Mid Cap Report: The Best Mid Caps, Including HAS, OCR, DDS, IRF, KSU
The best scoring mid caps from one year ago (1/3/2013) averaged 762 bps of excess over the S&P 400, with 0% turnover. The top performers included NFLX up 280%, ACXM up 102%, MAN up 99%, ILMN up 99%. HBI up 94%, and VRX up 93%.
The average mid cap score is 72.69 this week, above the four week moving average score of 71.87. The average mid cap stock is trading 7.44% above its 200 day moving average, has 6.6 days to cover short, and is expected to see EPS growth of 14.57% next year.
The best scoring mid cap sector is consumer goods. Industrial goods also score above average. Services and healthcare score in line. Basics, technology, financials, and utilities score below average.
MID CAP | 1/2/2014 | 4 Week MA | |||
Company Name | Symbol | Sector | INDUSTRY | SCORE | SCORE |
BEST | |||||
Hasbro Inc | HAS | CONSUMER GOODS | TOYS & GAMES | 110 | 100 |
Omnicare | OCR | SERVICES | DRUG STORES | 110 | 110 |
Dillard's Inc. | DDS | SERVICES | DEPARTMENT STORES | 105 | 103.75 |
Int'l Rectifier | IRF | TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 105 | 103.75 |
Kansas City Southern | KSU | SERVICES | RAILROADS | 105 | 96.25 |
Phillips van Heusen | PVH | CONSUMER GOODS | TEXTILES | 105 | 91.25 |
Tractor Supply Co. | TSCO | SERVICES | SPECIALTY RETAIL, OTHER | 105 | 96.25 |
Verisign | VRSN | TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 105 | 107.5 |
Actavis | ACT | HEALTHCARE | DRUGS-GENERIC | 100 | 88.75 |
Alexion Pharma | ALXN | HEALTHCARE | DRUG MANUFACTURERS | 100 | 98.75 |
Arris Group | ARRS | TECHNOLOGY | COMMUNICATION EQUIPMENT | 100 | 97.5 |
Borg Warner | BWA | CONSUMER GOODS | AUTO PARTS | 100 | 98.75 |
Church and Dwight Co Inc | CHD | CONSUMER GOODS | CLEANING PRODUCTS | 100 | 98.75 |
Choice Hotels International, Inc | CHH | SERVICES | LODGING | 100 | 98.75 |
Core Lab | CLB | BASIC MATERIALS | OIL & GAS EQUIPMENT & SERVICES | 100 | 88.75 |
Commercial Metals Co | CMC | BASIC MATERIALS | STEEL & IRON | 100 | 97.5 |
Conseco Inc | CNO | FINANCIALS | ACCIDENT & HEALTH INSURANCE | 100 | 92.5 |
Columbia Sportswear | COLM | CONSUMER GOODS | TEXTILES | 100 | 92.5 |
Carpenter Technology Corp. | CRS | BASIC MATERIALS | STEEL & IRON | 100 | 97.5 |
Carlisle Co's | CSL | CONSUMER GOODS | RUBBER & PLASTICS | 100 | 97.5 |
Covance Inc. | CVD | HEALTHCARE | RESEARCH SERVICES | 100 | 86.25 |
Curtiss-Wright Corp. | CW | INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 100 | 100 |
Federal Mogul Corp | FDML | CONSUMER GOODS | AUTO PARTS | 100 | 80 |
Helmrich & Payne Inc | HP | BASIC MATERIALS | OIL & GAS DRILLING & EXPLORATION | 100 | 100 |
Hormel Foods | HRL | CONSUMER GOODS | MEAT PRODUCTS | 100 | 92.5 |
Illumina | ILMN | HEALTHCARE | BIOTECHNOLOGY | 100 | 100 |
Jack Henry | JKHY | TECHNOLOGY | BUSINESS SOFTWARE & SERVICES | 100 | 87.5 |
Lennar Corp | LEN | INDUSTRIAL GOODS | RESIDENTIAL CONSTRUCTION | 100 | 93.75 |
Manitowoc Company Inc | MTW | INDUSTRIAL GOODS | FARM & CONSTRUCTION MACHINERY | 100 | 95 |
NetEase | NTES | TECHNOLOGY | INTERNET INFORMATION PROVIDER | 100 | 83.75 |
