Since 2010, the best scoring names in our weekly mid cap report have outpaced the S&P 400 by a median 362 bps in the following year. The best performers from our list one year ago include SWKS up 166%, SKX up 70%, and ILMN up 61%.
The average mid cap score is 62.13, which is below the four week moving average score of 64.97. The average mid cap stock is trading -15.92% below its 52 week high, 1.04% above its 200 dma, has 7.48 days to cover held short, and is expected to post EPS growth of 15.9% next year.
The best mid cap sector is utilities. Healthcare, consumer goods, financials, services, and technology score above average. Industrial goods and basic materials score below average.
According to the Seasonal Investor database, the SP400 midcap index ETF has climbed in 7 of the past 10 Q1s, returning a median 6.9% in the period.
Source: Seasonal Investor
Trucking (KNX, ODFL, HTLD) is the top scoring mid cap industry. Cross-border volume and strong port volume continue to support spot market rates. The ATA's truck tonnage index hit an all-time high in November. Shipping volume strength and falling diesel prices provide margin opportunity. According to the ATA, every penny decline in diesel amounts to industry wide savings of $350 million to $375 million per year. Foot traffic and same store sales growth at restaurants (WEN, CBRL, CAKE, PZZA, BWLD, EAT) supports results through the Q4 EPS reporting season. According to the Nat'l Restaurant Association's Restaurant Performance Index, the majority of restaurant operators reported increases in both sales and traffic in the most recently reported month of November. The Index's future expectations reading is similarly bullish. Specialty retail (OUTR, AAN, BID) and textiles (WWW, COLM, SKX) remain high scoring. REITs (CBL, REG, ARE, RWT) benefit from capacity additions, which have (yet) to result in weakness to effective rents.
