
Potash Corp of Saskatchewan Inc POT BASIC MATERIALS NONMETALLIC MINERAL MINING 25 26.25
Symantec SYMC TECHNOLOGY INTERNET SOFTWARE & SERVICES 25 30

 

 

 




 

Commentary:
 

Large cap short interest remained essentially flat since late November.  Short interest is 0.19 days to cover above this time last year.  Since late November, short interest fell the most in financials and increased the most in industrials. 

The top scoring large cap industry is diversified machinery (IR, DOV, FLS, CMI, ITW, ITT).  Watch for European recovery to help support the basket next year thanks to easy comparisons.  Asset managers (AMP, BLK, PFG, TROW, BEN) are strong thanks to rising AUM and asset mix shift toward higher fee products.  Technical (INFY, VMW, ADSK) and business software (WIT, FISV, CTSH, ADP) are among the top scoring industries this week as managers increasingly shift to modeling 2014 software spending growth.   Lodging (H, HOT, MAR) benefits from RevPAR growth tied to rising occupancy, solid rates, and capacity adds.


In basics, buy industrial metals (CNX, ATI, CCJ) and steel & iron (NUE, TX, MT).  Major oil (XOM, BP) also score above average.  In consumer, focus on major food (MDLZ, ADM), textiles (NKE, VFC) and auto parts (LEA, JCI).  Across financials, buy asset managers, credit services (MCO, AXP, COF, DFS) and investment brokers (AMTD, SCHW, GS).   The top healthcare groups are biotechnology (CELG, BIIB, GILD) and healthcare plans (CI, HUM).  In industrials, concentrate on diversified machinery and industrial equipment (PH, EMR).  Aerospace/defense (BA, RTN, NOC) is also strong.  The best services industries include lodging, business services (CME, V, FIS), drug stores (WAG, CVS), and railroads (CSX, NSC, CP).  In technology, buy technical & system software, business software, Internet information providers (YHOO, FB, GOOG) and data storage (WDC, STX). 
 

LG CAP INDUSTRY SCORE BY SECTOR   12/17/2013
Sector Industry SCORE
     
BASIC MATERIALS INDUSTRIAL METALS & MINERALS 77.00
BASIC MATERIALS STEEL & IRON 75.56
BASIC MATERIALS MAJOR INTEGRATED OIL AND GAS 71.25
BASIC MATERIALS CHEMICALS- MAJOR DIVERSIFIED 68.33
BASIC MATERIALS AGRICULTURAL CHEMICALS 68.00
BASIC MATERIALS OIL & GAS DRILLING & EXPLORATION 66.43
BASIC MATERIALS INDEPENDENT OIL & GAS 61.76
BASIC MATERIALS OIL & GAS PIPELINES 60.00
BASIC MATERIALS OIL & GAS REFINING & MARKETING 60.00
BASIC MATERIALS OIL & GAS EQUIPMENT & SERVICES 56.25
BASIC MATERIALS GOLD 42.14
CONSUMER GOODS FOOD - MAJOR DIVERSIFIED 82.50
CONSUMER GOODS TEXTILES 76.25
CONSUMER GOODS AUTO PARTS 75.00
CONSUMER GOODS AUTO MANUFACTURERS- MAJOR 69.17
CONSUMER GOODS CIGARETTES 66.25
CONSUMER GOODS PROCESSED & PACKAGED GOODS 62.86
CONSUMER GOODS BEVERAGES 60.71
CONSUMER GOODS PERSONAL PRODUCTS 58.00
FINANCIALS ASSET MANAGEMENT 93.33
FINANCIALS CREDIT SERVICES 83.00
FINANCIALS INVESTMENT BROKERAGE 80.00
FINANCIALS LIFE INSURANCE 79.17
FINANCIALS INSURANCE BROKERS 75.00
FINANCIALS MONEY CENTER BANKS 72.22
FINANCIALS PROPERTY & CASUALITY INSURANCE 70.00
FINANCIALS REGIONAL BANKS 66.67
FINANCIALS SAVINGS & LOANS 61.67
FINANCIALS REITS 60.38
FINANCIALS FOREIGN MONEY CENTER BANKS 55.00
HEALTHCARE BIOTECHNOLOGY 76.00
HEALTHCARE HEALTH CARE PLANS 73.00
HEALTHCARE MEDICAL APPLIANCES & EQUIPMENT 67.14
HEALTHCARE MEDICAL INSTRUMENTS & SUPPLIES 63.00
HEALTHCARE DRUG MANUFACTURERS 59.67
INDUSTRIAL GOODS DIVERSIFIED MACHINERY 95.83
INDUSTRIAL GOODS INDUSTRIAL EQUIPMENT & COMPONENTS 86.67
INDUSTRIAL GOODS AEROSPACE/DEFENSE  PRODUCTS & SERVICES 82.14
INDUSTRIAL GOODS FARM & CONSTRUCTION MACHINERY 75.00
SERVICES LODGING 91.67
SERVICES BUSINESS SERVICES 85.00
SERVICES DRUG STORES 85.00
SERVICES RAILROADS 85.00
SERVICES DRUGS WHOLESALE 80.00
SERVICES RESORTS AND CASINOS 80.00
SERVICES ENTERTAINMENT- DIVERSIFIED 78.75
SERVICES CATV SYSTEMS 72.50
SERVICES AIR DELIVERY & FREIGHT SERVICES 70.00
SERVICES DISCOUNT, VARIETY STORES 66.25
SERVICES RESTAURANTS 66.25
SERVICES GROCERY STORES 63.33
SERVICES APPAREL STORES 60.00
SERVICES DEPARTMENT STORES 49.00
TECHNOLOGY TECHINICAL & SYSTEM SOFTWARE 93.33
TECHNOLOGY BUSINESS SOFTWARE & SERVICES 89.00
TECHNOLOGY INTERNET INFORMATION PROVIDER 81.00
TECHNOLOGY DATA STORAGE DEVICES 76.25
TECHNOLOGY APPLICATION SOFTWARE 75.00
TECHNOLOGY DIVERSIFIED COMPUTER SYSTEMS 75.00
TECHNOLOGY SCIENTIFIC & TECHNICAL INSTRUMENTS 75.00
TECHNOLOGY COMMUNICATION EQUIPMENT 70.71
TECHNOLOGY SEMICONDUCTOR- INTEGRATED CIRCUITS 68.33
TECHNOLOGY SEMICONDUCTOR-SPECIALIZED 65.83
TECHNOLOGY INTERNET SOFTWARE & SERVICES 58.33
TECHNOLOGY SEMICONDUCTOR EQUIPMENT & MATERIALS 58.33
TECHNOLOGY WIRELESS COMMUNICATIONS 57.22
TECHNOLOGY SEMICONDUCTOR- BROAD LINE 56.00
TECHNOLOGY DIVERSIFIED COMMUNICATION SERVICES 55.00
TECHNOLOGY TELECOM SERVICES - DOMESTIC 53.75
UTILITIES ELECTRIC UTILITIES 53.93
UTILITIES DIVERSIFIED UTILITIES 50.71
UTILITIES FOREIGN UTILITIES 38.33

 

None.

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