Large Cap Report Best And Worst - June 10, 2014

By Todd Campbell

Tuesday, June 10, 2014 12:41 PM EDT

Our top scoring large cap stocks from 1 year ago produced an average 454 bps of excess return to the S&P 500 over the past year. The best performers from our list one year ago are WFT up 67%, HAL up 61%, MGA up 59%, GILD up 57%, NOC up 53%, and ITT up 52%.

Score	S&P	Excess
>90	500
26.74%	22.20%	4.54%

Utilities are the top scoring large cap sector.
The best scoring industry is drug stores.

The average large cap score is 63.31, above the four week moving average score of 60.35. The average large cap stock is trading -7.95% below its 52 week high, 5.01% above its 200 dma, has 4.15 days to cover held short, and is expected to grow EPS by 13.34% next year.

Utilities remain the top scoring sector. Industrial goods, healthcare, and consumer goods also score above average. Basic materials and financials score in line. Technology and services score below average.

LARGE CAP
	# Stocks	Average	Median	% 75 and above	% 25 and below
UTILITIES	30	69.7	70	43.33%	0.00%
INDUSTRIAL GOODS	52	68.7	70	46.15%	1.92%
HEALTHCARE	79	66.5	65	37.97%	2.53%
CONSUMER GOODS	79	64.6	65	35.44%	3.80%
BASIC MATERIALS	84	63.5	67.5	38.10%	3.57%
FINANCIALS	107	62.3	65	33.64%	1.87%
TECHNOLOGY	105	60.6	60	27.62%	1.90%
SERVICES	124	59.6	60	25.00%	1.61%

