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Last week the share price index of the Mid Cap Growth index fell by 1.8% compared to a 1.5% decline for the S&P 500. Gaining stocks in the Mid Cap Growth index numbered 164 or 38.3% of the index total compared to a 25.3% gaining stocks frequency within the S&P 500 and 35.2% across the 3548 stocks in the GEARS U.S. stocks universe.

There are 52 stocks in this index with unusually depressed share prices. Within that group we can find 44 stocks with current evidence of improving fundamentals. Last week there were 47 depressed-share-price stocks with improving fundamentals in this index .

There are 225 stocks in this index with unusually extended share prices. Within that group we can find 108 stocks with current evidence of deteriorating fundamentals. Last week there were 112 extended-share-price stocks with deteriorating fundamentals in this index .

We have collected sales data for 426 of the 428 companies in the Mid Cap Growth index representing100% of the capital value. The index capital weighted average sales growth rate is 33.4%. The proportion of index market capital accounted for by rising sales growth companies is down to 37.8%, compared to 42.5% last quarter.

Currently, sales growth is high in the record of the Mid Cap Growth index but lower than last quarter, and failing the rising sales growth test.

Gross margin data has been collected for 423 of the 428 companies in the Mid Cap Growth index, representing 99% of the capital value. The proportion of total market capital accounted for by rising gross margin companies is down to 59.1% compared to 59.7% last quarter.

The index is recording a rising gross margin. Inventories are up, diminishing the chance of a future increase in the gross margin. SG&A expenses are high in the record of the index, but rising. That implies that the index may be capable of accelerating EBITDA relative to sales with lower costs, but has yet to acheive a cost reduction. SG&A expenses are rising at a faster rate than the gross margin, producing a falling EBITDA margin. Interest costs are low in the record of the index and rising. Higher interest costs not only slow the free cash flow growth rate of the index, but are often associated with lower valuation.

Sectors showing growing strength in fundamentals compared to this time last quarter are Consumer Cyclicals, Basic Industry and Technology. The sectors in this index showing growing deterioration in fundamentals compared to this time last quarter are Consumer Growth, Consumer Staples and Energy.

We collected new accounting numbers from 2 companies in this index this week. Group fundamentals generally improved with those reports.

Hutchinson Tech is the only new buy idea in this index this week.

Dsp Communications Inc is the only new sell idea in this index this week.

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