Best And Worst In Large Cap - July 12, 2016

  • The best large cap sectors are utilities and healthcare.
  • The highest scoring large cap industry is insurance brokers.

The average large cap score is 64.9. The average large cap stock in our universe is trading -15.73% below its 52 week high, 5.16% above its 200 dma, has 4.91 days to cover held short, and is expected to grow its EPS by 14.1% next year.

Utilities and healthcare are the strongest scoring large cap sectors. Industrial goods and consumer goods also score high. Technology and services stocks score in line with the average universe score. Financials and basics score below average.

The strongest scoring industry across our universe of large cap stocks is insurance brokers (AJG, MMC, AON). Domestic telecom (VZ, CTL, T), cigarettes (PM, RAI, MO), major food (MDLZ), and scientific & technical instruments (MTD, WAT) also score strong. The industry ranking is defensive. 

In basics, concentrate your attention on major chemicals (SHW, APD, ASH), independent oil & gas (APC, NBL, DVN), and gold (GOLD, NEM, AU). Cigarettes, major food, and processed & packaged goods (SJM, PEP, K, MKC, MJN) are best in consumer goods. The strongest financials industries are insurance brokers, REITS (HCN, FRT, KIM, BXP, PLD, HCP, DLR), and P&C insurers (CINF, CB, TRV, ALL, WRB). Medical instruments (BCR, SYK, COO, BAX, BSX), medical appliances (VAR, STJ, EW), and drugmakers (ABBV, PFE, JNJ, RDY, MRK, ABT, BMY) are top scoring in healthcare. Aerospace/defense (RTN, HON, NOC, TDG, LMT), diversified machinery (ITW, IR, DOV), and industrial equipment (PNR, EMR) offer upside in industrial goods. The highest scoring services baskets are air delivery & freight (CHRW, UPS, EXPD), discount stores (WMT, DLTR, COST), and business services (ICE, CTAS, CSGP, IRM). In technology, focus on domestic telecom, scientific & technical instruments, and Internet software (OTEX, AMZN, FFIV, VRSN, CTXS, SINA, EQIX, CRM). Diversified utilities (SCG, ED, NI, WEC) and electric utilities (SO, XEL, DUK, AEP) are also top scoring. 

Disclosure: None.

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