Weekly Report: Stocks, ETFs, Utilities, Industrials

By Todd Campbell of E.B. Capital Markets

Saturday, October 25, 2014 5:26 PM EDT

Top scoring weekly returns: Buy and Hold 1 Year

Overall Average: 537 bps EXCESS				E. B. Capital Markets, LLC - Trailing 52 Week Best Scoring Stock Returns: 0% Turnover
Since 2010		ADRS			Large Cap				Mid Cap			Since 2010	Small Cap
	ADRS	EFA	EXCESS		LG CAP	SPX	EXCESS		MID CAP	SPX 400	EXCESS		SMALL CAP	R2K	EXCESS
Average	16.02%	9.93%	6.09%	Average	18.47%	15.05%	3.42%	Average	21.52%	16.76%	4.76%	Average	23.81%	16.58%	7.23%
Median	18.47%	13.30%	4.65%	Median	17.70%	16.28%	3.76%	Median	22.20%	17.66%	4.07%	Median	22.44%	16.30%	7.59%

NOTE:The ideal time horizon is 6 to 12 months from the time an idea appears in our ranking

SECTOR	RATIO
UTILITIES	64.10
INDUSTRIAL GOODS	58.77
CONSUMER GOODS	58.13
SERVICES	57.90
HEALTHCARE	57.53
FINANCIALS	57.20
TECHNOLOGY	55.53
BASIC MATERIALS	49.27

The top scoring sector across our universe this week is utilities. Industrial goods also score above average.

Consumer goods, services, healthcare, and financials score in line with the average universe score. Tilt toward large cap in healthcare and toward mid and small cap in financials.

Technology and basics score below average; stay industry and stock specific.

LARGE CAP			MID CAP			SMALL CAP
	# Stocks	Average		# Stocks	Average		# Stocks	Average
HEALTHCARE	78	63.2	UTILITIES	7	63.6	UTILITIES	4	67.5
SERVICES	124	62	SERVICES	103	61.1	INDUSTRIAL GOODS	32	55.9
CONSUMER GOODS	79	62	INDUSTRIAL GOODS	36	60.3	CONSUMER GOODS	38	53.9
UTILITIES	30	61.2	FINANCIALS	52	59.7	FINANCIALS	38	53.3
INDUSTRIAL GOODS	52	60.1	HEALTHCARE	49	59.3	TECHNOLOGY	108	51.3
FINANCIALS	106	58.6	CONSUMER GOODS	37	58.5	SERVICES	94	50.6
TECHNOLOGY	105	57.7	TECHNOLOGY	68	57.6	HEALTHCARE	175	50.1
BASIC MATERIALS	84	50	BASIC MATERIALS	37	52	BASIC MATERIALS	38	45.8

The following chart visualizes score by market cap and sector.

The following chart shows historical four, eight, and 12 week moving average scores

The following table shows the best and worst 10 sector/industry ETF's for November by average return over the past 10 years. Precious metals, healthcare, basics, and industrials have been among November's top performers, while crude/natgas, semi's, retail, and REITs have struggled. As is typical for this time of year, the SEMI book-to-bill contracted in September, falling to 0.94 (see table below for 10 year monthly average book-to-bill

Average Return (Past 10 November's)
Best	November	Worst	November
SLV	4.28%	XRT	-1.77%
GLD	3.80%	USO	-1.83%
XPH	2.63%	XSD	-1.98%
XLI	2.04%	ITB	-2.04%
TLT	2.03%	IYR	-2.05%
XLB	1.98%	KOL	-2.05%
XLE	1.96%	KCE	-2.13%
IBB	1.95%	RWR	-2.48%
IYJ	1.88%	KBE	-2.53%
IHF	1.80%	UNG	-6.49%

The following table shows small cap (IWM) versus big cap (SPY) this year. Following significant underperformance in September, the Russell 2000 is leading off the lows in October. Since small cap has lagged large cap in five of the past seven months and small cap is heading into its historically strongest season, there's a potential opportunity for significant upside. Position accordingly.

