Since 2010, the average return for our weekly best scoring small caps has outpaced the R2K by a median 711 bps over the following year. The best performers from one year ago are HA up 164%, UEIC up 65%, and ODFL up 50%.
The average small cap score is 53.03, below the four week moving average score of 54.71. The average small cap stock is trading -28.18% below its 52 week high, -2.03% below its 200 dma, and has 8.28 days to cover held short.
Utilities are the top scoring small cap sector. Technology, services, and financials also score above average. Industrial goods and healthcare score in line with the universe average score. Consumer goods and basics score below average.
Specialized semiconductor (MPWR, QLGC) is the top scoring small cap industry. Home Healthcare (AFAM, LHCG, GTIV) scores highly and benefits from industry consolidation and demographic trends. Staffing (KFRC, CCRN) demand historically peaks into year end. Restaurants (RRGB, BJRI, SONC) benefit from rising foot traffic and retail sales through the holiday reporting season. Semi ICs (EMKR, OPLK, TQNT, OVTI) are high scoring on rising sales of consumer electronics and increasing demand tied to the internet of Things.
No small cap basics group scores above average. In consumer goods, focus on home furnishings (ETH). The best financials industries are P&C insurers (MIG, STFC, HMN) and regional banks (TCBK, TBBK, LKFN). In healthcare, concentrate on home healthcare, medical instruments (ANGO, CMN, MMSI, ATRI, VASC), and specialized health services (USPH, AHS). The top industrial goods basket is aerospace/defense (TASR, LMIA). In services, concentrate on staffing, restaurants, and specialty retailers (WMAR, HZO). Specialized semiconductors, semi ICs, and computer peripherals (PLNR, ALOT) score highest across technology.
