Large Cap Best & Worst Report

Since 2010, our top scoring weekly has outpaced the SPX by a median 376 bps in the following year. The best performers from our list one year ago are MU up 69%, RCL up 62%, FB up 61%, AAPL up 56%, HPQ up 51%, and THI up 45%.

  • Healthcare is the best large cap sector.
  • The top industry is healthcare plans

The average large cap score is 71.44, above the four week moving average of 69.58. The average large cap stock is trading -9.23% below its 52 week high, 4.20% above its 200 dma, has 3.57 days to cover held short, and is expected to post EPS growth of 10.73% next year.

The best large cap sector is healthcare. Consumer goods, services, industrial goods, and financials score above average. Technology is in line. Utilities and basic materials are below average.

The top large cap industry is healthcare plans (WLP, UNH, HUM, AET, CI). Railroad (CSX, UNP, NSC, KSU, CP) carload volume continues to support railcar rates. Rising consumption of high bandwidth content supports diversified communications services (LVLT, CCI, AMT) as fixed infrastructure is leveraged for capacity growth. Wholesale drug (MCK, ABC, CAH) demand benefits from rising exchange and Medicaid enrollment growth. Major food (MDLZ, ADM) offers upside on multi-channel expansion and overseas growth in developing markets.

In large cap basics, buy ag chemicals (DD, CF, AGU) and major chemicals (APD, SHW, ASH). In consumer goods, concentrate on major food, textiles (NKE, RL, MHK, LULU, VFC), and processed & packaged goods (MJN, GMCR, CAG, PEP, CPB). The top financials industries are asset managers (AMP, PFG, IVZ, BLK), P&C insurers (CINF, CB, XL, WRB, ACE, HIG, TRV), and REITs (HCN, PSA, AVB, VTR, SPG). In healthcare, buy healthcare plans, medical instruments (XRAY, BDX, COV, SYK, CFN, BCR), and biotech (ILMN, GILD, INCY, CELG, REGN, MDVN, BMRN). Aerospace/defense (BA, TDG, RTN, GD, NOC, COL), diversified machinery (IR, PLL, ITW), and industrial equipment (PH, ROP) are best in industrial goods. Railroads, wholesale drugs, and discount stores (FDO, DG, COST, WMT, TGT) should be your focus in services. The top technology baskets are diversified communication services, data storage devices (WDC, NTAP, STX), and technical & system software (INFY, ANSS, ADSK, SNPS).


Disclosure: None.

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