Weekly Report: Top Scoring Sectors And Stocks

By Todd Campbell
Monday, February 10, 2014 12:13 PM EDT

Methodology
Our weekly best and worst reports show you stocks with the best potential returns over the coming 6 to 12 months.  The score is calculated by fusing together the key drivers of price movement including, earnings beats, earnings growth, at-the-market insider buys, institutional activity, short ratio analysis, price to earnings analysis and calendar quarter seasonality.  Those stocks appearing in our best list should be bought while those appearing in our worst list should be sold.

Top scoring weekly returns:  Buy and Hold 1 Year


  • The best scoring sector remains industrial goods


The top scoring industry remains industrial goods.  Healthcare also scores above the universe average.
 
Technology, consumer goods, and financials score in line. In technology, stay focused on large and mid cap for now.  In consumer goods, concentrate on mid cap and in financials, buy small cap.
 
Services, utilities, and basic materials score below average.  In those baskets stay industry and stock specific.
 

 



The following chart visualizes score by sector and market cap.


The next chart shows historical four, eight, and 12 week scores as well as our universe average score in relation to the S&P 500.  A move in the four week average score back above the eight and 12 week score would add conviction that the market sell-off has run its course.
 

 



INDUSTRIAL GOODS
 

 

Industrials remain the best scoring sector across our universe. Most heavily represented are construction related companies and aerospace/defense companies.  European Q4 growth will be reported later in the week, with Reuters estimating Eurozone growth of 0.2% QoQ. U.K. industrial production grew 0.5% in Q4.  Germany's industrial production slipped from November in December, however, December's reading was 2.6% higher than last year.  France will update data on Monday.  U.S. industrial production will be updated on February 14th. U.S. production was 3.7% higher than a year ago in December.
 

 



HEALTHCARE
 

 

Maintain your overweight to healthcare. Drug makers and biotech continue to benefit from maturing specialty pipelines across oncology and autoimmune disease. Managers are becoming increasingly comfortable with post-reform potential for medical appliances and instruments -- areas which were previously shunned due to tax impacts.  IMS expects global spending growth on medicine will eclipse $1 trillion this year and climb to $1.2 trillion by 2017.  Spending on specialty medicine will climb from $171 billion in 2012 to $230-240 billion in 2017.  Faster growth will occur in emerging markets, where specialty drug spending is expected to increase 90% to $40-50 billion a year by 2017.  
 

 

 

 

 

Economic Data to Watch this Week: 

 

February 11th February 13th February 14th
Wholesale Sales
Wholesale Inventories		 Retail Sales Industrial Production
Capacity Utilization

 

Top Scoring Stocks: 
 

