Large Cap Best & Worst Report - December 22, 2015

  • The best large cap sector is consumer goods.
  • The top large cap industry is industrial equipment.

The average score across large cap is 57.91. The average large cap stock is trading -22.2% below its 52 week high, -6.16% below its 200 dma, has 4.5 days to cover held short, and is expected to grow EPS by 10.22% in the coming year.

Consumer goods, technology, healthcare, industrial goods, and financials score above average in large cap. Services score in line. Utilities and basics score below average.

Industrial equipment (ROP, PH, EMR) is top scoring and may benefit from demand being pulled forward ahead of future rate increases. REITs (PSA, UDR, PCL, HCP, HCN, ESS, DLR), application software (MSFT, CTRX, ADBE, SAP), cigarettes (RAI, PM, MO), and business services (ATHN, TSS, CSGP, V) score above average.

Ag chemicals (DD, MON, AGU) and major chemicals (APD, DOW, ASH) are the only two basics industries to score above average. Remain on the sidelines in energy until scores improve. Cigarettes, processed & packaged goods (CPB, SJM, MKC, K), and beverages (TAP, STZ, DPS) score best in consumer goods. The top financials industries include REITs, P&C insurers (ACE, CB, CINF, XL, TRV), and money center banks (JPM, BK, RY, PNC). Healthcare plans (AET, UNH, CI), medical instruments (BDX, XRAY, SYK), and medical appliances (ISRG, VAR, MDT) can be bought across healthcare. Industrial equipment and aerospace/defense (NOC, RTN, BA, COL) are top scoring in industrial goods. Business services, wholesale drugs (ABC, MCK), and air delivery & freight (UPS, CHRW) are strongest in services. The best technology groups include application software, broadline semi (INTC, MXIM, TXN), and semi equipment & materials (KLAC, LRCX, AMAT). Diversified utilities (SCG, ED, WEC) can also be bought.

 

Disclosure: None.

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