Mid Cap Best & Worst Report - January 28, 2015

Since 2010, the best scoring names in our weekly mid cap report have outpaced the S&P 400 by a median 348 bps in the following year.

  • The best mid cap sector is utilities.
  • The top scoring mid cap industry is trucking.

The average mid cap score is 65.89, which is above the four week moving average score of 63.75. The average mid cap stock is trading -15.61% below its 52 week high, 1.97% above its 200 dma, has 7.19 days to cover held short, and is expected to grow EPS by 15.23% next year.

The top scoring mid cap sector is utilities. Consumer goods, healthcare, financials, services, and technology score above average. Industrial goods and basic materials score below average.

According to ACT Research, Class 8 truck orders jumped 42% year-over-year in 2014. Fourth quarter order volume was the highest quarter for orders since 2006. 2014 also marked the best order year for trailers on record, according to FTR. The ATA truck tonnage index shows that tonnage increased 3.5% last year versus 2013 and was up 5.2% year-over-year in December (KNX, ODFL, HTLD). Restaurants (WEN, CBRL, CAKE, BWLD, EAT) offer seasonal tailwinds through the fourth quarter reporting season. The Nat'l Restaurant Association's restaurant performance index remains bullish on both the current situations and future expectations readings. Processed & packaged food (GIS, HAIN, FLO) offers revenue and profit opportunity thanks to emerging markets demand growth and expansion into convenience store channels. Broadline semiconductor (CAVM, IDTI) stocks and REITs (CBL, WRI, REG, BMR, BDN, NNN, DDR, ARE) round out our best scoring mid cap industry ranking this week.

No mid cap basics baskets score above the universe average again this week. In consumer goods, buy processed & packaged goods, textiles (WWW, COLM, SKX), and business equipment (HNI). The best financials industries are REITs and asset managers (EV, WETF, AB). Medical instruments (NUVA, DXCM, HRC, HAE, TFX, WST) and biotech (GEVA, CRL, ITMN, ACAD, CLVS) are top scoring across healthcare. In services, concentrate on trucking, restaurants, and specialty retailers (AAN, SBH, OUTR, BID).  Broad line semi, semi equipment (SPIL, TER), and technical & system software (CDNS, TYL) are best in technology.

 

Disclosure: None.

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