Large Cap Best And Worst Report
The highest scoring names in large cap from 1 year ago (4/2/2014) returned an average 21.35% in the past year with 94% of those scoring above 90 posting gains. Performance has been led by CMG up 75%, BSX up 67%, and MGA up 67%.
- The best large cap sector is utilities
- The top large cap industry is industrial metals
Scores have rolled to reflect second quarter seasonality. That shift has provided new support to healthcare. Broadly, second quarter seasonality rewards defensive baskets ahead of typical pre-summer portfolio de-risking. The top large cap sectors are utilities, healthcare, and industrial goods.
The average large cap score is 61.28, below the four week moving average of 64.18. The average large cap is trading -9.6% below its 52 week high, 4.52% above its 200 dma, has 3.94 days to cover held short, and is expected to generate EPS growth of 14% next year.
Consumer goods and technology score in line. Financials, basics, and services score below average. In financials, March and April are historically peak performing months for banking and capital markets, while May and June are weak returning months relative to the market.
LG CAP | 4/3/2014 | 4 Week MA | |||
Company Name | Symbol | Sector | INDUSTRY | SCORE | SCORE |
BEST | |||||
CSX Corp | CSX | SERVICES | RAILROADS | 105 | 98.75 |
Johnson & Johnson | JNJ | HEALTHCARE | DRUG MANUFACTURERS | 105 | 67.5 |
Burger King | BKW | SERVICES | RESTAURANTS | 105 | 97.5 |
Amphenol Corp | APH | TECHNOLOGY | DIVERSIFIED ELECTRONICS | 100 | 98.75 |
Core Lab | CLB | BASIC MATERIALS | OIL & GAS EQUIPMENT & SERVICES | 100 | 91.25 |
Covance Inc. | CVD | HEALTHCARE | RESEARCH SERVICES | 100 | 88.75 |
EnCana Corp | ECA | BASIC MATERIALS | INDEPENDENT OIL & GAS | 100 | 95 |
Edison Intl | EIX | UTILITIES | ELECTRIC UTILITIES | 100 | 78.75 |
Eqt Corp | EQT | UTILITIES | GAS UTILITIES | 100 | 87.5 |
Essex Ppty Trust | ESS | FINANCIALS | REITS | 100 | 92.5 |
Edwards Lifesciences | EW | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 100 | 91.25 |
General Dynamics | GD | INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 100 | 91.25 |
Idexx Lab | IDXX | HEALTHCARE | DIAGNOSTIC SUBSTANCES | 100 | 81.25 |
Intuitive Surgical | ISRG | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 100 | 90 |
Microchip Tech | MCHP | TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 100 | 106.25 |
Merck | MRK | HEALTHCARE | DRUG MANUFACTURERS | 100 | 81.25 |
Nextera Energy | NEE | UTILITIES | ELECTRIC UTILITIES | 100 | 93.75 |
O'Reilly Auto | ORLY | SERVICES | AUTO PARTS STORES | 100 | 87.5 |
Pentair | PNR | INDUSTRIAL GOODS | INDUSTRIAL EQUIPMENT & COMPONENTS | 100 | 81.25 |
Transdigm Group Inc. | TDG | INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 100 | 91.25 |
Wisconsin Energy | WEC | UTILITIES | DIVERSIFIED UTILITIES | 100 | 76.25 |
Endo Health Solutions | ENDP | HEALTHCARE | DRUG MANUFACTURERS | 100 | 80 |
