Large Cap Report: Best Lead By Utilities Sector
Methodology
Our weekly best and worst reports show you stocks with the best potential returns over the coming 6 to 12 months. The score is calculated by fusing together the key drivers of price movement including, earnings beats, earnings growth, at-the-market insider buys, institutional activity, short ratio analysis, price to earnings analysis and calendar quarter seasonality. Those stocks appearing in our best list should be bought while those appearing in our worst list should be sold.
The highest scoring names in large cap from 1 year ago returned an average 17.87% in the past year. Performance has been led MGA up 70%, NOC up 68%, HAL up 47%, BA up 43%, and ORLY up 42%.
- The top large cap sector is utilities.
- Industrial metals & minerals is the top industry.
The average large cap score is 54.69 this week, below the four week moving average score of 57.87. The average large cap is trading -12.27% below its 52 week high, 0.90% above its 200 dma, has 4.1 days to cover short, and is expected to post EPS growth of 14.01% next year.
The best large cap sector is utilities, which offer robust seasonality ahead of summer. Basic materials have strengthened thanks to improving scores for oil & gas. Industrial goods also score above average and benefit from recovery in Europe. Consumer, healthcare, and technology score in line. Services and financials score below average.
LG CAP | 4/17/2014 | 4 Week MA | |||
Company Name | Symbol | Sector | INDUSTRY | SCORE | SCORE |
BEST | |||||
Eqt Corp | EQT | UTILITIES | GAS UTILITIES | 105 | 95 |
Kellogg Company | K | CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 105 | 91.25 |
Amphenol Corp | APH | TECHNOLOGY | DIVERSIFIED ELECTRONICS | 100 | 97.5 |
Burger King | BKW | SERVICES | RESTAURANTS | 100 | 96.25 |
EnCana Corp | ECA | BASIC MATERIALS | INDEPENDENT OIL & GAS | 100 | 95 |
Edison Intl | EIX | UTILITIES | ELECTRIC UTILITIES | 100 | 90 |
Edwards Lifesciences | EW | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 100 | 91.25 |
Goodyear Tire | GT | CONSUMER GOODS | RUBBER & PLASTICS | 100 | 80 |
Merck | MRK | HEALTHCARE | DRUG MANUFACTURERS | 100 | 88.75 |
Nextera Energy | NEE | UTILITIES | ELECTRIC UTILITIES | 100 | 92.5 |
Pentair | PNR | INDUSTRIAL GOODS | INDUSTRIAL EQUIPMENT & COMPONENTS | 100 | 88.75 |
Wisconsin Energy | WEC | UTILITIES | DIVERSIFIED UTILITIES | 100 | 90 |
Avalonbay Comm. | AVB | FINANCIALS | REITS | 95 | 87.5 |
Core Lab | CLB | BASIC MATERIALS | OIL & GAS EQUIPMENT & SERVICES | 95 | 91.25 |
DaVita Inc | DVA | HEALTHCARE | SPECIALIZED HEALTH SERVICES | 95 | 87.5 |
Eastman Chemical Co | EMN | BASIC MATERIALS | CHEMICALS- MAJOR DIVERSIFIED | 95 | 88.75 |
E O G Resources | EOG | BASIC MATERIALS | INDEPENDENT OIL & GAS | 95 | 85 |
Entergy Corp New | ETR | UTILITIES | ELECTRIC UTILITIES | 95 | 78.75 |
General Dynamics | GD | INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 95 | 91.25 |
Halliburton | HAL | BASIC MATERIALS | OIL & GAS EQUIPMENT & SERVICES | 95 | 88.75 |
Idexx Lab | IDXX | HEALTHCARE | DIAGNOSTIC SUBSTANCES | 95 | 87.5 |
Illumina | ILMN | HEALTHCARE | BIOTECHNOLOGY | 95 | 90 |
Eli Lilly | LLY | HEALTHCARE | DRUG MANUFACTURERS | 95 | 81.25 |
Microchip Tech | MCHP | TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 95 | 96.25 |
O'Reilly Auto | ORLY | SERVICES | AUTO PARTS STORES | 95 | 90 |
