Large Cap Best & Worst Report - June 8, 2016

  • The best large cap sectors are utilities and healthcare.
  • The highest scoring large cap industry is major chemicals.

The average large cap score is 63.17 and the four week average score is 60.72. The average large cap stock in our universe is trading -15.86% below its 52 week high, 5.94%% above its 200 dma, has 4.37 days to cover short, and is expected to grow EPS by 14.12% next year.

The strongest sector is utilities, which is common at this time of year. Healthcare, industrials, and basics also score above average. Technology scores in line. Consumer goods, services, and financials score below average.

The following are the best and worst scoring large cap stocks in our coverage.

The strongest industry in large cap is major chemicals (FMC, EMN, APD, ASH, SHW). Scientific & technical instruments (WAT, MTD, A), cigarettes (PM, RAI), insurance brokers (MMC, AJG), and air delivery & freight (CHRW, EXPD, FDX) also score strong.

In large cap basics, focus on major chemicals, independent oil & gas (PXD, OXY, COG), and steel & iron (SID, TX, TS). Cigarettes, major food (MDLZ), and processed & packaged goods (CPB, MJN, MKC) are best in consumer goods. The strongest industries in financials are insurance brokers, credit services (DFS, SLM, EFX), and money center banks (STI, BNS, BK, JPM). Healthcare plans (AET, HUM), medical instruments (BCR, SYK, BSX), and medical appliances (EW, MDT, ISRG) can be bought in healthcare. Diversified machinery (DOV, ITW, IR), industrial equipment (PNR, PH), and aerospace/defense (TDG, BA, NOC, HON, BEAV) are top scoring in industrials. The best services industries are air delivery & freight, discount/variety stores (DG, DLTR, WMT), and restaurants (YUM, DRI). Scientific & technical instruments, diversified communication systems (AMT, CCI), and Internet software (EQIX, CTXS, CRM, FFIV, AMZN, OTEX) offer upside in technology. Diversified utilities (NI, SCG) and electric utilities (NEE, DTE, CPN) can also be owned in portfolios.

 

Disclosure: None.

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