Tyson Foods | TSN | CONSUMER GOODS | MEAT PRODUCTS | 100 | 95 |
Alexion Pharma | ALXN | HEALTHCARE | DRUG MANUFACTURERS | 95 | 88.75 |
American Express Co | AXP | FINANCIALS | CREDIT SERVICES | 95 | 76.25 |
Brown Forman Corp | BF.B | CONSUMER GOODS | BEVERAGES | 95 | 76.25 |
Cummins Inc | CMI | INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 95 | 76.25 |
Camden Ppty | CPT | FINANCIALS | REITS | 95 | 76.25 |
C V S Corp | CVS | SERVICES | DRUG STORES | 95 | 90 |
Walt Disney Company | DIS | SERVICES | ENTERTAINMENT- DIVERSIFIED | 95 | 95 |
Dover Corp | DOV | INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 95 | 62.5 |
The Directv Group Inc | DTV | TECHNOLOGY | COMMUNICATION EQUIPMENT | 95 | 77.5 |
DaVita Inc | DVA | HEALTHCARE | SPECIALIZED HEALTH SERVICES | 95 | 87.5 |
Eastman Chemical Co | EMN | BASIC MATERIALS | CHEMICALS- MAJOR DIVERSIFIED | 95 | 87.5 |
E O G Resources | EOG | BASIC MATERIALS | INDEPENDENT OIL & GAS | 95 | 76.25 |
Fidelity Nat'l Info Svcs | FIS | SERVICES | BUSINESS SERVICES | 95 | 86.25 |
Green Mtn. Coffee Roasters | GMCR | CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 95 | 76.25 |
Halliburton | HAL | BASIC MATERIALS | OIL & GAS EQUIPMENT & SERVICES | 95 | 88.75 |
Hershey Foods | HSY | CONSUMER GOODS | CONFECTIONERS | 95 | 87.5 |
Illumina | ILMN | HEALTHCARE | BIOTECHNOLOGY | 95 | 90 |
L3 Communications | LLL | SERVICES | SECURITY & PROTECTION SERVICES | 95 | 88.75 |
Eli Lilly | LLY | HEALTHCARE | DRUG MANUFACTURERS | 95 | 65 |
Lorillard Inc | LO | CONSUMER GOODS | CIGARETTES | 95 | 92.5 |
Mdu Res Group Inc | MDU | INDUSTRIAL GOODS | GENERAL BUILDING MATERIALS | 95 | 87.5 |
M & T Bank | MTB | FINANCIALS | REGIONAL BANKS | 95 | 78.75 |
Northrup Grumman | NOC | INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 95 | 87.5 |
P P L Corp | PPL | UTILITIES | ELECTRIC UTILITIES | 95 | 66.25 |
Quanta Svcs Inc | PWR | INDUSTRIAL GOODS | GENERAL CONTRACTORS | 95 | 73.75 |
S L Green | SLG | FINANCIALS | REITS | 95 | 87.5 |
Snap On Inc | SNA | INDUSTRIAL GOODS | SMALL TOOLS & ACCESSORIES | 95 | 87.5 |
Constellation Brands | STZ | CONSUMER GOODS | BEVERAGES | 95 | 65 |
Time Warner Cable Inc | TWC | SERVICES | CATV SYSTEMS | 95 | 72.5 |
Weatherfold International Inc | WFT | BASIC MATERIALS | OIL & GAS EQUIPMENT & SERVICES | 95 | 88.75 |
Xcel Energy Inc | XEL | UTILITIES | ELECTRIC UTILITIES | 95 | 80 |
WORST | |||||
Bed Bath & Beyond | BBBY | SERVICES | HOME FURNISHING & FIXTURES | 20 | 31.25 |
Gerdau SA | GGB | BASIC MATERIALS | STEEL & IRON | 20 | 31.25 |
Mattel Inc | MAT | CONSUMER GOODS | TOYS & GAMES | 20 | 43.75 |
Nomura Holdings | NMR | FINANCIALS | INVESTMENT BROKERAGE | 20 | 27.5 |
Rackspace Hosting Inc. | RAX | TECHNOLOGY | INFORMATION TECHNOLOGY SERVICES | 20 | 31.25 |
Rackspace Hosting Inc. | RAX | TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 20 | 31.25 |
Zoetis | ZTS | HEALTHCARE | DRUGS-GENERIC | 20 | 36.25 |
American Movil | AMX | TECHNOLOGY | WIRELESS COMMUNICATIONS | 25 | 50 |