Reynolds American | RAI | CONSUMER GOODS | CIGARETTES | 95 | 87.5 |
Scana Corp New | SCG | UTILITIES | DIVERSIFIED UTILITIES | 95 | 86.25 |
Tyson Foods | TSN | CONSUMER GOODS | MEAT PRODUCTS | 95 | 92.5 |
Under Armor | UA | CONSUMER GOODS | TEXTILES | 95 | 82.5 |
Weatherfold International Inc | WFT | BASIC MATERIALS | OIL & GAS EQUIPMENT & SERVICES | 95 | 88.75 |
Xcel Energy Inc | XEL | UTILITIES | ELECTRIC UTILITIES | 95 | 87.5 |
Autozone | AZO | SERVICES | AUTO PARTS STORES | 90 | 88.75 |
Brown Forman Corp | BF.B | CONSUMER GOODS | BEVERAGES | 90 | 83.75 |
Cameco | CCJ | BASIC MATERIALS | INDUSTRIAL METALS & MINERALS | 90 | 78.75 |
Continental Resources | CLR | BASIC MATERIALS | OIL & GAS DRILLING & EXPLORATION | 90 | 88.75 |
Camden Ppty | CPT | FINANCIALS | REITS | 90 | 83.75 |
C V S Corp | CVS | SERVICES | DRUG STORES | 90 | 87.5 |
Quest Diagnostic | DGX | HEALTHCARE | MEDICAL LABORATORIES AND RESEARCH | 90 | 63.75 |
Walt Disney Company | DIS | SERVICES | ENTERTAINMENT- DIVERSIFIED | 90 | 88.75 |
Dover Corp | DOV | INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 90 | 82.5 |
The Directv Group Inc | DTV | TECHNOLOGY | COMMUNICATION EQUIPMENT | 90 | 83.75 |
Green Mtn. Coffee Roasters | GMCR | CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 90 | 83.75 |
Intel | INTC | TECHNOLOGY | SEMICONDUCTOR- BROAD LINE | 90 | 76.25 |
L3 Communications | LLL | SERVICES | SECURITY & PROTECTION SERVICES | 90 | 86.25 |
Lorillard Inc | LO | CONSUMER GOODS | CIGARETTES | 90 | 88.75 |
Mdu Res Group Inc | MDU | INDUSTRIAL GOODS | GENERAL BUILDING MATERIALS | 90 | 87.5 |
Public Service Ent. | PEG | UTILITIES | DIVERSIFIED UTILITIES | 90 | 85 |
P P L Corp | PPL | UTILITIES | ELECTRIC UTILITIES | 90 | 82.5 |
Quanta Svcs Inc | PWR | INDUSTRIAL GOODS | GENERAL CONTRACTORS | 90 | 82.5 |
Range Resources Corp | RRC | BASIC MATERIALS | INDEPENDENT OIL & GAS | 90 | 76.25 |
S L Green | SLG | FINANCIALS | REITS | 90 | 87.5 |
Constellation Brands | STZ | CONSUMER GOODS | BEVERAGES | 90 | 78.75 |
Transdigm Group Inc. | TDG | INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 90 | 90 |
WORST | |||||
Alcatel | ALU | TECHNOLOGY | COMMUNICATION EQUIPMENT | 15 | 23.75 |
A S M L Holding | ASML | TECHNOLOGY | 15 | 32.5 | |
Bed Bath & Beyond | BBBY | SERVICES | HOME FURNISHING & FIXTURES | 15 | 22.5 |
Fireeye Inc | FEYE | TECHNOLOGY | APPLICATION SOFTWARE | 15 | 31.25 |
Incyte Corp | INCY | HEALTHCARE | BIOTECHNOLOGY | 15 | 26.25 |
Leucadia Nat'l | LUK | CONGLOMERATES | CONGLOMERATES | 15 | 32.5 |
Mattel Inc | MAT | CONSUMER GOODS | TOYS & GAMES | 15 | 27.5 |
Nomura Holdings | NMR | FINANCIALS | INVESTMENT BROKERAGE | 15 | 21.25 |
Sei Investments Co | SEIC | FINANCIALS | INVESTMENT BROKERAGE | 15 | 30 |
Industrial metals & minerals (CCJ, CNX) is the top scoring large cap industry. Electric (NEE, EIX, XEL, ETR, PPL, DTE) and diversified utilities (WEC, SCG, PEG) score high ahead of summer peak demand. Cold weather supported spot market electricity prices in the first quarter. The EIA expects electricity production will climb 1.8% this year. Drug stores (CVS, RAD, WAG) benefit as patent expirations support margin. Higher script volume tied to reform driven insurance enrollment offers upside. Oil & gas pipelines (SE, WMB) round out the best scoring industries as revenue grows thanks to new lines and rising volume.
