- The best large cap sectors are utilities and industrial goods.
- The highest scoring large cap industry is scientific & technical instruments.
The average large cap score is 62.86 and over the past four weeks, the score score is 62.29. Large cap stocks in our universe are trading an average -16.17% below their 52 week high, 5.21% above their 200 dma, have 4.69 days to cover short, and are expected to see their EPS increase by 13.75% next year.
The best sectors to own in large cap are utilities, industrial goods, basic materials, technology, healthcare, and consumer goods. Services and financials score below average. Stay industry and stock specific in those two groups.
The following are the best and worst scoring stocks in large cap.
The next chart shows historical large cap scores by sector over time.
The strongest large cap industry is scientific & technical instruments (WAT, MTD, A). Insurance brokers (MMC, AJG, AON), major chemicals (APD, SHW, FMC, ASH), domestic telecom (T, VZ), and processed & packaged goods (CPB, SJM, MJN, MKC) are also high scoring.
In basic materials, focus your attention on major chemicals, independent oil & gas (PXD, OXY, COG, NBL, EOG), and steel & iron (SID, TX, TS, NUE). The best consumer goods groups are processed & packaged goods, cigarettes (PM, MO), and major food (MDLZ). In financials, buy insurance brokers, REITs (DLR, VTR, HCN, SPG), and credit services (SLM, MCO, EFX). The highest scoring healthcare industries are medical instruments (BCR, XRAY, SYK) and healthcare plans (AET, HUM). Diversified machinery (DOV, ITW, IR), industrial equipment (PNR, PH), and aerospace/defense (TDG, BA, HON, BEAV) are strong scoring in industrials. Remember, aerospace is typically an outperforming basket through the summer air show order season. Air delivery/freight (UPS, FDX), railroads (CSX, KSU), and restaurants (YUM) are top scoring in services. Scientific & technical instruments, domestic telecom, and diversified communication systems (AMT, CCI) are most attractive in technology. Electric utilities (NEE, DTE, ETR, EIX) and diversified utilities (NI, SCG, EXC) can also be bought.