Citigroup | C | FINANCIALS | REGIONAL BANKS | 25 | 25 |
Kinross Gold | KGC | BASIC MATERIALS | GOLD | 25 | 33.75 |
Lowes Corp | LOW | SERVICES | HOME IMPROVEMENT STORES | 25 | 47.5 |
Mobile Telesystems OJSC | MBT | TECHNOLOGY | WIRELESS COMMUNICATIONS | 25 | 46.25 |
Regeneron Pharma | REGN | HEALTHCARE | BIOTECHNOLOGY | 25 | 50 |
Red Hat Inc | RHT | TECHNOLOGY | APPLICATION SOFTWARE | 25 | 40 |
Reliance Steel & Alum. | RS | INDUSTRIAL GOODS | METAL FABRICATION | 25 | 50 |
Companhia Sid | SID | BASIC MATERIALS | STEEL & IRON | 25 | 41.25 |
Sirius Satellite | SIRI | SERVICES | BROADCASTING | 25 | 31.25 |
Silver Wheaton | SLW | BASIC MATERIALS | SILVER | 25 | 47.5 |
Incyte Corp | INCY | HEALTHCARE | BIOTECHNOLOGY | 25 | 46.25 |
Qiagen NV | QGEN | SERVICES | RESEARCH SERVICES | 25 |
50 |
The following table provides insight into market second quarter seasonality. Generally, markets downshift to neutral in the second quarter, with the SPY gaining in 6 of the past 10 years, returning a median 0.73% in the quarter.
The following chart visualizes our models' historical scores for our large cap universe.
The best large cap industry is industrial metals & minerals. Aerospace/defense stocks score highly ahead of summer air show order season. Electric utilities historically benefit ahead of summer peak demand season. Auto parts demand continues to be supported by domestic production/demand. Recovering demand in Europe provides upside and remains under-modeled. Specialized semi rounds out the best scoring list this week. Semiconductor seasonality is solid into peak SEMI book-to-bill in Q2.
In big cap basics, buy industrial metals & minerals, major chemicals, and ag chemicals.
In consumer, focus on auto parts, beverages, and processed & packaged goods. Beverages are typically strong performers ahead of hot weather demand. In financials, concentrate on credit services, REITs and money centers. April marks the peak seasonal performance for banks and capital markets.
Every healthcare group scores above average, led by drug makers, medical appliances, and health care plans. The best industrial goods groups are aerospace/defense, diversified machinery, and industrial equipment. In services, managers should be overweight drug stores, rails, and lodging. The top tech groups are semi specialized, semi equipment, communication equipment, and diversified computers. Utilities offer robust seasonality into summer.
LG CAP INDUSTRY SCORE BY SECTOR | 4/3/2014 | |
Sector | Industry | SCORE |
BASIC MATERIALS | INDUSTRIAL METALS & MINERALS | 80.00 |
BASIC MATERIALS | CHEMICALS- MAJOR DIVERSIFIED | 73.33 |
BASIC MATERIALS | AGRICULTURAL CHEMICALS | 67.00 |
BASIC MATERIALS | INDEPENDENT OIL & GAS | 66.18 |
BASIC MATERIALS | OIL & GAS EQUIPMENT & SERVICES | 65.45 |
BASIC MATERIALS | MAJOR INTEGRATED OIL AND GAS | 62.50 |
BASIC MATERIALS | OIL & GAS PIPELINES | 62.50 |
BASIC MATERIALS | OIL & GAS DRILLING & EXPLORATION | 58.75 |
