- The best large cap sector is consumer goods.
- The top large cap industry is REITs.
After adjusting scores to reflect first quarter seasonality, the average score across large cap fell to 52.70. The average large cap in our universe is trading -22.71% below its 52 week high, -6.26% below its 200 dma, has 4.41 days to cover held short, and is expected to post EPS growth of 10.21% in the coming year.
The best large cap sector is consumer goods. Technology, healthcare, and industrial goods also score high. Services score in line. Financials, basics, and utilities score below average.
Over the past decade, the NASDAQ 100 has posted the best Q1 seasonality of the major market ETFs; finishing higher 9 times, according to the seasonal investor database. Mid cap stocks, however, have delivered the best median return for the period.
The top scoring large cap industry is REITs (DLR, UDR, ESS, PSA, O, HCN, EQR). Aerospace/defense (RTN, NOC, BA, COL), grocers (KR), wholesale drugs (ABC, MCK), and specialized semi (NVDA, MCHP) also offer upside.
The roll in scores to reflect seasonality provides some support to basics, but scores for most energy industries remain below average. Refiners (VLO, TSO), ag. chemicals (DD, AGU), major chemicals (APD, ASH), and pipelines (SE) are best. In consumer goods, focus on processed & packaged goods (SJM, MKC, CPB), beverages (TAP, DPS, STZ), and cigarettes (RAI, PM). The top financials industries are REITs and insurance brokers (WSH). Medical appliances (ISRG, VAR, ZBH, EW) and healthcare plans (CI, AET, HUM). The top industrial baskets are aerospace/defense and industrial equipment (ROP). Grocers, wholesale drugs, discounters (COST, DLTR), and business services (CTAS, ATHN, V) can be bought in services.Specialized semi, scientific & technical instruments (MTD, WAT, A), and semi equipment & materials (KLAC, AMAT) are strong in technology.
The following large cap stocks have gained ground in 10 of the past 10 Q1s:
