• The best large cap sectors are utilities and industrials.
  • The highest scoring large cap industry is semi equipment & materials.
  • The average large cap score is 62.21 and that’s above the four week moving average score of 60.23. The average large cap stock in our coverage is trading -20.9% below its 52 week high, 0.42% above its 200 dma, has 3.8 days to cover held short, and is expected to grow its EPS by 13.8% in the coming year.

    Utilities, industrial goods, technology, and consumer goods score best. Services and healthcare score in line. Basics and financials score below average.

    After climbing each week since Feb 11, the average large cap score dipped slightly this week as managers got increasingly selective. A bit of back-and-fill in our scores isn’t uncommon when moving off actionable lows. Nonetheless, stay focused on top scoring stocks.

    The top scoring large cap industry is semi equipment & materials (CREE, LRCX, ASX, KLAC). Cigarettes (PM, RAI, MO), domestic telecom (T, CTL, VZ), discount stores (TGT, DG, DLTR), and insurance brokers (AON, MMC, AJG) also score high.

    In large cap basic materials, concentrate attention on major chemicals (SHW, APD, DOW) and ag chemicals (DD, AGU). The top consumer goods industries are cigarettes, processed & packaged goods (MKC, K, CPB, CAG), and personal products (ELM, KMB). Insurance brokers and REITS (PSA, O, DLR, VTR, KIM, FRT, CPT) are strongest in financials. Healthcare plans (CI, UNH, AET), medical appliances (ZBH, ISRG, EW, VAR, RMD), and medical instruments (SYK, XRAY, BDX, BCR) can be bought in healthcare. Industrial equipment (PH, EMR), aerospace/defense (HON, NOC, LMT), and diversified machinery (ITW, XYL) score best in industrial goods. The highest scoring services baskets are discount stores, restaurants (DRI, MCD), and resorts/casinos (WYNN). Semi equipment  & materials, domestic telecom, and communication equipment (GLW, QCOM) are top scoring in technology. Diversified (SCG, NI) and electric utilities (XEL, SO, NEE) can also be bought.

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