Small Cap Top Stocks - June 2, 2016

·       The strongest small cap sectors are utilities and consumer goods.

·       The best small cap industry is auto parts.

The average small cap score is 52.22 and the four week moving average score is 49.24. The average small cap stock in our universe is trading -31.6% below its 52 week high, 2.11% above its 200 dma, and has 8.65 days to cover short.

Utilities and consumer goods score best across small cap. Industrial goods, financials, and basics can also be bought. Technology scores in line. Healthcare and services score below average.

The following chart shows historical small cap scores.

The best small cap industry is auto parts (SRI, MTOR). Processed & packaged goods (MGPI), business software (CSGS, PRFT, MSTR, TSYS), specialized semi (MPWR, QLGC), and aerospace/defense (AVAV, TASR) are also top scoring.

In small basics, buy steel & iron (ZEUS, AKS), industrial metals (BOOM), and gold (SA). Auto parts, processed & packaged goods, and home furnishing (SCSS, ETH) are best in consumer goods. The top financials industries are regional banks (CFNL, TCBK), credit services (WRLD), and S&Ls (NWBI, FBC, OCFC). Specialized health services (BEAT, USPH, AHS), medical instruments (IART, MMSI, LMNX, VASC, ICUI, ELGX), and home healthcare (AMED, BIOS) offer upside in healthcare. Buy aerospace/defense in industrial goods. Trucking (MRTN) and business services (EXAM) are the two strongest services industries. Business software, specialized semi, and semi equipment (UTEK) are attractive in technology.

Disclosure: None.

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