E Small Cap Best & Worst (ELLI, AFFX, ANAC)

The best scoring small caps from our weekly reports have outpaced the IWM by a median 684 bps in the following year.


·      The best scoring small cap sector is utilities.

·       The top scoring small cap industry is home furnishings & fixtures.

The average small cap score is 54.72, which is below the four week moving average score of 55.85. The average small cap stock is trading -26.87% below its 52 week high, 0.59% above its 200 dma, and has 8.31 days to cover held short.

The top scoring small cap sector is utilities. Technology, services, and healthcare also score above the universe average score. Consumer goods score in line. Financials, industrials, and basics score below average.

The best scoring small cap industry is home furnishings & fixtures (SCSS, ETH). Semi ICs (TQNT, PLXT, OVTI, RFMD, OPLK, EMKR) and specialized semi (QLGC, SIGM) are among the top scoring small cap baskets. Restaurants (BJRI, SONC, RRGB) offer upside opportunity through the fourth quarter EPS reporting season. Resorts and casinos (PENN, BYD) are strong scoring thanks to new capacity, rising room rates, and rising occupancy.

No small cap basics basket scores above average. In consumer goods concentrate on home furnishings and auto parts (SRI, MTOR, FSYS). In financials, investment brokers (GFIG) and credit services (EZPW, WRLD) score best. Buy home healthcare (ADUS, AFAM, CHE), medical instruments (HBIO, UTMD, IART, OSUR), and specialized health services (BEAT, USPH, HWAY) across healthcare. General building materials (HW)  score highest in industrials. Restaurants, resorts & casinos, and management services (CRAI, HURN, HSII) are best in services. In technology, concentrate on semi ICs, specialized semis, and scientific and technical instruments (AFFX, ALOG, FLDM, FARO).

Disclosure: None.

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