BASIC MATERIALS | OIL & GAS REFINING & MARKETING | 50.83 |
BASIC MATERIALS | GOLD | 40.00 |
BASIC MATERIALS | STEEL & IRON | 36.43 |
CONSUMER GOODS | AUTO PARTS | 75.83 |
CONSUMER GOODS | BEVERAGES | 75.00 |
CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 68.75 |
CONSUMER GOODS | CIGARETTES | 67.50 |
CONSUMER GOODS | FOOD - MAJOR DIVERSIFIED | 60.00 |
CONSUMER GOODS | TEXTILES | 57.50 |
CONSUMER GOODS | AUTO MANUFACTURERS- MAJOR | 45.83 |
CONSUMER GOODS | PERSONAL PRODUCTS | 41.00 |
FINANCIALS | CREDIT SERVICES | 73.13 |
FINANCIALS | REITS | 70.71 |
FINANCIALS | MONEY CENTER BANKS | 68.33 |
FINANCIALS | REGIONAL BANKS | 65.00 |
FINANCIALS | ASSET MANAGEMENT | 56.25 |
FINANCIALS | PROPERTY & CASUALITY INSURANCE | 54.06 |
FINANCIALS | FOREIGN MONEY CENTER BANKS | 52.00 |
FINANCIALS | LIFE INSURANCE | 50.83 |
FINANCIALS | INVESTMENT BROKERAGE | 47.50 |
FINANCIALS | INSURANCE BROKERS | 45.00 |
FINANCIALS | SAVINGS & LOANS | 40.00 |
HEALTHCARE | DRUG MANUFACTURERS | 69.57 |
HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 69.44 |
HEALTHCARE | HEALTH CARE PLANS | 68.00 |
HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 63.89 |
HEALTHCARE | BIOTECHNOLOGY | 55.42 |
INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 77.50 |
INDUSTRIAL GOODS | DIVERSIFIED MACHINERY | 72.86 |
INDUSTRIAL GOODS | INDUSTRIAL EQUIPMENT & COMPONENTS | 62.50 |
INDUSTRIAL GOODS | FARM & CONSTRUCTION MACHINERY | 49.00 |
SERVICES | DRUG STORES | 75.00 |
SERVICES | RAILROADS | 75.00 |
SERVICES | LODGING | 72.50 |
SERVICES | RESORTS AND CASINOS | 66.67 |
SERVICES | DRUGS WHOLESALE | 65.00 |
SERVICES | RESTAURANTS | 65.00 |
SERVICES | BUSINESS SERVICES | 62.00 |
SERVICES | DEPARTMENT STORES | 60.00 |
SERVICES | GROCERY STORES | 60.00 |
SERVICES | CATV SYSTEMS | 59.29 |
SERVICES | ENTERTAINMENT- DIVERSIFIED | 58.75 |
SERVICES | APPAREL STORES | 49.29 |
SERVICES | DISCOUNT, VARIETY STORES | 47.50 |
SERVICES | AIR DELIVERY & FREIGHT SERVICES | 43.75 |
TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 75.63 |
TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 73.75 |
TECHNOLOGY | COMMUNICATION EQUIPMENT | 71.67 |
TECHNOLOGY | DIVERSIFIED COMPUTER SYSTEMS | 70.00 |
TECHNOLOGY | SEMICONDUCTOR- BROAD LINE | 67.50 |
TECHNOLOGY | DATA STORAGE DEVICES | 63.75 |
TECHNOLOGY | BUSINESS SOFTWARE & SERVICES | 62.00 |
TECHNOLOGY | SEMICONDUCTOR EQUIPMENT & MATERIALS | 62.00 |
TECHNOLOGY | DIVERSIFIED COMMUNICATION SERVICES | 61.67 |
TECHNOLOGY | TELECOM SERVICES - DOMESTIC | 61.67 |
TECHNOLOGY | INTERNET INFORMATION PROVIDER | 59.29 |
TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 58.75 |
TECHNOLOGY | TECHINICAL & SYSTEM SOFTWARE | 57.50 |
TECHNOLOGY | APPLICATION SOFTWARE | 55.56 |
TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 52.00 |
TECHNOLOGY | WIRELESS COMMUNICATIONS | 45.00 |
UTILITIES | ELECTRIC UTILITIES | 77.14 |
UTILITIES | DIVERSIFIED UTILITIES | 72.50 |
UTILITIES | FOREIGN UTILITIES | 46.67 |
None.