E Small Cap Best And Worst - September 15, 2016

  • The strongest small cap sector is financials.
  • The best small cap industry is specialized semi.

The average small cap score this week is 51.79. For perspective, the average small cap score over the past four weeks is 54.14. The average small cap stock in our universe is trading -26.16% below its 52 week high, 3.19% above its 200 dma, and has 8.08 days to cover held short.

The best sectors are financials, industrial goods, consumer goods, and technology. Healthcare, utilities, services, and basics score below average.

The following are the best and worst small cap stocks in our universe. 

The next chart shows how many stocks in our universe are trading greater than 5% below their 200 dma. Historically, when we get to these levels, markets risk increases. 

The next chart shows historical small cap score over time. 

The best small cap industry is specialized semiconductor (SIGM). Internet information (XOXO, BCOR), savings & loans (BRKL, PROV, NWBI), regional banks (SNBC, CFNL), and business software (EBIX, TSYS, NTCT) are also attractive. 

Oil & gas drilling & exploration (GIFI) and industrial metals/minerals are best in basics. The top consumer baskets are auto parts (SRI) and textiles (OXM). S&Ls, regional banks, and credit services (WRLD) are top scoring in financials. Focus on medical instruments (LMAT, MMSI, IART), specialized health services (USPH, BEAT), and medical appliances (ZLTQ, SPNC, NXTM, BABY, CRY) in healthcare. Industrial electrical (BGC, DAKT) and aerospace/defense (TASR) are strong scoring in industrials. Catalogs (NSIT) are the only above average scoring industry in services. Specialized semi, Internet information, and business software are best in technology. 

Disclosure: None.

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