Large Cap Best & Worst Report - July 19, 2016

  • The best large cap sectors are utilities and healthcare.
  • The highest scoring large cap industry is insurance brokers.

The average large cap score is 68.12. The average large cap stock in our universe is trading -13.73% below its 52 week high, 7.64% above its 200 dma, has 4.45 days to cover held short, and is expected to grow its EPS by 14.37% in the coming year.

The best scoring sector in our large cap universe is utilities. Healthcare, industrial goods, and technology are also strong scoring. Services and consumer goods score in line with the average large cap universe score. Financials and basic materials score below average.

The best large cap industry is insurance brokers (AJG, MMC, AON). Domestic telecom (VZ, T, CTL), diversified communication (AMT, CCI), cigarettes (PM, RAI, MO), and scientific and technical instruments (MTD, WAT, GRMN) are also top scoring. 

The best basics baskets are major chemicals (APD, SHW, FMC), ag chemicals (DD, AGU, MON), and steel & iron (NUE, GGB, PKX). In consumer goods, concentrate on cigarettes, processed & packaged goods (K, PEP, SJM, MJN), and major food (MDLZ). The best financials industries are insurance brokers, REITs (HCN, HCP, BXP, KIM, FRT), and money center banks (RY, BNS, STI, BAC). In healthcare, focus on medical instruments (BCR, SYK, COO, BAX), drugmakers (PFE, ABBV, JNJ, RDY, MRK, ABT, LLY), and medical appliances (VAR, EW, STJ, RMD). Industrial equipment (EMR, PH), aerospace/defense (RTN, NOC, HON, TDG, LMT), and diversified machinery (ITW, IR, DOV) are top scoring in industrial goods. Discount stores (WMT, DLTR, COST), lodging (MAR, WYN), and business services (CTAS, IRM, CSGP, FLT, FIS) can be bought in services. Domestic telecom, diversified communication systems, and scientific & technical instruments can be overweight in technology. 

Disclosure: None.

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