This is the 3rd week in a row that every industry we followed managed to post gains. We have a bunch of newcomers that made it to the top of the list last week, but a lot of the usual suspects are still lagging at the bottom. Today might be another interesting day as world markets were up BIG overnight.
Here are the best and worst performing industries for the week.
Performance versus the S&P 500| Rank | Industry | % Return +/- the S&P | % up/down |
|---|
| 1 | ENERGY-ALTERNATE SOURCES | 25.58% | 33.33 % |
| 2 | STEEL | 6.56% | 13.13% |
| 3 | HOME FURNISHING-APPLIANCE | 5.86% | 12.39% |
| 4 | CONSTRUCTION-BUILDING SERVICES | 5.55% | 12.06% |
| 5 | MACHINERY-ELECTRICAL | 5.01% | 11.49% |
| 6 | CONS PROD-MISC STAPLES | 4.89% | 11.36% |
Here are the week's poorest performing industries:
Performance versus the S&P 500| Rank | Industry | % Return +/- the S&P | % up/down |
|---|
| 59 of 59 | TOBACCO | -5.66% | 0.16% |
| 58 | OIL&GAS PRODUCTION-PIPELINE | -4.39% | 1.50% |
| 57 | UTILITY-ELEC PWR | -4.32% | 1.58% |
| 56 | UTILITY-GAS DISTR | -4.00% | 1.92% |
| 55 | UTILITY-GAS DISTR | -2.49% | 3.53% |
| 54 | BANKS & THRIFTS | -2.47% | 3.54% |
Electronics just missed our list of top performing industries, but electronics stock OSI Systems, Inc. (OSIS) hit the target in our weekly stock screens.
OSI Systems, Inc. engages in the design, development, manufacture, and sale of specialized electronic systems and components for applications in homeland security, healthcare, and defense and aerospace markets worldwide. The company operates in three divisions: Security, Healthcare, and Optoelectronics and Manufacturing.
We found 3 reasons why we believe OSIS could be headed higher soon.
- Positive technical analysis traits in its stock chart.
- Solid fundamentals.
A possible catalyst that could ignite sales and earnings growth
On OSIS's stock chart, we find a few of setups that we believe point to a higher stock price to come.
- Two converging trends and one will have to give way to the other.
- The stock price crossing above its 50 day moving average.
- A positive MACD crossover under zero.
Our fundamental stock research also revealed a company that we diagnosed as healthy. OSIS's vital signs are strong. The technology company trades at a forward P/E of 14.74 which is just about 50% of next year's projected earnings per share growth of 29.8%. OSI's PEG ratio is a hair over 1. A low PEG ratio is important because companies with a PEG ratio of 1 or under tend to outperform their peers and the market. The company trades at .44 times sales and almost right on its book value of 15.11, both of these valuations give us reason to believe OSIS stock price has room to move higher.
The Wall Street Journal recently reported that OSI could benefit from the stimulus bill. They wrote, "funds could also be spent to fill some or all of the roughly 1,300 slots left at U.S. airport checkpoints for advanced X-ray machines to screen carry-on bags. Only two companies, Rapiscan Systems, a subsidiary of OSI Systems Inc., and Smiths Detection, a division of Smiths Group, sell machines currently certified."
