The best scoring small caps from one year ago have outperformed the R2K by 643 bps over the past year, with no turnover.  The top performers are RAD up 254%, PRCP up 113%, MDSO up 109%, MTRX up 87%, UEIC up 84%, and RRGB up 83%.

We're engaged in the biggest increase in coverage in years, so you'll likely notice new ideas this week!

• The top scoring small cap sector is healthcare.
• The best scoring small cap industry is railroads.

 
The average small cap score is 54.07, below the four week moving average score of 57.17.  The average small cap is trading -23% below its 52 week high, 4.14% above its 200 dma, and has 6.67 days to cover held short.
 
The top scoring small cap sector this week is healthcare.  Industrials and services also score above average.  Financials score in line.  Technology, basics, consumer goods, and utilities score below average.

 
 

Railroads are the best scoring small cap industry (GBX, ARII), operator volume and carload pricing continue to support operator profit growth.  UNP & KSU's revenue per carload grew 5% and 5.7% YoY in Q4, respectively. Business services (EXAM, CGX, ARC) also score highly.  Scientific & technical instruments (FLDM, ALOG, PRCP) benefit as global R&D spend increases.  General building materials (HW, NCS) offer growth on construction spending opportunity.

No small cap basics groups score above average.  Where possible go to large cap.  In consumer goods, only small cap textiles (DXYN) are strong scoring.  In financials, buy investment brokers (CLMS), P&C insurers (STFC), and regional banks (TBBK).  In healthcare, the top groups are medical appliances (CYBX, BABY, CYNO, CSII), medical instruments (VASC, HTWR, OSUR), and biotech (SGMO, NLNK, ANIK, CORT, KERX, ANAC). The best baskets in industrial goods are general building materials, and aerospace/defense (ORB).  In services, focus on rails, business services, and restaurants (DAVE, RRGB).  In technology, concentrate on scientific & technical instruments, semi ICs (TQNT, DIOD, PLXT), diversified electronics (IVAC, MEI), and specialized semiconductor (MPWR).