LG CAP   2/6/2014 4 Week MA MID CAP   2/6/2014 4 Week MA
Symbol Sector SCORE SCORE Symbol Sector SCORE SCORE
BEST       BEST      
MCHP TECHNOLOGY 110 110 TER TECHNOLOGY 105 108.75
OCR SERVICES 110 110 CNO FINANCIALS 100 103.75
AZO SERVICES 105 108.75 HTLD SERVICES 100 100
GLW TECHNOLOGY 105 105 MTW INDUSTRIAL GOODS 100 100
MYL HEALTHCARE 105 106.25 NVR INDUSTRIAL GOODS 100 98.75
OTEX TECHNOLOGY 105 101.25 TRAK TECHNOLOGY 100 98.75
RRC BASIC MATERIALS 105 95 UPL BASIC MATERIALS 100 90
SIAL HEALTHCARE 105 106.25 CHH SERVICES 95 97.5
VRSN TECHNOLOGY 105 108.75 CMC BASIC MATERIALS 95 95
AGN HEALTHCARE 100 103.75 COLM CONSUMER GOODS 95 96.25
APH TECHNOLOGY 100 103.75 DBD CONSUMER GOODS 95 98.75
HBI CONSUMER GOODS 100 90 HUBG SERVICES 95 96.25
HP BASIC MATERIALS 100 100 LFUS INDUSTRIAL GOODS 95 97.5
ILMN HEALTHCARE 100 100 MDSO TECHNOLOGY 95 97.5
LLL SERVICES 100 96.25 MIDD INDUSTRIAL GOODS 95 97.5
LSI TECHNOLOGY 100 95 PMT FINANCIALS 95 75
NEE UTILITIES 100 81.25 TEX INDUSTRIAL GOODS 95 98.75
SWN BASIC MATERIALS 100 82.5 TPX CONSUMER GOODS 95 95
 ACT HEALTHCARE 95 95 TTWO TECHNOLOGY 95 78.75
ADBE TECHNOLOGY 95 95 ACXM TECHNOLOGY 90 86.25
ALXN HEALTHCARE 95 98.75 ALGN HEALTHCARE 90 92.5
BIIB HEALTHCARE 95 95 ALR HEALTHCARE 90 91.25
CAH SERVICES 95 92.5 ARE FINANCIALS 90 67.5
CF BASIC MATERIALS 95 96.25 ARRS TECHNOLOGY 90 93.75
CMCSA SERVICES 95 95 BRCD TECHNOLOGY 90 93.75
COG BASIC MATERIALS 95 81.25 CTSH TECHNOLOGY 90 91.25
CVD HEALTHCARE 95 98.75 CW INDUSTRIAL GOODS 90 93.75
DISH CONSUMER GOODS 95 91.25 DFT FINANCIALS 90 76.25
DOX TECHNOLOGY 95 95 DV SERVICES 90 90
ESRX SERVICES 95 98.75 ESL INDUSTRIAL GOODS 90 93.75
GD INDUSTRIAL GOODS 95 92.5 KBH INDUSTRIAL GOODS 90 65
LEN INDUSTRIAL GOODS 95 96.25 LII CONSUMER GOODS 90 93.75
MDU INDUSTRIAL GOODS 95 91.25 OSK CONSUMER GOODS 90 93.75
NFLX SERVICES 95 91.25 OZRK FINANCIALS 90 88.75
NSC SERVICES 95 92.5 PKI HEALTHCARE 90 86.25
NWL CONSUMER GOODS 95 95 RGR CONSUMER GOODS 90 91.25
RTN INDUSTRIAL GOODS 95 92.5 SIVB FINANCIALS 90 86.25
STJ HEALTHCARE 95 93.75 SPW INDUSTRIAL GOODS 90 93.75
TDG INDUSTRIAL GOODS 95 95 TEN CONSUMER GOODS 90 87.5
UNP SERVICES 95 92.5 TRN SERVICES 90 93.75
VFC CONSUMER GOODS 95 91.25 TTC INDUSTRIAL GOODS 90 92.5
        UHAL SERVICES 90 96.25
        WEN SERVICES 90 93.75
        X INDUSTRIAL GOODS 90 90
SMALL CAP   2/6/2014 4 Week MA ADRS   2/3/2014 4 Week MA
Symbol Sector SCORE SCORE Symbol COUNTRY SCORE SCORE
BEST       BEST      
BLDR SERVICES 100 100 INFY India 100 101.25
CWT UTILITIES 100 92.5 GA China 95 92.5
AFFX TECHNOLOGY 95 96.25 GENT Italy 95 92.5
CENX BASIC MATERIALS 95 96.25 MPEL Hong Kong 95 93.75
GBX SERVICES 95 98.75 PSDV United States 90 92.5
HZO SERVICES 95 97.5 EDAP France 85 78.75
SABA TECHNOLOGY 95 98.75 GMK México 85 82.5
SILC TECHNOLOGY 95 95 HIMX Taiwan 85 82.5
WIRE BASIC MATERIALS 95 97.5 JST China 85 76.25
ANAC HEALTHCARE 90 97.5 NJ Japan 85 88.75
CCC INDUSTRIAL GOODS 90 86.25 NVO Denmark 85 81.25
CDI SERVICES 90 91.25 SMI Hong Kong 85 88.75
CMO FINANCIALS 90 67.5 SPRD China 85 85
DXYN CONSUMER GOODS 90 93.75 TEVA Israel 85 83.75
HW INDUSTRIAL GOODS 90 90 TRIB Ireland 85 83.75
IVAC TECHNOLOGY 90 92.5 HKTV Hong Kong 80 76.25
LCAV HEALTHCARE 90 92.5 ICLR Ireland 80 66.25
PRCP TECHNOLOGY 90 93.75 JRJC China 80 77.5
PVA BASIC MATERIALS 90 88.75 NTZ Italy 80 77.5
WRES BASIC MATERIALS 90 70 RDY India 80 77.5
CGX SERVICES 85 88.75 WIT India 80 82.5
DXPE SERVICES 85 87.5 ELN Ireland 75 78.75
ECOL INDUSTRIAL GOODS 85 87.5 FMS Germany 75 78.75
KERX HEALTHCARE 85 92.5 NTES China 75 85
MEI TECHNOLOGY 85 87.5 OIIM Hong Kong 75 73.75
MPWR TECHNOLOGY 85 83.75 RY Canada 75 72.5
NTCT TECHNOLOGY 85 83.75 SNN United Kingdom 75 78.75
TBBK FINANCIALS 85 72.5 WCRX Ireland 75 75
CECO SERVICES 80 91.25        
CSGS TECHNOLOGY 80 83.75        
DMND CONSUMER GOODS 80 76.25        
DYAX HEALTHCARE 80 83.75        
FBC FINANCIALS 80 72.5        
GLRE FINANCIALS 80 77.5        
INSY HEALTHCARE 80 80        
MBWM FINANCIALS 80 81.25        
MTRX INDUSTRIAL GOODS 80 83.75        
NEWP TECHNOLOGY 80 86.25        
PDLI HEALTHCARE 80 83.75        
PRFT TECHNOLOGY 80 82.5        
SWHC CONSUMER GOODS 80 85        
WMAR SERVICES 80 82.5        

 

 

 

None.

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