• The best large cap sectors are utilities, industrials, and consumer.
  • The highest scoring large cap industry is insurance brokers.
  • The average large cap score is 65.84 and that’s above the four week moving average score of 62.62. The average large cap stock in our 1,500 stock universe is trading -20.49% below its 52 week high, 0.78% above its 200 dma, has 4.34 days to cover held short, and is expected to grow its EPS by 14.24% in the next year.

    Utilities, industrial goods, consumer, services, and technology score above average this week. Healthcare, basics, and financials score below average. Scores will shift to reflect Q2 seasonality next week, so make sure to tune in next week for any changes.

    The following chart shows average large cap scores since the Great Recession.

    Insurance brokers (AON, AJG, MMC) score best in large cap. Major chemicals (APD, EMN, SHW), restaurants (YUM, DRI, MCD), cigarettes (PM, RAI, MO), and discount retail (TGT, DG, WMT, DLTR) also score high.

    In large cap basics, focus on major chemicals and pipelines (SE). Cigarettes, processed & packaged foods (MKC, K, CAG, CPB), and personal products (EL, CL) are best in consumer goods. Only insurance broker s and REITS (PSA, O, VTR, DLR, SPG, AVB) score high in financials. Healthcare plans (AET, UNH, ANTM), medical instruments (BCR, SYK, BDX), and medical appliances (ISRG, EW, ZBH) offer upside in healthcare. Diversified machinery (ITW, XYL, IR), industrial equipment (PH, EMR), and aerospace/defense (NOC, HON, BA) can be bought in industrial goods. The strongest services groups are restaurants, discount stores, and air delivery/freight stocks (UPS, CHRW). Domestic telecom (T, CTL), scientific & technical instruments (MTD), and communication equipment (GLW, QCOM) should be owned in technology. Diversified utilities (SCG, NI, WEC, EXC, ED) and electric utilities (XEL, SO, NEE, DTE) can also be bought.

     

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