E Weekly Report – The Stocks To Watch

Methodology

Our weekly best and worst reports show you stocks with the best potential returns over the coming 6 to 12 months.  The score is calculated by fusing together the key drivers of price movement including, earnings beats, earnings growth, at-the-market insider buys, institutional activity, short ratio analysis, price to earnings analysis and calendar quarter seasonality.  Those stocks appearing in our best list should be bought while those appearing in our worst list should be sold.

 

Top scoring weekly returns:  Buy and Hold 1 Year


 


  • The best scoring sector remains industrial goods

The best scoring sector across our 1,600 company universe remains industrial goods. Healthcare also scores above average.
 
Financials score in line, led by mid and small cap.  Large cap financials scores are lagging.
 
Services, technology, consumer goods, basics, and utilities score below average.  Mid cap consumer scores above average.
 


 

 

 

 

The following chart visualizes score by market cap and sector.


 

This next chart shows rolling moving average scores. Historically, a move in the four week score above the eight and 12 week score is bullish.
 

 

 

 

Industrial Goods:
 

Dovish comments from the BOE provide tailwinds to U.K. growth, while improving outlooks across Europe finally provide demand. Watch for overseas sales surprises across industrials as returning demand is leveraged across easy comparisons (similar to the U.S. in 2010).  Aerospace/defense remains heavily represented in our ranking. Boeing has finished April higher than it begins February in 9 of the past 10 years as investors digest production and backlogs ahead of summer air shows. Suppliers benefit from OEM production growth. Deliveries at Boeing, for example, totaled 648 in 2013, up 8%, and are expected to be between 715 and 725 in 2014. Airbus delivered a record 626 aircraft last year, up from 588 in 2012. European passenger car registrations rose 5.5% YoY in January — a 5th consecutive month of YoY improvement

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