NVR Inc | NVR | INDUSTRIAL GOODS | RESIDENTIAL CONSTRUCTION | 100 | 87.5 |
Open Text | OTEX | TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 100 | 100 |
Polaris Industries Partners | PII | CONSUMER GOODS | RECREATIONAL VEHICLES | 100 | 96.25 |
Stifel Fin'l | SF | FINANCIALS | INVESTMENT BROKERAGE | 100 | 100 |
Skechers USA | SKX | CONSUMER GOODS | TEXTILES | 100 | 81.25 |
Terex Corp | TEX | INDUSTRIAL GOODS | FARM & CONSTRUCTION MACHINERY | 100 | 100 |
TiVo Inc | TIVO | SERVICES | CATV SYSTEMS | 100 | 71.25 |
Tempur Pedic | TPX | CONSUMER GOODS | HOME FURNISHING & FIXTURES | 100 | 91.25 |
Toro Corp | TTC | INDUSTRIAL GOODS | SMALL TOOLS & ACCESSORIES | 100 | 98.75 |
Wolverine World Wide | WWW | CONSUMER GOODS | TEXTILES | 100 | 97.5 |
WORST | |||||
Amedisys Inc | AMED | HEALTHCARE | HOME HEALTH CARE | 25 | 42.5 |
Biomed Realty Trust | BMR | FINANCIALS | REITS | 25 | 35 |
Forest Oil | FST | BASIC MATERIALS | INDEPENDENT OIL & GAS | 25 | 33.75 |
Harmony Gold Mining | HMY | BASIC MATERIALS | GOLD | 25 | 28.75 |
Commentary:
The best scoring mid cap basket is electronics wholesale (AVT, ARW, WCC). Electronics typically enjoy tailwinds at this point in the year as book-to-bill climbs and '14 model planning kicks in. Farm & construction machinery (TEX, MTW) offer upside into 2014 and will offers opportunity as commercial construction activity climbs this year. Restaurants (CAKE, WEN, EAT) offer strong seasonality in the first quarter. Drug makers (ALXN, VRX) will continue to enjoy support tied to global roll-outs, maturing pipelines, label expansion, and specialty drug pricing power in 2014. Small tools (TTC, SNA, SSD) offer opportunity on rising home construction, auto sales, and manufacturing.
In mid cap basics, steel & iron (CRS, CMC, STLD), major chemicals (FMC, ASH), and drillers (HP, PTEN, OII) score best. Watch steel & iron for pricing recovery and demand tied to recovery in Europe and ongoing improvement in the U.S. Value added metals/services offer margin support. In consumer, buy textiles (PVH, WWW, SKX, COLM, HBI, UA), auto parts (FDML, BWA, TEN, GNTX, CLC), and beverages (MNST). Cotton remains a profit tailwind for textiles. Auto parts will continue to benefit from strong U.S. sales; however a bigger tailwind will come as European auto sales rebound strongly against weak comparisons. Investment brokers (SF, GHL, SEIC) and asset managers (EV, AMG, LAZ) score best in financials. Equity markets provide fee income opportunity as money flow out of lower fee fixed income products. Only drug makers score above average in mid cap healthcare -- focus on large cap instead. Across industrials, buy farm & construction machinery, small tools, residential construction (NVR, LEN, TOL, DHI), and aerospace/defense (CW, TDG, ESL, BEAV). As consumers become accustomed to rising rates, look for order activity to rebound thanks to improving job growth. In services, buy wholesale electronics, restaurants, advertising (IPG), and specialty retailers (TSCO, BID, PETM, SBH). The top scoring technology baskets include semi ICs (IRF, TQNT, SWKS), Internet software (VRSN, OTEX), and specialized semiconductors (QLGC).
MID CAP INDUSTRY SCORE BY SECTOR | 1/2/2014 | |
Sector | INDUSTRY | SCORE |
BASIC MATERIALS | STEEL & IRON | 88.00 |
BASIC MATERIALS | CHEMICALS- MAJOR DIVERSIFIED | 80.00 |
BASIC MATERIALS | OIL & GAS DRILLING & EXPLORATION | 80.00 |
BASIC MATERIALS | SPECIALTY CHEMICALS | 75.00 |
BASIC MATERIALS | OIL & GAS EQUIPMENT & SERVICES | 69.00 |
BASIC MATERIALS | INDEPENDENT OIL & GAS | 68.57 |
BASIC MATERIALS | INDUSTRIAL METALS & MINERALS | 63.33 |
BASIC MATERIALS | OIL & GAS REFINING & MARKETING | 57.50 |
CONSUMER GOODS | TEXTILES | 85.00 |
CONSUMER GOODS | AUTO PARTS | 78.75 |
CONSUMER GOODS | BEVERAGES | 75.00 |
CONSUMER GOODS | HOME FURNISHING & FIXTURES | 75.00 |
CONSUMER GOODS | BUSINESS EQUIPMENT | 73.33 |
CONSUMER GOODS | PACKAGING & CONTAINERS | 72.86 |
CONSUMER GOODS | PAPER & PAPER PRODUCTS | 70.00 |
CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 66.67 |
FINANCIALS | INVESTMENT BROKERAGE | 82.50 |
FINANCIALS | ASSET MANAGEMENT | 80.00 |
FINANCIALS | PROPERTY & CASUALITY INSURANCE | 73.33 |
FINANCIALS | REGIONAL BANKS | 72.14 |
FINANCIALS | INSURANCE BROKERS | 67.50 |
FINANCIALS | REITS | 56.30 |
HEALTHCARE | DRUG MANUFACTURERS | 90.00 |
HEALTHCARE | BIOTECHNOLOGY | 70.00 |
HEALTHCARE | HOSPITALS | 70.00 |
HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 69.17 |
HEALTHCARE | DIAGNOSTIC SUBSTANCES | 62.50 |
INDUSTRIAL GOODS | FARM & CONSTRUCTION MACHINERY | 91.67 |
INDUSTRIAL GOODS | SMALL TOOLS & ACCESSORIES | 90.00 |
INDUSTRIAL GOODS | RESIDENTIAL CONSTRUCTION | 89.00 |
INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 83.89 |
INDUSTRIAL GOODS | INDUSTRIAL ELECTRICAL EQUIPMENT | 72.50 |
INDUSTRIAL GOODS | GENERAL BUILDING MATERIALS | 68.33 |
INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 66.67 |
INDUSTRIAL GOODS | WASTE MANAGEMENT | 65.00 |
SERVICES | ELECTRONICS WHOLESALE | 92.50 |
SERVICES | RESTAURANTS | 91.67 |
SERVICES | ADVERTISING AGENCIES | 82.50 |
SERVICES | SPECIALTY RETAIL, OTHER | 80.83 |
SERVICES | TRUCKING | 80.00 |
SERVICES | BUSINESS SERVICES | 76.67 |
SERVICES | MOVIE PRODUCTION, THEATERS | 75.00 |
SERVICES | EDUCATION & TRAINING SERV | 74.00 |
SERVICES | PUBLISHING-NEWSPAPERS | 70.00 |
SERVICES | APPAREL STORES | 66.88 |
SERVICES | AUTO DEALERSHIPS | 65.00 |
SERVICES | BROADCASTING | 65.00 |
SERVICES | DISCOUNT, VARIETY STORES | 60.00 |
SERVICES | PERSONAL SERVICES | 53.33 |
TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 85.00 |
TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 81.25 |
TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 78.33 |
TECHNOLOGY | COMPUTER PERIPHERALS | 75.00 |
TECHNOLOGY | TECHNICAL & SYSTEM SOFTWARE | 74.00 |
TECHNOLOGY | COMMUNICATION EQUIPMENT | 72.00 |
TECHNOLOGY | BUSINESS SOFTWARE & SERVICES | 71.00 |
TECHNOLOGY | SEMICONDUCTOR-BROAD LINE | 70.00 |
TECHNOLOGY | INFORMATION & DELIVERY SERVICES | 66.67 |
TECHNOLOGY | SEMICONDUCTOR EQUIPMENT & MATERIALS | 66.67 |
TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 63.75 |
TECHNOLOGY | DIVERSIFIED ELECTRONICS | 60.00 |
TECHNOLOGY | PRINTED CIRCUIT BOARDS | 45.00 |
UTILITIES | DIVERSIFIED UTILITIES | 63.33 |
UTILITIES | GAS UTILITIES | 55.00 |
None.