Mid Cap Best & Worst Report - December 24, 2014

The best scoring names in our weekly mid cap report one year ago outpaced the S&P 400 by an average 195 bps in the past year. The best performers from our list from 1 year ago are TQNT up 226%, SWKS up 161%, ILMN up 76%, SKX up 69%, and HBI up 63%.

  • The top scoring mid cap sector is utilities.
  • The best scoring mid cap industry is trucking.

The average mid cap score is 67.80, which is above the four week moving average score of 65.15. The average mid cap stock is trading -14.45% below its 52 week high, 2.65% above its 200 dma, has 7.47 days to cover held short, and is expected to post EPS growth of 16.07% next year.

The best sectors across our mid cap stock universe are utilities, consumer goods, healthcare, services, and technology. Financials score in line. Industrial goods and basic materials score below average.

Trucking (KNX, ODFL, HTLD) is the top mid cap industry. Volume growth offers spot rate tailwinds heading into 2015. Technical and system software (CDNS, TYL, ACIW) demand benefits from year-over-year expected IT budget growth. Companies continue to embrace business intelligence solutions and practice and process software. Semi IC (IRF, MSCC, FCS) demand growth stems from the internet of things, including the electrification of industrial goods. Auto sales (PAG, GPI, CPRT) volume is tracking higher, led by high margin light trucks. Market tailwinds support investment broker (SF, MKTX) revenue and profit growth.

In mid cap basics, buy synthetics (MTX, POL, CMP). Across consumer goods, the top scoring baskets are business equipment (HNI, PAY), processed & packaged goods (HAIN, FLO), and textiles (WWW, COLM, CRI). Investment brokers, regional banks (OZRK, FHN, NPBC, FFIN, ASBC), and asset managers (EV, JNS) score highest in financials. In healthcare, only medical instruments (HAE, HRC, PODD, TFX, NUVA) score above the universe average score. Industrial electrical equipment (BDC, AOS) and residential construction (NVR) score best in industrials.  Trucking, auto dealers, and specialty retail (OUTR, BID, SBH) are top scoring in services. The best technology groups are technical & system software, semi ICs, and broad line semiconductor (ONNN, CAVM, IDTI).

 

Disclosure: None.

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