E Small Cap Best And Worst Report - May 28, 2015

The best scoring small caps from our weekly reports have outpaced the IWM by a median 602 bps in the following year.

  • The best scoring small cap sector is consumer goods.
  • The top scoring small cap industry is specialized semiconductor.

The average small cap score is 50.33 and that's above the four week average score of 49.47. The average small cap stock in our universe is trading -23.95% below its 52 week high, 0.64% above its 200 dma, and has 8.05 days to cover held short.

Consumer goods is the best mid cap sector. Utilities, technology, healthcare, and financials can be overweight. Industrial goods, services, and basic materials score below average and should be underweight.

The best small cap industry is specialized semiconductor (MPWR, QLGC). Resorts & casinos (MCRI, PENN, CNTY) offer upside. Industrial electrical equipment (BGC, ULBI) can be bought. Application software (ELLI, PFPT, LOGM, QLYS) is attractive. Home healthcare (CHE, AFAM, ADUS) stocks round out our best small cap industry ranking this week.

No small cap basics baskets score above average. Textiles (PERY, OXM, RCKY), auto parts (MTOR), and processed & packaged goods (DMND, MGPI) can be overweight in consumer. The top financials groups are credit services (WRLD), S&Ls (FBC, BRKL, WIBC, COLB), and P&C insurers (MIG, HMN, GLRE). In healthcare, home healthcare, specialized health services (USPH, IPCM, PRSC), and medical instruments (MMSI, LMNX, LMAT, ICUI) are best.  Industrial electrical equipment (BGC, ULBI) and aerospace/defense (TASR, AIR) can be bought in industrials. The strongest services industries include resorts & casinos, marketing services (ABTL, NCMI), and business services (EXAM, SCOR). In technology, specialized semiconductors, application software, and semi-ICs (EMKR) offer upside.

 

Disclosure: None.

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