Mid Cap Report: The Best And Worst
The best scoring mid caps from one year ago (1/30/2013) averaged 362 bps of excess over the S&P 400, with 0% turnover. The top performers include ILMN up 172%, NFLX up 130%, VRX up 100%, ACXM up 78%, and HBI up 77%.
- The best scoring mid cap sector is industrial goods.
- The top scoring mid cap industry is trucking
The average mid cap score is 66.72 this week, below the four week moving average score of 68.23. The average mid cap stock is trading -13.3% below its 52 week high, 3.39% above its 200 dma, has 7.35 days to cover short, and is expected to see EPS growth of 17% next year.
The top scoring basket is industrial goods. Consumer and healthcare also score highly. And technology moves to above average for the first time in months. Financials, services, basics, and utilities score below average.
| MID CAP | 1/30/2014 | 4 Week MA | |||
| Company Name | Symbol | Sector | INDUSTRY | SCORE | SCORE |
| BEST | |||||
| Int'l Rectifier | IRF | TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 110 | 108.75 |
| Teradyne | TER | TECHNOLOGY | SEMICONDUCTOR EQUIPMENT & MATERIALS | 110 | 103.75 |
| Conseco Inc | CNO | FINANCIALS | ACCIDENT & HEALTH INSURANCE | 105 | 105 |
| Ultra Petroleum Corp. | UPL | BASIC MATERIALS | INDEPENDENT OIL & GAS | 105 | 83.75 |
| Choice Hotels International, Inc | CHH | SERVICES | LODGING | 100 | 97.5 |
| Coherent Inc | COHR | TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 100 | 96.25 |
| Diebold Inc | DBD | CONSUMER GOODS | BUSINESS EQUIPMENT | 100 | 93.75 |
| Dillard's Inc. | DDS | SERVICES | DEPARTMENT STORES | 100 | 100 |
| First Fin'l Bankshares | FFIN | FINANCIALS | REGIONAL BANKS | 100 | 97.5 |
| Heartland Express | HTLD | SERVICES | TRUCKING | 100 | 101.25 |
| I T T Corp | ITT | INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 100 | 101.25 |
| Littelfuse | LFUS | INDUSTRIAL GOODS | INDUSTRIAL ELECTRICAL EQUIPMENT | 100 | 98.75 |
| Medidata Solutions | MDSO | TECHNOLOGY | HEALTHCARE INFORMATION SERVICES | 100 | 98.75 |
| Middleby Corp | MIDD | INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 100 | 98.75 |
| Manitowoc Company Inc | MTW | INDUSTRIAL GOODS | FARM & CONSTRUCTION MACHINERY | 100 | 98.75 |
| NVR Inc | NVR | INDUSTRIAL GOODS | RESIDENTIAL CONSTRUCTION | 100 | 97.5 |
| OpenTable | OPEN | TECHNOLOGY | INTERNET INFORMATION PROVIDER | 100 | 98.75 |
| Stifel Fin'l | SF | FINANCIALS | INVESTMENT BROKERAGE | 100 | 98.75 |
| Terex Corp | TEX | INDUSTRIAL GOODS | FARM & CONSTRUCTION MACHINERY | 100 | 98.75 |
| Dealertrack Hldgs Inc | TRAK | TECHNOLOGY | APPLICATION SOFTWARE | 100 | 98.75 |
| Amerco Inc | UHAL | SERVICES | RENTAL & LEASING SERVICES | 100 | 98.75 |
| Wintrust Fin'l | WTFC | FINANCIALS | REGIONAL BANKS | 100 | 98.75 |
| Transaction Sys Architects | ACIW | TECHNOLOGY | TECHINICAL & SYSTEM SOFTWARE | 95 | 92.5 |
| Align Tech | ALGN | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 95 | 93.75 |
| Arris Group | ARRS | TECHNOLOGY | COMMUNICATION EQUIPMENT | 95 | 95 |
| Brandywine Realty Trust | BDN | FINANCIALS | REITS | 95 | 77.5 |
