Small Cap Top & Bottom Picks - July 7, 2016

  • The strongest small cap sectors are utilities and financials.
  • The best small cap industry is Internet information providers.

The average small cap score this week is 51.52. The typical small cap stock is trading -31.26% below its 52 week high, 1.9% above its 200 dma, and has 8.34 days to cover held short.

Utilities and financials are the strongest scoring small cap sectors. Basics, industrials, and technology also score high. Healthcare scores in line with the average small cap score. Consumer and services score below average.

The following chart shows historical sector scores going back to 2008. 

The best small cap industry is Internet information providers (XOXO, BCOR). Specialized semi (QLGC, MPWR), diversified electronics (SIMO, MEI), gold (NG, SA, DRD), and business software (EBIX, TSYS) score high too.  

The top scoring small cap industry in basics is gold. Steel & iron (AKS, ZEUS) and industrial metals & minerals (BOOM) are also top scoring. In consumer goods, focus on home furnishings and fixtures (ETH) and processed & packaged goods. Credit services (WRLD, EZPW), S&Ls (NWBI, FBC, BRKL), and regional banks (SNBC, CFNL) offer upside in financials. Home healthcare (AMED, LHCG), specialized health (AHS, USPH, BEAT), and medical appliances (SPNC, NXTM, CRY, OFIX, ABMD) are best in healthcare. general building materials (NCS) and aerospace/defense (TASR) are top scoring across industrials. Catalogs (FLWS) and staffing (CCRN) are attractive in services. The highest scoring industries in technology are Internet information providers, specialized semi, and diversified electronics. 

Disclosure: None.

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