2014	January	February	March	April	May	June	July	August	September	October
R2K (IWM)	-2.77%	4.78%	-0.75%	-3.75%	0.78%	5.27%	-6.05%	4.82%	-5.93%	1.57%
SPX (SPY)	-3.52%	4.55%	0.83%	0.70%	2.32%	2.06%	-1.34%	3.95%	-1.38%	-0.30%
Excess	0.75%	0.23%	-1.57%	-4.44%	-1.54%	3.21%	-4.70%	0.88%	-4.55%	1.87%

UTILITIES

Historically, utilities have tended to perform in line with the broader market in November, but have outpaced the SPX in December, January, and March. This suggests that if utilities struggle in the coming weeks, there may be a solid opportunity to pick them up for excess return into early 2015.

Best Scoring Utilities				10/16/2014	10/23/2014	4 Week MA
Company Name	Symbol	Sector	INDUSTRY	SCORE	SCORE	SCORE

Consolidated Edison	ED	UTILITIES	DIVERSIFIED UTILITIES	110	110	96.25
Wisconsin Energy	WEC	UTILITIES	DIVERSIFIED UTILITIES	75	100	77.5
Southern Company	SO	UTILITIES	ELECTRIC UTILITIES	70	95	75
Northeast Utils	NU	UTILITIES	DIVERSIFIED UTILITIES	65	90	67.5
Teco Energy Inc	TE	UTILITIES	ELECTRIC UTILITIES	65	90	70
Cali. Water Svcs.	CWT	UTILITIES	WATER UTILITIES	65	90	70
Duke Energy	DUK	UTILITIES	ELECTRIC UTILITIES	85	85	72.5
Edison Intl	EIX	UTILITIES	ELECTRIC UTILITIES	60	85	65
Entergy Corp New	ETR	UTILITIES	ELECTRIC UTILITIES	60	85	65
Scana Corp New	SCG	UTILITIES	DIVERSIFIED UTILITIES	85	85	80
Xcel Energy Inc	XEL	UTILITIES	ELECTRIC UTILITIES	85	85	83.75
American Elec Pwr Inc	AEP	UTILITIES	ELECTRIC UTILITIES	80	80	81.25
Nisource Inc	NI	UTILITIES	DIVERSIFIED UTILITIES	75	80	78.75

INDUSTRIAL GOODS

Industrial goods have historically outperformed the broader market in November and December, suggesting that industrial goods stocks should be bought on weakness for upside into the final push into year end.

Best Scoring Industrial Goods				10/16/2014	10/23/2014	4 Week MA
Company Name	Symbol	Sector	INDUSTRY	SCORE	SCORE	SCORE

Lennar Corp	LEN	INDUSTRIAL GOODS	RESIDENTIAL CONSTRUCTION	80	110	88.75
U.S. Steel	X	INDUSTRIAL GOODS	METAL FABRICATION	100	105	102.5
Weyerhaeuser Co.	WY	INDUSTRIAL GOODS	LUMBER, WOOD PRODUCTION	70	100	80
Simpson Manufacturing	SSD	INDUSTRIAL GOODS	SMALL TOOLS & ACCESSORIES	75	90	78.75
Boeing	BA	INDUSTRIAL GOODS	AEROSPACE/DEFENSE PRODUCTS & SERVICES	75	80	77.5
Ingersoll Rand	IR	INDUSTRIAL GOODS	DIVERSIFIED MACHINERY	65	80	73.75
Pall Corp	PLL	INDUSTRIAL GOODS	DIVERSIFIED MACHINERY	70	75	73.75
Stericycle	SRCL	INDUSTRIAL GOODS	WASTE MANAGEMENT	70	75	72.5
Brunswick Corp	BC	INDUSTRIAL GOODS	DIVERSIFIED MACHINERY	60	75	68.75
Curtiss-Wright Corp.	CW	INDUSTRIAL GOODS	AEROSPACE/DEFENSE PRODUCTS & SERVICES	70	75	71.25
Esterline Tech	ESL	INDUSTRIAL GOODS	AEROSPACE/DEFENSE PRODUCTS & SERVICES	60	75	68.75
NVR Inc	NVR	INDUSTRIAL GOODS	RESIDENTIAL CONSTRUCTION	70	75	71.25
Terex Corp	TEX	INDUSTRIAL GOODS	FARM & CONSTRUCTION MACHINERY	70	75	72.5
Orbital Sciences	ORB	INDUSTRIAL GOODS	AEROSPACE/DEFENSE PRODUCTS & SERVICES	70	75	71.25