| Brocade Communications Systems | BRCD | TECHNOLOGY | DATA STORAGE DEVICES | 95 | 95 |
| Commercial Metals Co | CMC | BASIC MATERIALS | STEEL & IRON | 95 | 95 |
| Columbia Sportswear | COLM | CONSUMER GOODS | TEXTILES | 95 | 96.25 |
| Carrizo Oil and Gas Inc | CRZO | BASIC MATERIALS | INDEPENDENT GAS & OIL | 95 | 92.5 |
| Carlisle Co's | CSL | CONSUMER GOODS | RUBBER & PLASTICS | 95 | 93.75 |
| Curtiss-Wright Corp. | CW | INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 95 | 95 |
| Domino's Pizza Inc | DPZ | SERVICES | FOOD WHOLESALE | 95 | 96.25 |
| Esterline Tech | ESL | INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 95 | 93.75 |
| Hub Group Inc | HUBG | SERVICES | AIR DELIVERY & FREIGHT SERVICES | 95 | 96.25 |
| Lennox Int'l | LII | CONSUMER GOODS | APPLIANCES | 95 | 93.75 |
| Olin Corp | OLN | BASIC MATERIALS | COPPER | 95 | 92.5 |
| Oshkosh Truck | OSK | CONSUMER GOODS | TRUCKS & OTHER VEHICLES | 95 | 93.75 |
| Regal Entertainment | RGC | SERVICES | MOVIE PRODUCTION, THEATERS | 95 | 77.5 |
| S P X Corp. | SPW | INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 95 | 93.75 |
| Tempur Pedic | TPX | CONSUMER GOODS | HOME FURNISHING & FIXTURES | 95 | 95 |
| Trinity Industries Inc | TRN | SERVICES | RAILROADS | 95 | 92.5 |
| Toro Corp | TTC | INDUSTRIAL GOODS | SMALL TOOLS & ACCESSORIES | 95 | 95 |
| Wendy's International Inc | WEN | SERVICES | RESTAURANTS | 95 | 93.75 |
| WORST | |||||
| Casey's Gen'l Store | CASY | SERVICES | GROCERY STORES | 20 | 23.75 |
| Thoratec | THOR | HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 20 | 30 |
| Taubman Centers | TCO | FINANCIALS | REITS | 25 | 32.5 |
| Advanced Micro Devices | AMD | TECHNOLOGY | SEMICONDUCTOR- BROAD LINE | 30 | 62.5 |
| Cooper Tire and Rubber Co | CTB | CONSUMER GOODS | RUBBER & PLASTICS | 30 | 32.5 |
| Dsw Inc Cl A | DSW | SERVICES | APPAREL STORES | 30 | 31.25 |
| Fairchild Semi | FCS | TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 30 | 27.5 |
| Hudson City Bancorp | HCBK | FINANCIALS | SAVINGS & LOANS | 30 | 35 |
| J D S Uniphase | JDSU | TECHNOLOGY | COMMUNICATION EQUIPMENT | 30 | 30 |
| Newfield Expl Co | NFX | BASIC MATERIALS | INDEPENDENT OIL & GAS | 30 | 33.75 |
| Thor Industries | THO | CONSUMER GOODS | RECREATIONAL VEHICLES | 30 | 30 |
| Texas Roadhouse | TXRH | SERVICES | RESTAURANTS | 30 | 37.5 |
Commentary:
The average mid cap has seen short interest climb by 1.06 days to cover since November. Mid cap short interest is 0.95 higher than this time last year. Since November, the largest increase in days-to-cover has occurred in consumer, up 2.19 days and industrials, up 1.93 days.
The best scoring mid cap industry is trucking (HTLD, ODFL). Tight capacity and slow and steady volume growth support pricing. Education (LOPE, DV) scores highly. Broadline semi (CAVM) is top scoring in line with the historical spring peak in book-to-bill. Investment brokers (SF, GHL) and technical & system software (ACIW, TYL, MCRS) round out the best scoring mid cap industries this week.
