E Small Cap Best And Worst Report - July 24, 2014

Since 2010, the average return for our weekly best scoring small caps has outpaced the R2K by an average 764 bps in the following year. The top performers from our report one year ago include JAZZ up 92%, UEIC up 60%, and KFY up 51%.

  • The top scoring small cap sector is utilities.
  • The best small cap industry is P&C insurance.

The average small cap score is 50.1,. below the four week moving average score of 53.83. The average small cap is trading -26.6% below its 52 week high, -4.13% below its 200 dma, and has 8.41 days to cover held short.

Utilities, financials, basics, consumer, and industrials score above average. Technology scores in line. Services and healthcare score below average.

P&C insurer's (MIG, GLRE) score highly. Top and bottom line growth is supporting by rate increases. The basket enjoys solid seasonal tailwinds through summer storm season. Semi ICs (RFMD, DIOD) and semi equipment (OSIS, KLIC) are top scoring; however, lose their seasonal support from here. Management services (CRAI, NCI) and business software & services (MSTR, TSYS, NTCT) are also among the best scoring baskets this week.

In basics, gold (SA, NG) and independent oil & gas (GDP, SFY, CRK) score best. Textiles (PERY) and processed & packaged goods (DMND, BDBD) score highest in consumer goods. The top finance baskets are P&C insurers and regional banks (SNBC, CFNL). In healthcare, concentrate on home health (CHE, GTIV, AMED) and medical appliances (RTIX, ARTC, GB, OFIX). No industrial goods baskets score above average; however, aerospace/defense (AIR) score in line. The top services groups are management services, marketing services (MCHX), and rails (ARII, GBX). Total rail carloads (including intermodal) are up 4.6% year-over-year, supporting railcar orders.  In technology, buy semi ICs, business software, and semi equipment.


Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.