LG CAP				6/5/2014	6/12/2014	4 Week MA
Company Name	Symbol	Sector	INDUSTRY	SCORE	SCORE	SCORE
BEST
Sigma Aldrich	SIAL	HEALTHCARE	SPECIALTY CHEMICALS	110	110	102.5
AbbVie Inc.	ABBV	HEALTHCARE	DRUG MANUFACTURERS	110	105	108.75
Amphenol Corp	APH	TECHNOLOGY	DIVERSIFIED ELECTRONICS	105	105	103.75
Boeing	BA	INDUSTRIAL GOODS	AEROSPACE/DEFENSE PRODUCTS & SERVICES	80	105	85
Burger King	BKW	SERVICES	RESTAURANTS	105	105	97.5
CSX Corp	CSX	SERVICES	RAILROADS	105	105	105
Danaher	DHR	CONGLOMERATES	CONGLOMERATES	75	105	85
Eqt Corp	EQT	UTILITIES	GAS UTILITIES	105	105	102.5
Johnson & Johnson	JNJ	HEALTHCARE	DRUG MANUFACTURERS	105	105	103.75
Occidental Petroleum	OXY	BASIC MATERIALS	INDEPENDENT OIL & GAS	105	105	91.25
Republic Services	RSG	INDUSTRIAL GOODS	WASTE MANAGEMENT	80	105	82.5
Albemarle Corp	ALB	BASIC MATERIALS	SYNTHETICS	100	100	83.75
Chesapeake Energy	CHK	BASIC MATERIALS	INDEPENDENT OIL & GAS	100	100	92.5
EnCana Corp	ECA	BASIC MATERIALS	INDEPENDENT OIL & GAS	100	100	98.75
Essex Ppty Trust	ESS	FINANCIALS	REITS	100	100	95
General Dynamics	GD	INDUSTRIAL GOODS	AEROSPACE/DEFENSE PRODUCTS & SERVICES	100	100	98.75
Green Mtn. Coffee Roasters	GMCR	CONSUMER GOODS	PROCESSED & PACKAGED GOODS	95	100	98.75
Idexx Lab	IDXX	HEALTHCARE	DIAGNOSTIC SUBSTANCES	95	100	97.5
Illumina	ILMN	HEALTHCARE	BIOTECHNOLOGY	95	100	98.75
Lam Research Corp	LRCX	TECHNOLOGY	SEMICONDUCTOR EQUIPMENT & MATERIALS	100	100	100
Microchip Tech	MCHP	TECHNOLOGY	SEMICONDUCTOR-SPECIALIZED	75	100	80
O'Reilly Auto	ORLY	SERVICES	AUTO PARTS STORES	100	100	98.75
American Int'l Group	AIG	FINANCIALS	PROPERTY & CASUALITY INSURANCE	95	95	93.75
Alexion Pharma	ALXN	HEALTHCARE	DRUG MANUFACTURERS	90	95	92.5
Autonation	AN	SERVICES	AUTO DEALERSHIPS	100	95	97.5
Avalonbay Comm.	AVB	FINANCIALS	REITS	100	95	97.5
American Express Co	AXP	FINANCIALS	CREDIT SERVICES	70	95	75
Brown Forman Corp	BF.B	CONSUMER GOODS	BEVERAGES	95	95	92.5
Cummins Inc	CMI	INDUSTRIAL GOODS	DIVERSIFIED MACHINERY	95	95	93.75
C V S Corp	CVS	SERVICES	DRUG STORES	95	95	93.75
Walt Disney Company	DIS	SERVICES	ENTERTAINMENT- DIVERSIFIED	95	95	93.75
Dover Corp	DOV	INDUSTRIAL GOODS	DIVERSIFIED MACHINERY	90	95	92.5
The Directv Group Inc	DTV	TECHNOLOGY	COMMUNICATION EQUIPMENT	90	95	93.75
DaVita Inc	DVA	HEALTHCARE	SPECIALIZED HEALTH SERVICES	95	95	87.5
Edison Intl	EIX	UTILITIES	ELECTRIC UTILITIES	100	95	97.5
Eastman Chemical Co	EMN	BASIC MATERIALS	CHEMICALS- MAJOR DIVERSIFIED	95	95	95
Energizer Hldgs Inc	ENR	INDUSTRIAL GOODS	INDUSTRIAL ELECTRICAL EQUIPMENT	95	95	96.25
E O G Resources	EOG	BASIC MATERIALS	INDEPENDENT OIL & GAS	95	95	93.75
Entergy Corp New	ETR	UTILITIES	ELECTRIC UTILITIES	95	95	93.75
Goodyear Tire	GT	CONSUMER GOODS	RUBBER & PLASTICS	95	95	88.75
Halliburton	HAL	BASIC MATERIALS	OIL & GAS EQUIPMENT & SERVICES	95	95	93.75
Kellogg Company	K	CONSUMER GOODS	PROCESSED & PACKAGED GOODS	100	95	97.5
L3 Communications	LLL	SERVICES	SECURITY & PROTECTION SERVICES	95	95	87.5
Eli Lilly	LLY	HEALTHCARE	DRUG MANUFACTURERS	90	95	92.5
Medivation	MDVN	HEALTHCARE	BIOTECHNOLOGY	95	95	82.5
McGraw Hill Co's	MHFI	SERVICES	PUBLISHING-BOOKS	95	95	81.25
Merck	MRK	HEALTHCARE	DRUG MANUFACTURERS	100	95	98.75
M & T Bank	MTB	FINANCIALS	REGIONAL BANKS	65	95	73.75
Noble Energy	NBL	BASIC MATERIALS	INDEPENDENT OIL & GAS	70	95	75
Nextera Energy	NEE	UTILITIES	ELECTRIC UTILITIES	100	95	91.25
Northrup Grumman	NOC	INDUSTRIAL GOODS	AEROSPACE/DEFENSE PRODUCTS & SERVICES	70	95	75
Omnicare	OCR	SERVICES	DRUG STORES	95	95	88.75
Pepsico	PEP	CONSUMER GOODS	PROCESSED & PACKAGED GOODS	95	95	81.25
Quanta Svcs Inc	PWR	INDUSTRIAL GOODS	GENERAL CONTRACTORS	70	95	75
Reynolds American	RAI	CONSUMER GOODS	CIGARETTES	95	95	93.75
S L Green	SLG	FINANCIALS	REITS	95	95	92.5
Snap On Inc	SNA	INDUSTRIAL GOODS	SMALL TOOLS & ACCESSORIES	95	95	93.75
Transdigm Group Inc.	TDG	INDUSTRIAL GOODS	AEROSPACE/DEFENSE PRODUCTS & SERVICES	95	95	97.5
Time Warner Cable Inc	TWC	SERVICES	CATV SYSTEMS	70	95	75
Under Armor	UA	CONSUMER GOODS	TEXTILES	95	95	81.25
Universal Health	UHS	HEALTHCARE	HOSPITALS	95	95	95
Weatherfold International Inc	WFT	BASIC MATERIALS	OIL & GAS EQUIPMENT & SERVICES	95	95	93.75
Xcel Energy Inc	XEL	UTILITIES	ELECTRIC UTILITIES	70	95	75

