Large Cap Best & Worst Report - July 6, 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 63.20. The average large cap stock in our universe is trading -17.2% below its 52 week high, 3.27% above its 200 dma, has 4.91 days to cover held short, and is expected to grow EPS by 14.1% in the coming year.

Utilities is the top scoring large cap sector. Healthcare and consumer goods also score above average (defensive). Industrials and technology score in line with the average universe score. Financials, basics, and services score below average. Stay stock specific in those groups.

The following are the best and worst scoring large cap stocks in our universe. 

(Click on image to enlarge)

The next chart shows historical large cap sector scores since the Great Recession. 

Insurance brokers (AJG, MMC, AON) are the top industry in large cap this week. Cigarettes (PM, RAI, MO), processed & packaged goods (K, SJM, PEP, MKC, MJN), diversified utilities (SCG, ED, NI, WEC), and scientific and technical instruments (MTD, WAT) are also high scoring.  

Major chemicals (SHW, APD, ASH), gold (GOLD, NEM), and independent oil & gas (APC, NBL, DVN, CNQ) score best in large cap basic materials. The best consumer goods industries are cigarettes, processed & packaged goods, and personal products (PG, KMB, CL). The strongest financials industries are insurance brokers, REITS (HCN, FRT, BXP, KIM, DLR), and P&C insurers (CINF, CB, TRV, ALL). Medical instruments (BCR, SYK, COO, BDX), medical appliances (STJ, EW, RMD, MDT), and drugmakers (ABBV, PFE, JNJ, MRK) can be bought in healthcare. Aerospace/defense (RTN, NOC, HON, TDG, LMT) and industrial equipment (PNR, EMR) offer upside in industrials. Air delivery/freight (CHRW, UPS), discount retail (WMT, DLTR, DG), and business services (CTAS, CSGP, IRM, FIS) are top scoring in services. Scientific & technical instruments, diversified communication systems (CCI, AMT), and domestic telecom (VZ, T) are high scoring in technology. Diversified and electric utilities (SO, XEL, DUK, AEP) are also strong. 

Disclosure: None.

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