Best And Worst Mid Cap Report
The best scoring mid caps from one year ago (2/6/2013) averaged 196 bps of excess over the S&P 400, with 0% turnover. The top performers include ILMN up 193%, NFLX up 121%, VRX up 102%, HBI up 83%, ALR up 74%, and OTEX up 73%.
- The best scoring mid cap sector is industrial goods
- The top mid cap industry is residential construction.
The average score across our mid cap universe is 60.71 this week, below the four week moving average score of 66.28. The average mid cap is trading -15.75% below its 52 week high, 0.42% above its 200 dma, has 7.15 days to cover short, and is expected to grow EPS by 18% next year.
The best scoring mid cap sector is industrial goods. Consumer, healthcare, and technology also score above average. Financials score in line. Services, basics, and utilities score below average.
MID CAP | 2/6/2014 | 4 Week MA | |||
Company Name | Symbol | Sector | INDUSTRY | SCORE | SCORE |
BEST | |||||
Teradyne | TER | TECHNOLOGY | SEMICONDUCTOR EQUIPMENT & MATERIALS | 105 | 108.75 |
Conseco Inc | CNO | FINANCIALS | ACCIDENT & HEALTH INSURANCE | 100 | 103.75 |
Heartland Express | HTLD | SERVICES | TRUCKING | 100 | 100 |
Manitowoc Company Inc | MTW | INDUSTRIAL GOODS | FARM & CONSTRUCTION MACHINERY | 100 | 100 |
NVR Inc | NVR | INDUSTRIAL GOODS | RESIDENTIAL CONSTRUCTION | 100 | 98.75 |
Dealertrack Hldgs Inc | TRAK | TECHNOLOGY | APPLICATION SOFTWARE | 100 | 98.75 |
Ultra Petroleum Corp. | UPL | BASIC MATERIALS | INDEPENDENT OIL & GAS | 100 | 90 |
Choice Hotels International, Inc | CHH | SERVICES | LODGING | 95 | 97.5 |
Commercial Metals Co | CMC | BASIC MATERIALS | STEEL & IRON | 95 | 95 |
Columbia Sportswear | COLM | CONSUMER GOODS | TEXTILES | 95 | 96.25 |
Diebold Inc | DBD | CONSUMER GOODS | BUSINESS EQUIPMENT | 95 | 98.75 |
Hub Group Inc | HUBG | SERVICES | AIR DELIVERY & FREIGHT SERVICES | 95 | 96.25 |
Littelfuse | LFUS | INDUSTRIAL GOODS | INDUSTRIAL ELECTRICAL EQUIPMENT | 95 | 97.5 |
Medidata Solutions | MDSO | TECHNOLOGY | HEALTHCARE INFORMATION SERVICES | 95 | 97.5 |
Middleby Corp | MIDD | INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 95 | 97.5 |
PennyMac | PMT | FINANCIALS | REIT- RESIDENTIAL | 95 | 75 |
Terex Corp | TEX | INDUSTRIAL GOODS | FARM & CONSTRUCTION MACHINERY | 95 | 98.75 |
Tempur Pedic | TPX | CONSUMER GOODS | HOME FURNISHING & FIXTURES | 95 | 95 |
Take Two Software | TTWO | TECHNOLOGY | MULTIMEDIA & GRAPHICS SOFTWARE | 95 | 78.75 |
Acxiom Corp | ACXM | TECHNOLOGY | IT SERVICES | 90 | 86.25 |
Align Tech | ALGN | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 90 | 92.5 |
Alere Inc. | ALR | HEALTHCARE | MEDICAL LABORATORIES AND RESEARCH | 90 | 91.25 |
Alexandria R E Equities | ARE | FINANCIALS | REITS | 90 | 67.5 |
Arris Group | ARRS | TECHNOLOGY | COMMUNICATION EQUIPMENT | 90 | 93.75 |
Brocade Communications Systems | BRCD | TECHNOLOGY | DATA STORAGE DEVICES | 90 | 93.75 |
