In Search Of Strong Industries

11/25/2013


While we don't advise subscribers to buy or sell any single industry, neither do we ignore industry trends.

This week we sifted through the more than 150 industry groups we track to identify those with the most appeal. To make our list, the stocks in the industry had to average Quadrix Overall scores of at least 60, with similarly high sector-specific scores. Traditional Quadrix scores rank stocks relative to our universe of more than 4,600 companies, while sector-specific scores compare stocks within sectors.

The table below lists industries that average at least 60 in all three Quadrix scores. Not surprisingly, we've found attractive stocks in several of those industries, including five Focus List Buys — Alliance Data Systems ($248; ADS), Capital One Financial ($69; COF), Lear ($79; LEA), Helmerich & Payne ($79; HP), and Magna International ($85; MGA).

Looking for sector-specific scores for every stock in the S&P 1500 Index? Visit www.DowTheory.com/Go/Sectors. To access traditional Quadrix scores for every stock in our universe, broken down into 152 industry groups, check out our Group Studies report at www.DowTheory.com/Go/Groups. You can analyze the data online or download it in an Excel spreadsheet.

INDUSTRIES WITH APPEAL
Only 12 industries in the S&P 1500 Index with more than 10 companies averaged at least 60 in Quadrix Overall and both sector-specific scores, and we recommend stocks in six of them. All Quadrix scores are percentile ranks, with 100 the best.
--------------------------- Quadrix Scores ---------------------------
Industry (No. Of Companies)
Company (Price; Ticker)
Overall
12-
Factor
Reranked
Overall
Average
Minimum
Auto Parts & Equipment (38)
64
63
66
64
63
Lear ($79; LEA)
99
99
100
99
99
Magna International ($83; MGA)
98
97
99
98
97
Consumer Finance (23)
69
69
67
69
67
American Express ($82; AXP)
71
77
52
67
52
Capital One Financial ($69; COF)
97
84
98
93
84
Data Processing (48)
67
62
73
67
62
Alliance Data Systems ($248; ADS)
71
84
73
76
71
Visa ($197; V)
67
47
66
60
47
Life & Health Insurance (25)
75
67
69
70
67
Aflac ($66; AFL)
85
60
89
78
60
Managed Health Care (12)
80
89
89
86
80
Cigna ($85; CI)
84
68
90
80
68
Oil & Gas Drilling (20)
61
65
64
63
61
Helmerich & Payne ($79; HP)
99
59
93
84
59

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