Top Ranked Stocks To Buy This Week

One of the best ways to narrow a large universe of stocks to a manageable list is to screen for specific variables, which is why I developed a model for ranking stocks and launched E.B. Capital Markets, LLC back in 2003.

Our Power 7 model, outlined in my book, cuts across fundamentals, technicals and seasonality to find stocks likely to trade higher based on earnings growth, earnings beats, insider buying, money flow, short interest, PE analysis and calendar quarter seasonality.

The best scoring sector across our 1800 stock universe is industrial goods.

Aggregating all the scores by sector, industrial goods post the highest average score across our universe.

Healthcare also scores above average, with large- and mid-cap healthcare outscoring small cap.

Consumer and technology score below average, which suggests investors need to be industry and stock specific.

However, investors should watch technology stocks closely over the coming weeks as the basket offers seasonal strength into year-end. In fact, over the past ten years, the technology heavy NASDAQ 100 has had its best month for excess market return in October.

Source: www.seasonalinvestor.blogspot.com

Also, you'll notice sector scores are clustered at or near the average universe score. Typically, this suggests sector rotation is likely in the coming weeks, potentially with new leadership.

Drilling down to specific stocks, the following tables break out the highest scoring names across large, mid and small cap. The sector, score and the four week moving average score is provided for convenience.

The list serves as a valuable tool for identifying new names for your watch list.

LG CAP		10/2/2012	4 Week MA
Symbol	Sector	SCORE	SCORE
BEST
DHR	CONGLOMERATES	110	85
DGX	HEALTHCARE	105	91.25
FISV	TECHNOLOGY	105	83.75
LIFE	HEALTHCARE	105	93.75
AEP	UTILITIES	100	102.5
AON	FINANCIALS	100	91.25
ASML	TECHNOLOGY	100	80
CF	BASIC MATERIALS	100	91.25
MA	FINANCIALS	100	86.25
PXD	BASIC MATERIALS	100	83.75
RRC	BASIC MATERIALS	100	90
TAP	CONSUMER GOODS	100	91.25
TRP	UTILITIES	100	90
MID CAP		10/3/2012	4 Week MA
Symbol	Sector	SCORE	SCORE
BEST
CAKE	SERVICES	110	93.75
AGCO	INDUSTRIAL GOODS	105	76.25
UTHR	HEALTHCARE	105	102.5
ALXN	HEALTHCARE	100	101.25
BYI	SERVICES	100	73.75
EGN	UTILITIES	100	93.75
EV	FINANCIALS	100	83.75
FHN	FINANCIALS	100	83.75
HSNI	SERVICES	100	100
MSG	SERVICES	100	81.25
NEU	BASIC MATERIALS	100	90
NVR	INDUSTRIAL GOODS	100	82.5
PII	CONSUMER GOODS	100	88.75
VRSN	TECHNOLOGY	100	85
SMALL CAP		10/4/2012	4 Week MA
Symbol	Sector	SCORE	SCORE
BEST
FFIN	FINANCIALS	115	91.25
UHAL	SERVICES	115	98.75
AEGN	INDUSTRIAL GOODS	105	87.5
GBL	FINANCIALS	105	90
HOMB	FINANCIALS	105	87.5
LDR	SERVICES	105	95
ORB	INDUSTRIAL GOODS	105	88.75
UEIC	CONSUMER GOODS	105	91.25
UFCS	FINANCIALS	105	103.75
ACO	INDUSTRIAL GOODS	100	103.75
AIRM	SERVICES	100	98.75
CMN	HEALTHCARE	100	77.5
EHTH	FINANCIALS	100	80
EPAY	TECHNOLOGY	100	93.75
GVA	INDUSTRIAL GOODS	100	82.5
IPXL	HEALTHCARE	100	98.75
KAI	CONSUMER GOODS	100	72.5
LL	SERVICES	100	88.75
PLCE	SERVICES	100	91.25
PRO	TECHNOLOGY	100	87.5
SCHL	SERVICES	100	91.25
TREX	INDUSTRIAL GOODS	100	85

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in LL, TREX, PII over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)