Mid Cap Best And 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 86%, IRF up 64%, and TRN up 58%.

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

The average mid cap score is 52.91, below the four week moving average score of 55.99. The average mid cap stock is trading -21.73% below its 52 week high, -7.24% below its 200 dma, has 7.95 days to cover held short, and is expected to post EPS growth of 18.6% next year.

Utilities, financials, healthcare, and industrial goods score above average. Services score in line. Consumer goods, technology, and basic materials score below average.

The average mid cap score is approaching levels historically coincident (post-recession) with actionable buy opportunities.

The average all-cap universe score is similarly getting to actionable levels.

Truckers (KNX, ODFL, HTLD) score best across mid cap. Intermodal volumes support logistics plays. NAFTA volume continues to provide tailwinds to pricing.  FTR reports September marked the 20th consecutive month of year-over-year growth in Class 8 truck orders. September orders were 27% higher than a year ago. Investment brokers (MKTX, GBL, GHL) benefit from turnover tied to rising volatility and asset allocation rebalancing.

Software (CDNS, TYL) stocks are strong into the new federal spending budget season and ahead of 2014 IT roll-outs. Business analytics remain particularly strong. Business services (VPRT, HPY, RBA, MMS) and semi ICs (IRF) round out the best scoring industry list this week.

No mid cap basics groups score above average this week. Processed & packaged goods (HAIN, FLO) and textiles (CRI, DECK, WWW) score best in mid cap consumer. Investment brokers, regional banks (ASBC, OZRK, FFIN, HBHC), and accident & health insurers (CNO, AFL) are attractive in financials. In healthcare, focus on hospitals (THC, CYH) and medical instruments (DXCM, HRC, PKI). Residential construction (NVR, RYL) and aerospace/defense (TDY, CW, ESL) score best in industrial goods. The top services groups are trucking, business services, and restaurants (CAKE, WEN, CBRL).  In technology, concentrate on technical & system software and semi ICs.

Disclosure: None.

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