E Weekly Stock Report

Top scoring weekly returns:  Buy and Hold 1 Year

Utilities remains the top scoring sector. Industrial goods, consumer goods, and basic materials score in line with the average universe score.

Financials, healthcare, services, and technology score below average.

In industrial goods, focus on large and small cap. In financials, mid and small cap score better relative to peers than large cap. Due to summer seasonality, consumer discretionary typically faces headwinds through August.

The following chart visualizes score by market cap and sector.

The following chart shows historical four, eight, and 12 week average score since 2010. Historically, risk reward shifts to favor buying risk when the blue line (four week average) crosses above the red and green line.


Utilities continue to score highly. The following chart suggests that buying weakness in May is typically rewarded in June. 

Watch for natural gas prices to head higher, lending support to marginal electricity prices into summer peak demand. The average utility stock in our coverage is expected to post EPS growth of 5.9% next year.

U.S. residential prices are forecast by the EIA to average 12.47 cents per kwh in 2014, up from 12.12 cents in 2013, and 11.88 cents in 2012. The following chart shows net electricity generation by month.  Annual peak generation occurs in July.

The following are the top scoring stocks across our utilities industry.

Best Scoring by Universe

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