Our top scoring large cap stocks from 1 year ago produced an average 166 bps of excess return to the S&P 500 over the past year. The best performers from a year ago (5/21/2013) are MGA up 55%, MCK up 54%, EOG up 53%, NOC up 51%, and BHI up 47%.

• The top scoring sector is utilities.
• The best scoring industry is railroads.

 The average large cap stock score is 56.57, below the four week moving average score of 57.67. The average large cap is trading -10.53% below its 52 week high, 2.23% above its 200 dma, has 3.87 days to cover held short, and is expected to grow EPS by 13.48% next year.
 
The best scoring sector across our large cap universe is utilities. Healthcare and basic materials also score above average. Consumer goods and industrial goods score in line. Technology, services, and financials score below average.

The top large cap industry is railroads (CSX, UNP, NSC, KSU). Total rail carload traffic is 3.9% higher year-to-date than 2013. A return of grain exports has boosted grain carloads by 19% so far this year. Coal inventory drawdown and higher natural gas prices have stabilized coal railcar volume, with total year-to-date coal volume up 1.4% from last year. Oil & gas pipelines (SE, WMB) score strongly thanks to shale production driven capacity expansion. Domestic telecom (T, CTL) offers opportunity as data demand supports ARPU.  REITs (AVB, SLG, PSA, ESS, CPT) offer upside thanks to rebounding activity in office and commercial, low interest rates, and improving vacancy driven effective rents. A pick up in branded drug patent expiration this year and an acceleration in expiration next year support margin at drug stores (CVS, RAD, OCR).

The best basics industries are oil & gas pipelines, independent oil & gas (ECA, CHK, EOG, SWN, RRC, PXD), major chemicals (EMN, ASH), and major oil & gas (BP, COG). 

The top consumer goods baskets include beverages (STZ, BF.B, DPS, MNST), cigarettes (LO, RAI), and processed & packaged foods (GMCR, K). In financials, buy REITs, credit services (SLM, MCO), and P&C insurers (AIG, TRV, XL). Every healthcare industry scores above average, led by drugmakers (ABBV, JNJ, MRK, ENDP, LLY, ALXN), healthcare plans (WLP, HUM), and medical appliances (EW, RMD, ZMH). In industrial goods, concentrate on aerospace/defense (TDG, GD, SPR), diversified machinery (DOV, CMI), and industrial equipment (PNR). Railroads, drug stores, and diversified entertainment (TWX, DIS) are best in services.  The top technology groups are domestic telecom, diversified communication (APH, TYC), and semi ICs (TSM, MRVL). Every utilities industry scores above average thanks to rising retail rates/sales and electricity demand (PEG, WEC, NI, PPL, EIX, ETR).