E Weekly Report: Top Scoring Sectors And Stocks

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 top scoring industry remains industrial goods.  Healthcare also scores above the universe average.
 
Technology, consumer goods, and financials score in line. In technology, stay focused on large and mid cap for now.  In consumer goods, concentrate on mid cap and in financials, buy small cap.
 
Services, utilities, and basic materials score below average.  In those baskets stay industry and stock specific.
 

 

The following chart visualizes score by sector and market cap.

The next chart shows historical four, eight, and 12 week scores as well as our universe average score in relation to the S&P 500.  A move in the four week average score back above the eight and 12 week score would add conviction that the market sell-off has run its course.
 

 

INDUSTRIAL GOODS
 

 

Industrials remain the best scoring sector across our universe. Most heavily represented are construction related companies and aerospace/defense companies.  European Q4 growth will be reported later in the week, with Reuters estimating Eurozone growth of 0.2% QoQ. U.K. industrial production grew 0.5% in Q4.  Germany’s industrial production slipped from November in December, however, December’s reading was 2.6% higher than last year.  France will update data on Monday.  U.S. industrial production will be updated on February 14th. U.S. production was 3.7% higher than a year ago in December.