Mid Cap Best & Worst Report

Since 2010, the best scoring names in our weekly mid cap reports have outpaced the S&P 400 by a median 4.07% in the following year. The best performers from our list from 1 year ago are ILMN up 78%, IRF up 71%, JNS up 60%, TRN up 57%, and LVLT up 55%.

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

The average mid cap score is 58.92 this week, above the four week moving average score of 56.99. The average mid cap stock is trading -19.49% below its 52 week high, -4.30% below its 200 dma, has 7.97 days to cover held short, and is expected to grow its EPS by 18.4% next year.

Utilities, services, and industrial goods score highest this week. Financials, healthcare, and consumer goods score in line. Technology and basic materials score below average.

The top mid cap industry is trucking (ODFL, KNX, HTLD). Volume continues to support spot rates. Software (TYL, MCRS, CDNS) spending into federal budget year lent support to related companies. Analytics remains a major focus of corporate IT spending plans for 2015. Foot traffic growth is driving same store sales up at restaurants (CBRL, WEN, EAT, CAKE). The Nat'l Restaurant Association's performance index remains positive (see below). Brokerage (MKTX) offers opportunity on volume inspired rotation and year-over-year AUM growth. Emerging market expansion and rising sku's in the convenience store channel are boosting processed & packaged goods (HAIN).

Steel & iron (STLD, CMC) and synthetics (MTX) score best in mid cap basic materials. In consumer, buy processed & packaged goods, business equipment (HNI), and textiles (WWW, DECK). Investment brokers, accident & health insurers (CNO), and regional banks (OZRK, ASBC, HBHC) offer upside in financials. No mid cap healthcare groups score above average; trade up in market cap instead (see yesterday's report for ideas). Residential construction (NVR, RYL) and aerospace/defense (ESL, CW, TDY) are the highest scoring across industrial goods. Trucking, restaurants, and business services (VPRT, RBA) offer the highest scores in services. In technology, overweight technical & system software, semi ICs (IRF, MSCC), and information and delivery services (DNB).

 

Disclosure: None.

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