TOP SCORIN

LG CAP		10/23/2014	4 Week MA	MID CAP		10/23/2014	4 Week MA
Symbol	Sector	SCORE	SCORE	Symbol	Sector	SCORE	SCORE
BEST				BEST
ED	UTILITIES	110	96.25	IRF	TECHNOLOGY	105	102.5
HCN	FINANCIALS	110	98.75	MNK	HEALTHCARE	105	101.25
LEN	INDUSTRIAL GOODS	110	88.75	VPRT	SERVICES	105	103.75
BKW	SERVICES	105	100	X	INDUSTRIAL GOODS	105	102.5
NKE	CONSUMER GOODS	105	103.75	AKRX	HEALTHCARE	100	97.5
OTEX	TECHNOLOGY	105	102.5	CBRL	SERVICES	100	91.25
AGN	HEALTHCARE	100	103.75	DNB	TECHNOLOGY	100	91.25
BLL	CONSUMER GOODS	100	83.75	HNI	CONSUMER GOODS	100	77.5
CSX	SERVICES	100	102.5	HSNI	SERVICES	100	98.75
FB	TECHNOLOGY	100	97.5	NNI	FINANCIALS	100	91.25
LB	SERVICES	100	95	WWAV	CONSUMER GOODS	100	91.25
LSI	TECHNOLOGY	100	100	CNC	HEALTHCARE	95	93.75
SIAL	HEALTHCARE	100	102.5	DV	SERVICES	95	73.75
SSYS	TECHNOLOGY	100	88.75	HTLD	SERVICES	95	85
UNH	HEALTHCARE	100	85	KNX	SERVICES	95	93.75
WEC	UTILITIES	100	77.5	MSG	SERVICES	95	86.25
WY	INDUSTRIAL GOODS	100	80	ODFL	SERVICES	95	86.25
YHOO	TECHNOLOGY	100	98.75	TMH	SERVICES	95	93.75
AAP	SERVICES	95	80	ARE	FINANCIALS	90	72.5
BBY	SERVICES	95	85	BYI	SERVICES	90	92.5
GILD	HEALTHCARE	95	97.5	CHH	SERVICES	90	80
GMCR	CONSUMER GOODS	95	93.75	MKTX	FINANCIALS	90	88.75
HCA	HEALTHCARE	95	91.25	MOH	HEALTHCARE	90	68.75
INFY	TECHNOLOGY	95	98.75	MTN	SERVICES	90	90
KSU	SERVICES	95	96.25	PBYI	HEALTHCARE	90	85
NWL	CONSUMER GOODS	95	92.5	PNRA	SERVICES	90	71.25
RDY	HEALTHCARE	95	95	SBH	SERVICES	90	73.75
SO	UTILITIES	95	75	SSD	INDUSTRIAL GOODS	90	78.75
TWX	SERVICES	95	80	STLD	BASIC MATERIALS	90	78.75
UNP	SERVICES	95	86.25	TE	UTILITIES	90	70
WLP	HEALTHCARE	95	95	TYL	TECHNOLOGY	90	71.25
WRB	FINANCIALS	95	96.25	ASBC	FINANCIALS	85	81.25
AAPL	TECHNOLOGY	90	91.25	DPZ	SERVICES	85	65
BMRN	HEALTHCARE	90	87.5	HAIN	CONSUMER GOODS	85	80
CELG	HEALTHCARE	90	87.5	HNT	HEALTHCARE	85	82.5
CHRW	SERVICES	90	81.25	JNS	FINANCIALS	85	80
CME	SERVICES	90	92.5	OZRK	FINANCIALS	85	81.25
CP	SERVICES	90	88.75	WEN	SERVICES	85	81.25
HD	SERVICES	90	92.5	DXCM	HEALTHCARE	80	78.75
