Since 2010, the top scoring stocks in our large cap report each week have outpaced the SPX by a median 281 bps in the following year.

• Healthcare is the best large cap sector.
• The top large cap industry is drug stores.

The average large cap score is 61.36, which is above the four week moving average scores of 60.35, The average large cap is trading -11.36% below its 52 week high, 4.7% above its 200 dma, has 4.12 days to cover held short, and is expected to grow EPS by 14.08% next year.

Healthcare, technology, and services score above average. Utilities and consumer goods score in line. Industrial goods, financials, and basics score below average.

Drug stores (OCR, CVS, RAD) and wholesale drugs (MCK, ABC, CAH) are top scoring. The average person over age 65 fills more than 2 times the number of scripts as those age 45 to 54 years. The combination of aging boomers and rising healthcare utilization tied to reform remain tailwinds for same store sales growth. Major chemicals (SHW, ASH, APD) benefit from lower input costs. Healthcare plan (AET, HUM, ANTM, CI) premium revenue could exceed street estimates thanks to conservative forecasts. Auto parts (BWA, JCI, LEA) upside could come thanks to EU production growth. EU passenger car registrations grew 8.6% year-over-year in Q1.

The only basic materials industry to score above the average universe score is major chemicals. In consumer goods, focus on auto parts, cigarettes (RAI, LO), and textiles (UA, NKE, LULU). Credit services (SLM, ADS, MCO) is the only financials basket to score above average. Healthcare plans, drug makers (ABBV, ENDP, VRTX, PFE, NVS), and biotech (MDVN, GILD, CELG, BMRN, AMGN) can be bought across healthcare. The top industrial goods group is aerospace/defense (BA, TDG, SPR). Drug stores, wholesale drugs, and discount variety stores (DLTR, DG, TGT) score highest in services.  In technology, concentrate on Internet software (EQIX, CTXS, CRM, AMZN, VRSN, AKAM), Internet information (LNKD, NTES, FB, EXPE), and semiconductor ICs (TSM, SUNE, SWKS, BRCM). Foreign utilities (ENI, HNP) are also attractive.