Large Cap Best & Worst Report - July 26, 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 66.54. The average large cap stock in our universe is trading -13.47% below its 52 week high, 7.28% above its 200 dma, has 4.42 days to cover held short, and is expected to grow earnings by 14.36% next year.

The strongest scoring sectors are utilities, healthcare, and technology. Services, consumer goods, and industrial goods score in line with the averagelarge cap score. Financials and basics score below average. 

The following are the best and worst large cap stocks to buy by score. 

The next chart shows historical large cap sector scores over time. 

The highest scoring industry in large cap is insurance brokers (AJG, MMC). Domestic telecom (VZ, T, CTL), diversified computer systems (IBM, TDC), diversified communication (CCI, AMT), and Internet software (OTEX, AMZN, FFIV, CTXS, VRSN) are also top scoring. 

Only major chemicals (APD, FMC, DOW) scores above average in basics. Major food (MDLZ), processed & packaged goods (SJM, K, PEP, MJN), and beverages (TAP, STZ, MNST, DPS) offer upside in consumer. Insurance brokers, REITs (HCN, HCP, KIM, FRT, BXP), and money center banks (RY, BNS, STI, JPM) are strong in financials. Medical instruments (BCR, SYK, COO, BSX, BDX, BAX), drugmakers (ABT, ABBV, PFE, JNJ, RDY, MRK, LLY, BMY), and healthcare plans (AET, CI, UNH) can be bought in healthcare. Aerospace/defense (RTN, NOC, TDG, LMT) is best in industrial goods. The top services baskets include discount stores (DLTR, WMT, COST), business services (CTAS, IRM, CSGP), and lodging (MAR, WYN). Domestic telecom, diversified computer, and diversified communication are strongest in technology. Diversified utilities (SCG, ED, NI) and electric utilities (SO, XEL, DUK, AEP) also offer upside. 

Disclosure: None.

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