Since 2010, the top scoring stocks in our weekly large cap report have returned an average 344 bps of excess to the SPX in the following year. The best performers from our list one year ago are RCL up 77%, CLR up 67%, FTR up 63%, AMP up 49%, and ITT up 48%.

•       Healthcare is the top scoring large cap sector.
•       Biotechnology is the top scoring industry.

The average large cap score is 67.11 this week, above the four week moving average score of 62.49. The average large cap stock is trading -8.53% below its 52 week high, 4.12% above its 200 dma, has 4.49 days to cover held short, and is expected to grow its EPS by 13.3% next year.

Healthcare is the top scoring large cap sector. Financials also score above average. Utilities score in line. Consumer goods, technology, basics, industrial goods, and services score below average. Stay stock and industry specific in below average scoring sectors.

The best scoring large cap industry is biotechnology (GILD, CELG, ILMN, AMGN, REGN, JAZZ). Lodging (H, MAR, WYN) benefits from improving RevPar. Occupancy and room rates remain solid. According to STR, RevPAR improved 8.8% year-over-year in July. Assets under management at asset managers (PFG, IVZ, BLK, AMP, TROW) are boosting sales and profit for the group. The second open enrollment period for the healthcare exchanges offers additional opportunity for healthcare plans (HUM, CI, UNH) given rising premiums. Medicaid expansion continues to provide tailwinds in states adopting it. Rail volume growth supports operators (CP, CSX, NSC) with year-to-date total carloads (including intermodal) climbing 4.7%.

In large cap basics, concentrate portfolios around oil & gas equipment & services (WFT, SLB, NOV, CAM, HAL, FTI), pipelines (WMB), and major chemicals (APD, SHW, DOW). The top consumer goods groups are textiles (NKE, UA, RL, HBI), major food (MDLZ), and processed & packaged goods (PEP, GMCR, MJN). In financials, buy asset managers, money center banks (RY, BNS, BK, WFC, STI), and insurance brokers (MMC, AON). In healthcare, focus attention on biotechnology, healthcare plans, and medical instruments (COO, COV, CFN, XRAY). Aerospace/defense is the only above average scoring group in industrial goods (GD, TDG, NOC). Lodging, rails, and department stores (KSS) score highest across services. In technology, the best industries are domestic telecom (CTL, VZ, T), Internet software (OTEX, SYMC, VRSN, FFIV, CTXS, CRM), and data storage (EMC, WDC, NTAP).