Best And Worst In Large Cap - Tuesday, March 28
- The best large cap sector is technology.
- The top scoring industry is cigarettes.
The average large cap score is 59.71 and the average score over the past four weeks is 66.24. IMPORTANT: Scores rolled to reflect second quarter seasonality. The average large cap stock in our coverage is trading -11.94% below its 52 week high, 2.92% above its 200 dma, has 4.15 days to cover held short, and is expected to grow EPS by 13.3% in the coming year.
After shifting to second quarter seasonality, the top scoring large cap sectors are technology, utilities, healthcare, and industrials. Financials, consumer, services, and basic materials score below average - be industry and stock specific in those groups this quarter.
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Healthcare has historically been the best sector for seasonal upside in the second quarter.
The following chart shows historical score over time. The average score has declined on the move to second quarter seasonality, which offers less support to scores than in the first quarter.
The best scoring large cap industries this week are cigarettes (MO, RAI, PM), internet software (EQIX, FFIV, CTXS, CRM, AMZN), scientific & technical instruments (WAT, MTD, A), semi ICs (TSM, AVGO, SWKS), and insurance brokers (AJG, MMC).
In basics, only major chemicals (FMC, EMN, SHW) score above average. Cigarettes, processed & packaged goods (PEP, MJN, MKC), and auto parts (LEA, BWA) are best in consumer goods. In financials, focus on insurance brokers, credit services (SLM, ADS, EFX, DFS), and money center banks (WFC, RY, JPM). Concentrate on medical instruments (COO, BCR, BAX), healthcare plans (UNH, CI, ANTM), and drugmakers (ABBV, JNJ, LLY, VRTX) in healthcare. Aerospace/defense (BA, GD), diversified machinery (ITW, IR), and industrial equipment (PH) are best in industrials. The top services industries include CATV systems (CMCSA, VIAB), restaurants (MCD), and diversified entertainment (TWX, DIS). Internet software, scientific & technical instruments, and semi ICs are high scoring in technology. Electric utilities (EIX, DTE, NRG, AEP, XEL) and diversified utilities (AEE) are also intriguing on the shift to Q2 seasonality.
Disclosure: None.