Basics are led by industrial metals & minerals, oil & gas pipelines, independent oil & gas (ECA, EOG, RRC, APC, SWN), and oil & gas equipment & services (WFT, HAL, CLB, BHI, SLB). In consumer goods, buy cigarettes (RAI, LO), processed & packaged goods (K, GMCR, CPB), and auto parts (MGA, ALV, BWA). The top financials groups include REITs (AVB, SLG, CPT, EQR), credit services (SLM, AXP, ADS), and foreign money center banks (BSAC, IBN). In healthcare, concentrate on healthcare plans (HUM, WLP), drugmakers (MRK, LLY, JNJ, AGN), and medical appliances (EW, ISRG, RMD). Every industrial goods basket scores above average, led by aerospace/defense (GD, TDG, RTN). Summer air show season offers upside catalysts as orders support vendors. Across services, buy drug stores, rails (UNP, CSX, KSU), and grocers (KR). Total rail carload volume is up 2.7% year-to-date from 2013. The biggest year over-year growth this year is coming from grains, which is up 15.4% from last year.
Consumer discretionary gets progressively weaker as weather warms. In technology, focus on diversified computer (TDC, IBM), telecom (CTL, T), semi ICs (TSM, MRVL) and specialized semi (MCHP, LSI). The SEMI book-to-bill historically peaks for the year in the second quarter. Electric, diversified, and foreign utilities (ENI, CIG) all score above average.
LG CAP INDUSTRY SCORE BY SECTOR | 4/17/2014 | |
Sector | Industry | SCORE |
BASIC MATERIALS | INDUSTRIAL METALS & MINERALS | 85.00 |
BASIC MATERIALS | OIL & GAS PIPELINES | 75.00 |
BASIC MATERIALS | INDEPENDENT OIL & GAS | 69.12 |
BASIC MATERIALS | OIL & GAS EQUIPMENT & SERVICES | 61.82 |
BASIC MATERIALS | CHEMICALS- MAJOR DIVERSIFIED | 60.83 |
BASIC MATERIALS | OIL & GAS DRILLING & EXPLORATION | 57.22 |
BASIC MATERIALS | MAJOR INTEGRATED OIL AND GAS | 53.75 |
BASIC MATERIALS | OIL & GAS REFINING & MARKETING | 53.33 |
BASIC MATERIALS | AGRICULTURAL CHEMICALS | 48.00 |
BASIC MATERIALS | GOLD | 45.83 |
BASIC MATERIALS | STEEL & IRON | 44.29 |
CONSUMER GOODS | CIGARETTES | 67.50 |
CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 65.00 |
CONSUMER GOODS | AUTO PARTS | 64.17 |
CONSUMER GOODS | BEVERAGES | 60.56 |
CONSUMER GOODS | FOOD - MAJOR DIVERSIFIED | 60.00 |
CONSUMER GOODS | TEXTILES | 55.56 |
CONSUMER GOODS | PERSONAL PRODUCTS | 45.00 |
CONSUMER GOODS | AUTO MANUFACTURERS- MAJOR | 41.67 |
FINANCIALS | REITS | 63.33 |
FINANCIALS | CREDIT SERVICES | 55.63 |
