Mid Cap Best And Worst Report - October 29, 2014

Since 2010, the best scoring names in our weekly mid cap reports have outpaced the S&P 400 by a median 4.07% in the following year. The best performers from our list from 1 year ago.

 

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

The average mid cap score is 62.15, above the four week moving average score of 58.03. The average mid cap stock is trading -17.55% below its 52 week high, -1.76% below its 200 dma, has 6.96 days to cover held short, and is expected to grow EPS by 18.3% next year.

Utilities, industrial goods, healthcare, financials, and services score above average. Technology and consumer goods score in line. Basics score below average.

Trucking (ODFL, KNX, HTLD) volume continues to support spot rates. LTL rate increases were announced by UPS, FedEx, Con-Way, and ABF in the past week. The Cass Truckload Linehaul Index increased 6.7% year-over-year in September. Residential (NVR, RYL) offers upside as new home sales grew 17% YoY in September. Business services (VPRT, GPN, HMSY, PRAA, HPY) scores strongly. Investment brokers (MKTX, SF) benefit from asset rotation and volatility inspired volume. Data analytics and shifts toward online process and practice management support technical & system software (TYL, CDNS).

In basics, only synthetics (MTX, CMP) score above average. The top consumer goods groups are business equipment (HNI) and processed & packaged goods (HAIN). In financials, buy investment brokers, regional banks (OZRK, ASBC, NPBC, HBHC), and accident & health insurers (AFL, CNO). Commercial and industrial loan activity supports loan bank profit expansion with C&I loans at commercial banks increasing to $1,732 billion in September from $1,676 billion in May.

In healthcare, focus on medical instruments (HRC, NUVA, DXCM). Every mid cap industrials group is above average; focus on residential construction and aerospace/defense (MOGA, TDY, ESL, HXL, CW). The top services groups are trucking, business services, and auto dealers (GPI). In technology, buy technical & system software, semi ICs (IRF, MSCC), and business software (SSNC, VRNT, CTSH).

Disclosure: None.

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