Relative Strength & Market Cap
(TMF Sheard)
LEXINGTON, KY. (July 9, 1998) -- In the past I've listed on occasion the stocks with the best six-month total returns (my favorite relative strength test). Today I want to put a little twist on that topic and list the best relative-strength stocks in various market capitalization ranges.
This year has started out with a definite large-cap orientation. For example, in the Value Line Investment Survey universe, there are 1,333 American stocks that carry some kind of timeliness ranking. (Value Line removes those rankings for stocks in mergers, so I typically exclude stocks without any kind of ranking.)
Of those 1,333, there are 499 small-cap stocks (market caps of less than $1 billion). The average return for this group over the first half of 1998 is a pitiful 0.82%.
The 517 mid-caps in the group (market caps from $1 billion to $5 billion) have returned an average of only 7.30% in the first half of the year.
The remaining 317 stocks, however -- the large-caps with market caps above $5 billion -- have averaged 17.04%.
Here's a look at the best from each group, the twenty stocks from each category with the best total returns over the previous six months.
Large-Caps
145.5% America Online <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AOL)") else Response.Write("(NYSE: AOL)") end if %>
131.0% Capital One Fin'l <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: COF)") else Response.Write("(NYSE: COF)") end if %>
118.2% Dell Computer <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: DELL)") else Response.Write("(Nasdaq: DELL)") end if %>
112.2% Unisys Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: UIS)") else Response.Write("(NYSE: UIS)") end if %>
106.5% Ascend Communic. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ASND)") else Response.Write("(Nasdaq: ASND)") end if %>
77.8% WellPoint Health Ntwks <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WLP)") else Response.Write("(NYSE: WLP)") end if %>
75.6% Gap (The) Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GPS)") else Response.Write("(NYSE: GPS)") end if %>
73.0% Kmart Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KM)") else Response.Write("(NYSE: KM)") end if %>
71.8% Lowe's Cos. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LOW)") else Response.Write("(NYSE: LOW)") end if %>
70.2% Berkshire Hathaway <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BRK.A)") else Response.Write("(NYSE: BRK.A)") end if %>
66.4% Microsoft Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: MSFT)") else Response.Write("(Nasdaq: MSFT)") end if %>
66.0% EMC Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: EMC)") else Response.Write("(NYSE: EMC)") end if %>
64.6% Warner-Lambert <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WLA)") else Response.Write("(NYSE: WLA)") end if %>
63.3% Cisco Systems <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCO)") else Response.Write("(Nasdaq: CSCO)") end if %>
60.7% Black & Decker <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BDK)") else Response.Write("(NYSE: BDK)") end if %>
60.1% Computer Sciences <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CSC)") else Response.Write("(NYSE: CSC)") end if %>
60.1% Kansas City Southern Ind. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KSU)") else Response.Write("(NYSE: KSU)") end if %>
58.5% Boston Scientific <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BSX)") else Response.Write("(NYSE: BSX)") end if %>
57.7% Wal-Mart Stores <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WMT)") else Response.Write("(NYSE: WMT)") end if %>
57.7% BMC Software <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: BMCS)") else Response.Write("(Nasdaq: BMCS)") end if %>
Mid Caps
117.5% Apple Computer <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AAPL)") else Response.Write("(Nasdaq: AAPL)") end if %>
105.3% Best Buy Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BBY)") else Response.Write("(NYSE: BBY)") end if %>
94.6% Informix Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: IFMX)") else Response.Write("(Nasdaq: IFMX)") end if %>
89.6% Learning Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TLC)") else Response.Write("(NYSE: TLC)") end if %>
87.0% Hunt (J.B.) <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: JBHT)") else Response.Write("(Nasdaq: JBHT)") end if %>
77.9% Cablevision Sys. 'A' <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CVC)") else Response.Write("(NYSE: CVC)") end if %>
75.3% WinStar Communic. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: WCII)") else Response.Write("(Nasdaq: WCII)") end if %>
74.5% FORE Systems <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: FORE)") else Response.Write("(Nasdaq: FORE)") end if %>
