Our top scoring large cap stocks from 1 year ago have produced an average 297 bps of excess return to the S&P 500 over the past year. Among our best scoring picks from a year ago (5/7/2013) are SWY up 62%, MGA up 61%, NOC up 60%, MCK up 55%, and WFT up 54%. 

• Utilities score best across large cap.
• The best large cap industry is major oil & gas

The average score across our large cap universe is 58.95 this week, above the four week moving average score of 57.29. The average large cap is trading -10.45% below its 52 week high, 2.67% above its 200 dma, has 3.7 days to cover short, and is expected to post EPS growth of 13.58% next year.
Utilities, industrial goods, and healthcare are the strongest large cap sectors. Basic materials also score above average. Consumer goods, financials, technology, and services score below average.

The best scoring large cap industry is major oil & gas (BP, COP, XOM). We are in the midst of the strongest period of the year for performance for energy related stocks. Historically, strength in May has proven a great opportunity to normalize weights ahead of weaker returns in the third quarter. Aerospace/defense (GD, TDG, NOC) is strong and benefits ahead of summer air show orders. Typically, suppliers offer opportunity as orders and backlogs support OEM production upside. Drug stores (CVS, RAD, OCR) continue to expand healthcare services to drive foot traffic, script growth, and front end sales. The re-exertion of the patent cliff offers margin friendly bottom line support through 2015. Vacancy rates continue to provide upside to effective rents (AVB, SLG, ESS, CPT, EQR). Construction spending grew 8.3% year-over-year in the first quarter. March construction spending was up 8.4% from a year ago. Lodging, office, and commercial all posted solid year-over-year growth, climbing 29.6%, 10.9%, and 7.4%, respectively.  Electric utilities (NEE, ETR, EIX, XEL) enjoy positive seasonal tailwinds through the shoulder months. Rising natural gas supports spot prices. Major chemicals (EMN, SHW, ASH) round out the top scoring large cap industries this week.

In large cap basics, buy major oil & gas, major chemicals, and pipelines (SE, WMB). Independent oil & gas (EOG, ECA, COG, CHK) also scores highly. In consumer goods, focus on cigarettes (LO, RAI), auto parts (TRW, MGA, ALV), and processed & packaged goods (K, GMCR, MJN). The top financials baskets include REITs, credit services (SLM, AXP), and P&C insurers (WRB, TRV, PRE). P&C insurers tend to provide upside through hurricane season.  In healthcare, buy drug makers (MRK, JNJ, VRX, LLY, ALXN), medical appliances (EW, ZMH, RMD), and healthcare plans (HUM, WLP). Medicaid enrollment supports private Medicaid insurers as 3 million new enrollees help drive revenue higher at both diversified and niche insurers. Every industrials group scores above average this week, led by aerospace/defense, diversified machinery (DOV, CMI, ITW), and industrial equipment (PNR, PH). In services, focus on drug stores, rails (UNP, CSX), and diversified entertainment (DIS, TWX). The top technology industries are diversified communication services (AMT, LVLT), domestic telecom (CTL, T), and semi ICs (MRVL, TSM, SWKS). Electric, diversified (WEC, SCG, PEG), and foreign utilities (ENI) all score above average.