Best And Worst Small Caps - Thursday, June 1

  • The best small cap sector is technology.
  • The top small cap industry is brokerage.

The average small cap score is 46.67. Over the past four weeks this score has averaged 47.03. The typical small cap stock in our universe is trading -24.48% below its 52 week high, 0.73% above its 200 dma, and has 7.03 days to cover held short.

The best small cap sectors are technology and healthcare. Consumer goods score in line with the average universe score. Services, financials, industrials, and utilities score below average. Stay industry and stock specific in those baskets.

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The strongest scoring small cap industries are investment brokers, resorts & casinos (MCRI, PENN), home health care (AMED, ADUS), semi ICs (EMKR), and specialized health services (BEAT).

No basics baskets score above average. In consumer, concentrate on auto parts (MTOR) and processed & packaged goods. Focus on investment brokerage and credit services (WRLD) in financials. The strongest healthcare groups are home healthcare, specialized health services, and medical instruments (MMSI, LMAT, ICUI). In industrials, buy aerospace/defense (AVAV). The best services industries are resorts & casinos, education (STRA, UTI), and catalogs (GAIA). The top technology groups are semi ICs, semi equipment (OSIS, UTEK), and specialized semi (MPWR). Be aware, however, that the book-to-bill historically peaks in June.

 

Disclosure: None.

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