E Best And Worst In Small Cap - July 28, 2016

  • The strongest small cap sectors are utilities and financials.
  • The best small cap industry is Internet information.

The average small cap score this week is 53.84. In our universe, the average small cap is trading -27.37% below its 52 week high, 6.53% above its 200 dma, and has 7.18 days to cover held short.

The strongest small cap sectors are utilities, financials, industrial goods, and technology. Consumer goods score in line with the average universe score. Healthcare, basics, and services score below average.

The following chart shows historical small cap scores by sector. 

The best small cap industry is Internet information providers (XOXO, BCOR). Specialized semi (QLGC, MPWR), business software (MSTR, EBIX, TSYS, PRFT), regional banks (CFNL, TCBK, SNBC), and diversified electronics (SIMO, MEI) are also top scoring in small cap. 

The strongest basics baskets in small cap are steel & iron (SCHN, HAYN, AKS), gold (NG, DRD), and industrial metals & minerals. Home furnishings (ETH, SCSS), auto parts (SRI), and processed & packaged goods are best in consumer. Regional banks, credit services (WRLD), and S&Ls (PROV, FBC, NWBI, BRKL) can be bought in financials. The top healthcare groups are specialized health services (AHS, BEAT), home healthcare (LHCG, AMED), and medical appliances (ZLTQ, SPNC, NXTM, OFIX, CRY). In industrials, focus on general building materials (HW), aerospace/defense (TASR), and industrial electrical (BGC). the strongest services industries include staffing (CCRN, BBSI), catalogs (FLWS), and specialty retail (HZO). Internet information, specialized semi, and business software (MSTR, EBIX, TSYS, PRFT) can be bought in technology.

Disclosure: None.

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