E Small Cap Best & Worst Report - June 26, 2014

The highest scoring names in small cap from 1 year ago (6/27/2013) returned 352 bps more than the Russell 2000. The best performers have been CRZO up 138%, QCOR up 104%, UHAL up 78%, MPWR up 74%, and FSS up 64%.

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

The average small cap score is 49.05, above the four week moving average of 47.65. The average small cap stock is trading -23.8% below its 52 week high, -0.23% below the 200 dma, and has 8.42 days to cover held short.

Utilities, industrial goods, basic materials, and consumer goods score above average. healthcare and financials score below in line. Services and technology score below average.

P&C insurers (HMN, STFC, MIG) score best across our small cap universe. Typically, P&C insurers enjoy seasonal tailwinds tied to storm season. Truckers (SAIA, YRCW) offer upside on rising truck tonnage and spot pricing. Auto parts (MTOR, SRI) demand is recovering in Europe as passenger and commercial vehicle registrations climb. General building materials (USLM) offer upside. Diversified electronics (SIMO, MEI) score strongly too.

In basics, independent oil & gas (SFY, GDP, CRK) scores above average. In consumer goods, focus on auto parts and processed & packaged goods (BDBD). P&C insurers and regional banks (MBWM, SNBC) score above average. In healthcare, buy medical instruments (CMN, LMNX, HTWR). The top industrial goods group is general building materials (USLM). In services, buy trucking, restaurants (BJRI, DAVE), and railroads (GBX). The best scoring technology industries include diversified electronics, semi ICs (DIOD, RFMD, PLXT), and printed circuit boards (BHE, SANM).

 

Disclosure: None.

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