Cognizant | CTSH | TECHNOLOGY | BUSINESS SOFTWARE & SERVICES | 90 | 91.25 |
Curtiss-Wright Corp. | CW | INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 90 | 93.75 |
Dupont Fabros | DFT | FINANCIALS | PROPERTY MANAGEMENT | 90 | 76.25 |
Devry Inc. | DV | SERVICES | EDUCATION & TRAINING SERV | 90 | 90 |
Esterline Tech | ESL | INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 90 | 93.75 |
KB Home | KBH | INDUSTRIAL GOODS | RESIDENTIAL CONSTRUCTION | 90 | 65 |
Lennox Int'l | LII | CONSUMER GOODS | APPLIANCES | 90 | 93.75 |
Oshkosh Truck | OSK | CONSUMER GOODS | TRUCKS & OTHER VEHICLES | 90 | 93.75 |
Bank of The Ozarks | OZRK | FINANCIALS | REGIONAL BANKS | 90 | 88.75 |
Perkinelmer | PKI | HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 90 | 86.25 |
Sturm Ruger & Co. | RGR | CONSUMER GOODS | SPORTING GOODS | 90 | 91.25 |
SVB Financial | SIVB | FINANCIALS | REGIONAL BANKS | 90 | 86.25 |
S P X Corp. | SPW | INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 90 | 93.75 |
Tenneco Automotive | TEN | CONSUMER GOODS | AUTO PARTS | 90 | 87.5 |
Trinity Industries Inc | TRN | SERVICES | RAILROADS | 90 | 93.75 |
Toro Corp | TTC | INDUSTRIAL GOODS | SMALL TOOLS & ACCESSORIES | 90 | 92.5 |
Amerco Inc | UHAL | SERVICES | RENTAL & LEASING SERVICES | 90 | 96.25 |
Wendy's International Inc | WEN | SERVICES | RESTAURANTS | 90 | 93.75 |
U.S. Steel | X | INDUSTRIAL GOODS | METAL FABRICATION | 90 | 90 |
WORST | |||||
Thor Industries | THO | CONSUMER GOODS | RECREATIONAL VEHICLES | 20 | 27.5 |
Thoratec | THOR | HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 20 | 26.25 |
Casey's Gen'l Store | CASY | SERVICES | GROCERY STORES | 25 | 22.5 |
Cooper Tire and Rubber Co | CTB | CONSUMER GOODS | RUBBER & PLASTICS | 25 | 28.75 |
Janus Capital Group Inc | JNS | FINANCIALS | ASSET MANAGEMENT | 25 | 51.25 |
Taubman Centers | TCO | FINANCIALS | REITS | 25 | 31.25 |
Commentary:
The S&P 400 (MDY) has finished April higher than it begins February in 8 of the past 10 years, rising an average and median 6.3% and 5.7%, respectively. The MDY's standard deviation is 5.71% and its correlation to the S&P 500 is 0.91.
The following mid cap companies offer the best seasonal tailwinds for the three months ending April.
The best scoring mid cap industry is residential construction (NVR, KBH, RYL). After digesting 2012 and early 2013 gains, the industry is re-exerting as managers increasingly believe consumer confidence will outpace rising rates. Residential construction spending grew 18% to $330.7 billion in 2013 from 2012. Residential construction spend in December was 17.5% higher than a year ago. Tight capacity and steady growth offers pricing opportunity for trucking (HTLD, KNX) this year. Broadline semi (CAVM) is strong scoring in line with the seasonal improvement in book-to-bill. Accident & health insurance (CNO, AIZ) and business equipment (DBD, PAY) round out the mid cap best industries ranking this week.
