Since 2010, the best scoring names in our weekly mid cap report have outpaced the S&P 400 by a median 341 bps in the following year.

• Healthcare is the best mid cap sector.
• The top mid cap industry is restaurants.

The average mid cap stock score is 68.27, which is above our four week moving average score of 68. The average mid cap stock in our universe is trading -13.31% below its 52 week high, 6.08% above its 200 dma, has 6.21 days to cover held short, and is expected to grow its EPS by 15.38% next year.

Healthcare is the top mid cap sector. Technology and consumer goods also score above the mid cap universe average score. Services score in line. Financials, industrial goods, utilities, and basic materials score below average.

Restaurants (CBRL, WEN, BWLD, EAT, PZZA) are the best mid cap industry. Operator optimism remains strong for same store sales and foot traffic this year. In the 3-month period running from November through January, retail sales at restaurants were 9% higher year-over-year. Asset managers (EV, OZM, AB) are top scoring and benefit from rising AUM and investors shifting to higher-fee risk products. Synthetics (CMP, POL, MTX) and truckers (ODFL, KNX, HTLD) benefit from lower input costs tied to lower crude prices. Trucking volume continues to support spot rates. Intermodal volume remains solid. Cross-border NAFTA trucking volume remains strong with December value shipped by truck up 9.3% versus last year. Broadline semi (CAVM, IDTI) benefits from the increasing electrification of industrial goods.

Only synthetics score above average in mid cap basic materials. In consumer goods, focus on textiles (WWW, SKX, COLM, CRI) and processed & packaged goods (FLO, HAIN). Asset managers and regional banks (SIVB, FHN, OZRK, NPBC) score above average in financials. Medical instruments (NUVA, HAE, TFX, PKI, HRC, DXCM) and biotech (GEVA, CRL, ACAD, ITMN, CLVS) are best in healthcare. In industrial goods, focus on industrial electrical equipment (LFUS, RBC, AOS) and aerospace/defense (CW, ESL, XLS, HXL). In services, concentrate on restaurants, trucking, and business services (MMS, DLX, CMPR, HCSG, GPN). The top technology groups are broadline semiconductor, semi equipment (SPIL, TER, ENTG), and technical & system software (TYL, CDNS, ACIW).