None of the mid cap basics industries score above the universe average this week. Focus on large cap instead. In consumer, buy business equipment (DBD, PAY) and processed & packaged goods (HAIN, FLO). The top financials baskets include investment brokers, accident & health insurance (CNO, AIZ), and regional banks (WTFC, FFIN, SIVB, OZRK). In healthcare, buy biotechnology (TECH, QCOR). Every industrials group scores above average. Focus on industrial electrical equipment (LFUS, RBC) and residential construction (NVR, RYL). 428,000 new homes were sold in 2013, up 16.4% from 2012.
In services, concentrate on trucking, education, and restaurants (WEN, EAT, PZZA, BWLD). The top technology industries are broadline semiconductor, technical & system software, and semi equipment & materials (TER).
| MID CAP INDUSTRY SCORE BY SECTOR | 1/30/2014 | |
| Sector | INDUSTRY | SCORE |
| BASIC MATERIALS | SYNTHETICS | 67.50 |
| BASIC MATERIALS | STEEL & IRON | 66.43 |
| BASIC MATERIALS | OIL & GAS DRILLING & EXPLORATION | 62.50 |
| BASIC MATERIALS | INDEPENDENT OIL & GAS | 60.00 |
| BASIC MATERIALS | OIL & GAS EQUIPMENT & SERVICES | 58.33 |
| BASIC MATERIALS | INDUSTRIAL METALS & MINERALS | 53.33 |
| BASIC MATERIALS | SPECIALTY CHEMICALS | 51.67 |
| CONSUMER GOODS | BUSINESS EQUIPMENT | 75.00 |
| CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 75.00 |
| CONSUMER GOODS | TEXTILES | 71.00 |
| CONSUMER GOODS | AUTO PARTS | 65.00 |
| CONSUMER GOODS | PACKAGING & CONTAINERS | 65.00 |
| FINANCIALS | INVESTMENT BROKERAGE | 80.00 |
| FINANCIALS | ACCIDENT & HEALTH INSURANCE | 76.67 |
| FINANCIALS | REGIONAL BANKS | 72.27 |
| FINANCIALS | ASSET MANAGEMENT | 70.00 |
| FINANCIALS | REITS | 57.94 |
| FINANCIALS | SURETY & TITLE INSURANCE | 51.67 |
| HEALTHCARE | BIOTECHNOLOGY | 68.75 |
| HEALTHCARE | HOSPITALS | 66.25 |
| HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 64.00 |
| INDUSTRIAL GOODS | INDUSTRIAL ELECTRICAL EQUIPMENT | 77.50 |
| INDUSTRIAL GOODS | RESIDENTIAL CONSTRUCTION | 76.67 |
| INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 75.00 |
| INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 68.75 |
| SERVICES | TRUCKING | 86.67 |
| SERVICES | EDUCATION & TRAINING SERV | 85.00 |
| SERVICES | RESTAURANTS | 73.57 |
| SERVICES | MOVIE PRODUCTION, THEATERS | 71.67 |
| SERVICES | DEPARTMENT STORES | 68.33 |
| SERVICES | RENTAL & LEASING SERVICES | 66.25 |
| SERVICES | BUSINESS SERVICES | 64.00 |
| SERVICES | APPAREL STORES | 62.00 |
| SERVICES | TECHNICAL SERVICES | 61.67 |
| SERVICES | SPECIALTY RETAIL, OTHER | 58.75 |
| SERVICES | AUTO DEALERSHIPS | 43.33 |
| TECHNOLOGY | SEMICONDUCTOR-BROAD LINE | 82.50 |
| TECHNOLOGY | TECHNICAL & SYSTEM SOFTWARE | 80.00 |
| TECHNOLOGY | SEMICONDUCTOR EQUIPMENT & MATERIALS | 76.67 |
| TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 74.00 |
| TECHNOLOGY | BUSINESS SOFTWARE & SERVICES | 72.78 |
| TECHNOLOGY | COMPUTER PERIPHERALS | 63.00 |
| TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 58.33 |
| TECHNOLOGY | COMMUNICATION EQUIPMENT | 57.00 |
| TECHNOLOGY | INFORMATION & DELIVERY SERVICES | 56.67 |
| TECHNOLOGY | PRINTED CIRCUIT BOARDS | 48.33 |
| UTILITIES | GAS UTILITIES | 55.00 |
None.
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