In mid cap basics, only oil & gas drilling (PTEN) score above average. Steel & iron (CMC) score in line. Buy business equipment, textiles (COLM, DECK), and processed & packaged goods (HAIN, FLO) in consumer. Only accident & health insurance and investment brokers (SF, GBL) score above average across financials. The top healthcare groups are hospitals (THC, LPNT) and biotech (TECH, QCOR). In industrials, concentrate on residential construction, industrial electrical equipment (LFUS), and aerospace/defense (ESL, CW). In services, buy trucking, restaurants (WEN, EAT, PZZA), and education (DV). The best technology baskets are broad line semi, computer peripherals (ZBRA, LXK, EFII), and semi equipment & materials (TER).
MID CAP INDUSTRY SCORE BY SECTOR | 2/6/2014 | |
Sector | INDUSTRY | SCORE |
BASIC MATERIALS | OIL & GAS DRILLING & EXPLORATION | 62.50 |
BASIC MATERIALS | STEEL & IRON | 60.71 |
BASIC MATERIALS | INDEPENDENT OIL & GAS | 57.50 |
BASIC MATERIALS | INDUSTRIAL METALS & MINERALS | 56.67 |
BASIC MATERIALS | SYNTHETICS | 53.75 |
BASIC MATERIALS | SPECIALTY CHEMICALS | 50.00 |
BASIC MATERIALS | OIL & GAS EQUIPMENT & SERVICES | 48.33 |
CONSUMER GOODS | BUSINESS EQUIPMENT | 72.50 |
CONSUMER GOODS | TEXTILES | 68.00 |
CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 65.00 |
CONSUMER GOODS | PACKAGING & CONTAINERS | 63.33 |
CONSUMER GOODS | AUTO PARTS | 61.00 |
FINANCIALS | ACCIDENT & HEALTH INSURANCE | 75.00 |
FINANCIALS | INVESTMENT BROKERAGE | 63.75 |
FINANCIALS | REGIONAL BANKS | 60.45 |
FINANCIALS | REITS | 60.00 |
FINANCIALS | ASSET MANAGEMENT | 53.33 |
FINANCIALS | SURETY & TITLE INSURANCE | 45.00 |
HEALTHCARE | HOSPITALS | 66.25 |
HEALTHCARE | BIOTECHNOLOGY | 62.50 |
HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 60.00 |
INDUSTRIAL GOODS | RESIDENTIAL CONSTRUCTION | 91.67 |
INDUSTRIAL GOODS | INDUSTRIAL ELECTRICAL EQUIPMENT | 66.25 |
INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 64.29 |
INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 58.13 |
SERVICES | TRUCKING | 85.00 |
SERVICES | RESTAURANTS | 70.71 |
SERVICES | EDUCATION & TRAINING SERV | 70.00 |
SERVICES | RENTAL & LEASING SERVICES | 62.50 |
SERVICES | MOVIE PRODUCTION, THEATERS | 60.00 |
SERVICES | APPAREL STORES | 56.00 |
SERVICES | BUSINESS SERVICES | 55.50 |
SERVICES | DEPARTMENT STORES | 55.00 |
SERVICES | SPECIALTY RETAIL, OTHER | 50.00 |
SERVICES | TECHNICAL SERVICES | 45.00 |
SERVICES | AUTO DEALERSHIPS | 43.33 |
TECHNOLOGY | SEMICONDUCTOR-BROAD LINE | 77.50 |
TECHNOLOGY | COMPUTER PERIPHERALS | 69.00 |
TECHNOLOGY | SEMICONDUCTOR EQUIPMENT & MATERIALS | 65.00 |
TECHNOLOGY | BUSINESS SOFTWARE & SERVICES | 64.44 |
TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 58.00 |
TECHNOLOGY | COMMUNICATION EQUIPMENT | 55.00 |
TECHNOLOGY | INFORMATION & DELIVERY SERVICES | 53.33 |
TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 50.00 |
TECHNOLOGY | PRINTED CIRCUIT BOARDS | 46.67 |
UTILITIES | GAS UTILITIES | 51.67 |
None.