WORST
Las Vegas Sands Corp	LVS	SERVICES	RESORTS AND CASINOS	30	15	25
Bed Bath & Beyond	BBBY	SERVICES	HOME FURNISHING & FIXTURES	15	20	16.25
Fireeye Inc	FEYE	TECHNOLOGY	APPLICATION SOFTWARE	15	20	18.75
Dr.Reddy's Labs	RDY	HEALTHCARE	DRUG MANUFACTURERS	35	20	23.75
Silver Wheaton	SLW	BASIC MATERIALS	SILVER	15	20	18.75

670 stocks across our all-cap universe are trading more than 5% above their 200 dma, up from 440 in April.

Generic patent expiration is accelerating from $34 billion in brand drugs in 2014 to $66 billion in 2015. That will support pharmacy margin at drug stores (OCR, CVS, RAD). Reform driven insurance enrollment growth and retail clinic expansion will drive overall script volume higher over the coming year.

Large Cap
INDUSTRY	SCORE
BEST
DRUG STORES	82.50
PROCESSED & PACKAGED GOODS	81.25
AEROSPACE/DEFENSE PRODUCTS & SERVICES	80.50
CIGARETTES	80.00
INDEPENDENT OIL & GAS	79.71
WORST
STEEL & IRON	42.14
INVESTMENT BROKERAGE	40.00
GOLD	35.83
RESORTS AND CASINOS	33.33

M&A activity offers support for processed & packaged goods (GMCR, PEP, K, CPB), which have leveraged recession era cost savings for margin expansion. The Farnborough Air Show kicks off July 18th and air show orders will add to backlogs that already offer support for suppliers (BA, GD, TDG, NOC, SPR, BEAV). Manager de-risking into summer vacation season historically benefits cigarette makers (RAI, LO, MO). Total natural gas in storage is significantly below the 5-year average heading into summer cooling demand (OXY, ECA, CHK, NBL, EOG, RRC, SWN, PXD).

In basic materials, buy independent oil & gas, major chemicals (EMN, SHW, ASH), and oil & gas pipelines (SE, WMB). In consumer goods, focus on processed & packaged goods, cigarettes, and auto parts (TRW, MGA, ALV). European commercial vehicle registrations grew 5.1% year-over-year in April, marking the 8th consecutive month of growth. The best financials baskets are REITs (ESS, SLG, AVB, CPT, VNO, PSA), credit services (AXP, SLM, MCO), and money centers (WFC, STI, PNC). Healthcare plans (HUM, WLP, CI) and medical appliances (MDT, EW, RMD) score best in healthcare. Concentrate on Aerospace and diversified machinery (DOV, CMI, ITW) in industrial goods. The best services industries are drug stores, rails (CSX, NSC, KSU), and restaurants (BKW, CMG). The Nat'l Restaurant Association's Expectations Index is at 102.2 as of April, a two year high. The overall Restaurant Performance Index remains above 100, signaling expansion.

In technology, consider broadline semis (INTC), semi ICs (TSM, SWKS), and semi equipment & materials (LRCX, AMAT).