LRCX	TECHNOLOGY	90	80	EAT	SERVICES	80	66.25
MJN	CONSUMER GOODS	90	81.25	HPY	SERVICES	80	82.5
NU	UTILITIES	90	67.5	ICLR	HEALTHCARE	80	78.75
OCR	SERVICES	90	87.5	KRC	FINANCIALS	80	78.75
VRSN	TECHNOLOGY	90	96.25	LOCK	TECHNOLOGY	80	76.25
				MCRS	TECHNOLOGY	80	80
				PRXL	SERVICES	80	77.5
				RBA	SERVICES	80	76.25
				VRNT	TECHNOLOGY	80	80
SMALL CAP		10/23/2014	4 Week MA	ADRS		10/20/2014	4 Week MA
Symbol	Sector	SCORE	SCORE	Symbol	COUNTRY	SCORE	SCORE
BEST				BEST
ANAC	HEALTHCARE	100	98.75	INFY	India	100	103.75
RGEN	HEALTHCARE	100	100	JST	China	95	95.00
AHS	HEALTHCARE	95	93.75	SMI	Hong Kong	95	93.75
AVID	CONSUMER GOODS	95	91.25	AMX	México	90	91.25
CMN	HEALTHCARE	95	86.25	COGO	China	90	90.00
EVOL	TECHNOLOGY	95	76.25	OMAB	México	90	92.50
MEI	TECHNOLOGY	95	85	RDY	India	90	90.00
UEIC	CONSUMER GOODS	95	92.5	AMOV	México	85	86.25
XRTX	TECHNOLOGY	95	95	CEA	China	85	65.00
AFAM	HEALTHCARE	90	88.75	KEP	Korea	85	87.50
AMAG	HEALTHCARE	90	88.75	ICLR	Ireland	80	78.75
CCRN	SERVICES	90	88.75	LONG	China	80	78.75
CTRN	SERVICES	90	78.75	BIDU	China	75	72.50
CWT	UTILITIES	90	70	IBA	México	75	78.75
FORR	SERVICES	90	68.75	IBN	India	75	55.00
HSII	SERVICES	90	81.25	NTES	China	75	71.25
USPH	HEALTHCARE	90	76.25	TEO	Argentina	75	67.50
VASC	HEALTHCARE	90	90
ARTC	HEALTHCARE	85	85
ATMI	TECHNOLOGY	85	85
BLT	CONSUMER GOODS	85	81.25
CENX	BASIC MATERIALS	85	82.5
FURX	SERVICES	85	85
GFIG	FINANCIALS	85	85
LHCG	HEALTHCARE	85	71.25
MDCI	HEALTHCARE	85	85
MSTR	TECHNOLOGY	85	70
NLS	CONSUMER GOODS	85	76.25
OSUR	HEALTHCARE	85	65
XNPT	HEALTHCARE	85	75
AMRI	HEALTHCARE	80	78.75
ANGO	HEALTHCARE	80	75
ARC	SERVICES	80	77.5
AUXL	HEALTHCARE	80	81.25
BABY	HEALTHCARE	80	78.75
BELFB	TECHNOLOGY	80	83.75
BSTC	HEALTHCARE	80	78.75
CRAI	SERVICES	80	77.5
EBS	HEALTHCARE	80	68.75
GTIV	HEALTHCARE	80	83.75
ICUI	HEALTHCARE	80	78.75
INFN	TECHNOLOGY	80	70
INSY	HEALTHCARE	80	78.75
JAKK	CONSUMER GOODS	80	57.5
MNDO	TECHNOLOGY	80	77.5
NTRI	SERVICES	80	77.5
SABA	TECHNOLOGY	80	80
UFCS	FINANCIALS	80	60

Disclosure: None.

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