FINANCIALS | FOREIGN MONEY CENTER BANKS | 50.00 |
FINANCIALS | MONEY CENTER BANKS | 50.00 |
FINANCIALS | PROPERTY & CASUALITY INSURANCE | 50.00 |
FINANCIALS | LIFE INSURANCE | 46.67 |
FINANCIALS | REGIONAL BANKS | 46.50 |
FINANCIALS | INSURANCE BROKERS | 42.50 |
FINANCIALS | SAVINGS & LOANS | 42.50 |
FINANCIALS | ASSET MANAGEMENT | 34.38 |
FINANCIALS | INVESTMENT BROKERAGE | 31.25 |
HEALTHCARE | HEALTH CARE PLANS | 58.00 |
HEALTHCARE | DRUG MANUFACTURERS | 57.83 |
HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 53.75 |
HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 48.89 |
HEALTHCARE | BIOTECHNOLOGY | 45.42 |
INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 64.50 |
INDUSTRIAL GOODS | INDUSTRIAL EQUIPMENT & COMPONENTS | 61.25 |
INDUSTRIAL GOODS | FARM & CONSTRUCTION MACHINERY | 58.00 |
INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 55.71 |
SERVICES | DRUG STORES | 75.00 |
SERVICES | RAILROADS | 61.00 |
SERVICES | GROCERY STORES | 60.00 |
SERVICES | RESTAURANTS | 58.00 |
SERVICES | ENTERTAINMENT- DIVERSIFIED | 55.00 |
SERVICES | LODGING | 55.00 |
SERVICES | CATV SYSTEMS | 51.43 |
SERVICES | DEPARTMENT STORES | 50.00 |
SERVICES | BUSINESS SERVICES | 48.50 |
SERVICES | RESORTS AND CASINOS | 46.67 |
SERVICES | DISCOUNT, VARIETY STORES | 45.83 |
SERVICES | AIR DELIVERY & FREIGHT SERVICES | 45.00 |
SERVICES | DRUGS WHOLESALE | 45.00 |
SERVICES | APPAREL STORES | 41.43 |
TECHNOLOGY | DIVERSIFIED COMPUTER SYSTEMS | 68.33 |
TECHNOLOGY | TELECOM SERVICES - DOMESTIC | 66.67 |
TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 66.25 |
TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 66.25 |
TECHNOLOGY | DATA STORAGE DEVICES | 62.50 |
TECHNOLOGY | SEMICONDUCTOR- BROAD LINE | 58.75 |
TECHNOLOGY | DIVERSIFIED COMMUNICATION SERVICES | 58.33 |
TECHNOLOGY | BUSINESS SOFTWARE & SERVICES | 58.00 |
TECHNOLOGY | COMMUNICATION EQUIPMENT | 56.67 |
TECHNOLOGY | INTERNET INFORMATION PROVIDER | 56.67 |
TECHNOLOGY | SEMICONDUCTOR EQUIPMENT & MATERIALS | 55.00 |
TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 53.75 |
TECHNOLOGY | TECHINICAL & SYSTEM SOFTWARE | 50.00 |
TECHNOLOGY | APPLICATION SOFTWARE | 46.00 |
TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 45.00 |
TECHNOLOGY | WIRELESS COMMUNICATIONS | 35.63 |
UTILITIES | ELECTRIC UTILITIES | 79.29 |
UTILITIES | DIVERSIFIED UTILITIES | 76.00 |
UTILITIES | FOREIGN UTILITIES | 63.33 |
None.