LG CAP INDUSTRY SCORE BY SECTOR		6/12/2014
Sector	Industry	SCORE

BASIC MATERIALS	INDEPENDENT OIL & GAS	79.71
BASIC MATERIALS	CHEMICALS- MAJOR DIVERSIFIED	76.67
BASIC MATERIALS	OIL & GAS PIPELINES	75.00
BASIC MATERIALS	OIL & GAS EQUIPMENT & SERVICES	70.00
BASIC MATERIALS	OIL & GAS DRILLING & EXPLORATION	65.56
BASIC MATERIALS	OIL & GAS REFINING & MARKETING	63.33
BASIC MATERIALS	INDUSTRIAL METALS & MINERALS	62.50
BASIC MATERIALS	MAJOR INTEGRATED OIL AND GAS	61.25
BASIC MATERIALS	AGRICULTURAL CHEMICALS	55.00
BASIC MATERIALS	STEEL & IRON	42.14
BASIC MATERIALS	GOLD	35.83
CONSUMER GOODS	PROCESSED & PACKAGED GOODS	81.25
CONSUMER GOODS	CIGARETTES	80.00
CONSUMER GOODS	AUTO PARTS	75.83
CONSUMER GOODS	FOOD - MAJOR DIVERSIFIED	72.50
CONSUMER GOODS	BEVERAGES	71.67
CONSUMER GOODS	TEXTILES	60.00
CONSUMER GOODS	AUTO MANUFACTURERS- MAJOR	54.17
CONSUMER GOODS	PERSONAL PRODUCTS	52.00
FINANCIALS	REITS	74.29
FINANCIALS	CREDIT SERVICES	72.50
FINANCIALS	MONEY CENTER BANKS	67.78
FINANCIALS	PROPERTY & CASUALITY INSURANCE	65.31
FINANCIALS	REGIONAL BANKS	59.50
FINANCIALS	LIFE INSURANCE	59.17
FINANCIALS	INSURANCE BROKERS	58.75
FINANCIALS	FOREIGN MONEY CENTER BANKS	57.00
FINANCIALS	ASSET MANAGEMENT	54.38
FINANCIALS	SAVINGS & LOANS	42.50
FINANCIALS	INVESTMENT BROKERAGE	40.00
HEALTHCARE	HEALTH CARE PLANS	74.00
HEALTHCARE	MEDICAL APPLIANCES & EQUIPMENT	66.25
HEALTHCARE	DRUG MANUFACTURERS	65.65
HEALTHCARE	MEDICAL INSTRUMENTS & SUPPLIES	61.11
HEALTHCARE	BIOTECHNOLOGY	60.42
INDUSTRIAL GOODS	AEROSPACE/DEFENSE PRODUCTS & SERVICES	80.50
INDUSTRIAL GOODS	DIVERSIFIED MACHINERY	71.43
INDUSTRIAL GOODS	INDUSTRIAL EQUIPMENT & COMPONENTS	70.00
INDUSTRIAL GOODS	FARM & CONSTRUCTION MACHINERY	52.00
SERVICES	DRUG STORES	82.50
SERVICES	RAILROADS	74.00
SERVICES	RESTAURANTS	70.00
SERVICES	GROCERY STORES	65.00
SERVICES	DRUGS WHOLESALE	63.33
SERVICES	ENTERTAINMENT- DIVERSIFIED	61.25
SERVICES	CATV SYSTEMS	60.71
SERVICES	AIR DELIVERY & FREIGHT SERVICES	60.00
SERVICES	LODGING	58.75
SERVICES	BUSINESS SERVICES	58.50
SERVICES	DISCOUNT, VARIETY STORES	57.50
SERVICES	APPAREL STORES	56.43
SERVICES	DEPARTMENT STORES	48.33
SERVICES	RESORTS AND CASINOS	33.33
TECHNOLOGY	SEMICONDUCTOR- BROAD LINE	68.75
TECHNOLOGY	SEMICONDUCTOR- INTEGRATED CIRCUITS	68.75
TECHNOLOGY	SEMICONDUCTOR EQUIPMENT & MATERIALS	67.00
TECHNOLOGY	DIVERSIFIED COMMUNICATION SERVICES	66.67
TECHNOLOGY	COMMUNICATION EQUIPMENT	65.00
TECHNOLOGY	SCIENTIFIC & TECHNICAL INSTRUMENTS	65.00
TECHNOLOGY	TELECOM SERVICES - DOMESTIC	65.00
TECHNOLOGY	INTERNET INFORMATION PROVIDER	63.33
TECHNOLOGY	SEMICONDUCTOR-SPECIALIZED	62.50
TECHNOLOGY	DIVERSIFIED COMPUTER SYSTEMS	61.67
TECHNOLOGY	BUSINESS SOFTWARE & SERVICES	61.00
TECHNOLOGY	APPLICATION SOFTWARE	55.00
TECHNOLOGY	TECHINICAL & SYSTEM SOFTWARE	55.00
TECHNOLOGY	INTERNET SOFTWARE & SERVICES	54.50
TECHNOLOGY	DATA STORAGE DEVICES	53.75
TECHNOLOGY	WIRELESS COMMUNICATIONS	47.50
UTILITIES	ELECTRIC UTILITIES	74.64
UTILITIES	FOREIGN UTILITIES	68.33
UTILITIES	DIVERSIFIED UTILITIES	62.00

None.

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