71.3% ASA Holdings <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ASAI)") else Response.Write("(Nasdaq: ASAI)") end if %>
70.1% Jones Apparel Group <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: JNY)") else Response.Write("(NYSE: JNY)") end if %>
69.0% PacifiCare Health 'A' <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PHSYA)") else Response.Write("(Nasdaq: PHSYA)") end if %>
68.6% Lexmark Int'l 'A' <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LXK)") else Response.Write("(NYSE: LXK)") end if %>
68.0% Vitesse Semiconductor <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VTSS)") else Response.Write("(Nasdaq: VTSS)") end if %>
67.1% Federal-Mogul <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FMO)") else Response.Write("(NYSE: FMO)") end if %>
60.6% Novell Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NOVL)") else Response.Write("(Nasdaq: NOVL)") end if %>
58.6% Fingerhut Cos. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FHT)") else Response.Write("(NYSE: FHT)") end if %>
58.1% Williams-Sonoma <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WSM)") else Response.Write("(NYSE: WSM)") end if %>
56.1% Intuit Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INTU)") else Response.Write("(Nasdaq: INTU)") end if %>
52.3% Dollar Tree Stores <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: DLTR)") else Response.Write("(Nasdaq: DLTR)") end if %>
51.8% Shaw Inds. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SHX)") else Response.Write("(NYSE: SHX)") end if %>
Small Caps
135.9% Roberts Pharmac. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RPC)") else Response.Write("(NYSE: RPC)") end if %>
117.1% Just For Feet <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: FEET)") else Response.Write("(Nasdaq: FEET)") end if %>
101.7% LADD Furniture <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: LADF)") else Response.Write("(Nasdaq: LADF)") end if %>
90.5% Blair Corp. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BL)") else Response.Write("(NYSE: BL)") end if %>
87.5% Health Mgmt. Systems <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: HMSY)") else Response.Write("(Nasdaq: HMSY)") end if %>
78.1% Good Guys <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GGUY)") else Response.Write("(Nasdaq: GGUY)") end if %>
74.5% GRC Int'l <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GRH)") else Response.Write("(NYSE: GRH)") end if %>
72.0% Handleman Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HDL)") else Response.Write("(NYSE: HDL)") end if %>
64.1% Haverty Furniture <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: HAVT)") else Response.Write("(Nasdaq: HAVT)") end if %>
61.0% Acclaim Entertainment <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AKLM)") else Response.Write("(Nasdaq: AKLM)") end if %>
58.4% AnnTaylor Stores <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ANN)") else Response.Write("(NYSE: ANN)") end if %>
56.3% Shopko Stores <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SKO)") else Response.Write("(NYSE: SKO)") end if %>
55.5% IDEXX Labs. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: IDXX)") else Response.Write("(Nasdaq: IDXX)") end if %>
54.1% Brown Group <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BG)") else Response.Write("(NYSE: BG)") end if %>
48.0% Worthington Foods <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: WFDS)") else Response.Write("(Nasdaq: WFDS)") end if %>
46.4% Talbots Inc. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TLB)") else Response.Write("(NYSE: TLB)") end if %>
45.9% Barry (R.G.) <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RGB)") else Response.Write("(NYSE: RGB)") end if %>
45.6% Spiegel Inc. 'A' <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SPGLA)") else Response.Write("(Nasdaq: SPGLA)") end if %>
45.4% Bindley Western <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BDY)") else Response.Write("(NYSE: BDY)") end if %>
45.2% Vanguard Cellular Sys. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: VCELA)") else Response.Write("(Nasdaq: VCELA)") end if %>
Whether the second half of 1998 brings similar results or the reverse image is anyone's guess. But whether you separate stocks into classes by size or not, it's useful to make some relative strength comparisons to see which stocks are actually performing well and which merely represent unrealized potential.
Check out the latest file updates for the Workshop:
New Rankings
| 1998 Returns
| New Database
[Robert Sheard is the author of the The Unemotional Investor (Simon & Schuster, 1998) available now at Amazon.com and your local bookseller.]