Large Cap Best & Worst Report - May 31, 2016

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

The average large cap score is 62.65 and that's above the four week average score of 59.5. The average large cap stock in our universe is trading -16.8% below its 52 week high, 4.75% above its 200 dma, has 4.37 days to cover held short, and is expected to post EPS growth of 14.04% in the coming year.

The top scoring sectors are utilities and industrial goods. Healthcare, technology, and basics also score high. Consumer goods, services, and financials score below average.

(Click on image to enlarge)

The following chart shows historical large cap scores over time. 

The best large cap industry is insurance brokers (MMC, AJG, AON). Scientific & technical instruments (WAT, MTD, A), major chemicals (FMC, EMN, APD, ASH, SHW), major food (MDLZ), and diversified communication systems (AMT, LVLT) also score high. 

In basics, focus on major chemicals, independent oil & gas (PXD, OXY, COG, NBL, EOG, APA, RRC, ECA, CNQ), and steel & iron (TS, SID, PKX, NUE). The top consumer goods groups are major food, cigarettes (PM, MO), and processed & packaged goods (MKC, PEP, CPB, CAG). The highest scoring financials industries include insurance brokers, money center banks (STI, JPM, BNS, BK), and credit services (DFS, SLM, EFX). Medical instruments (BCR, BSX, SYK, COO, BDX), healthcare plans (UNH, PNR), and drugmakers (ABBV, JNJ, MRK, BMY, PFE) can be bought in healthcare. Diversified machinery (DOV, IR, ITW) and industrial equipment (PNR, PH) are best in industrials. Air delivery/freight (CHRW, FDX), discount stores (DG, DLTR, WMT), and restaurants (YUM, DRI) can be bought in services. Scientific & technical instruments, diversified communication, and Internet software (EQIX, CTXS, CRM, FFIV, AMZN) are the strongest industries in technology. Diversified utilities (NI, SCG, EXC, WEC, PEG, PCG) and electric utilities (NEE, DTE, ETR, EIX, NRG, AEP) can also be owned in portfolios. 

Disclosure: None.

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