Mega-Cap Factor Digest

Factor rankings & momentum backtest

A 42-name mega-cap universe — the subset of large U.S. companies this project's free data source actually serves (~10% of the S&P 500). This is not the S&P 500 and not "the market"; it is a mega-cap subset. Snapshot as of 2026-08-10.

Momentum backtest — top tercile vs equal-weight benchmark, net of costs

Both the in-sample and the out-of-sample windows are shown. The out-of-sample window is the honest test; the in-sample number alone is not the story.

WindowTop tercile CAGRBenchmark CAGR Top max drawdownTop SharpeVerdict
In-sample18.9%10.4%-19.9%0.86beat benchmark
Out-of-sample26.3%25.7%-11.3%1.43beat benchmark
Full period23.0%18.7%-19.9%1.12beat benchmark

On the value & quality factors

Value and quality scores are shown below for completeness but are low-confidence on this universe: it is ~42 mega-caps with no small- or mid-cap cross-section, so sector-relative value and quality comparisons rest on very few peers. Only momentum is backtested here; value and quality are not backtested for lack of historical fundamentals depth. They are labelled, not silently dropped.

Current factor ranking — all inputs shown

Ranked by composite z-score. Every input is visible; no row is a single highlighted pick.

#TickerSectorComposite z Momz Valz Qual MomentumROE (TTM)
1FDXIndustrials0.710.551.510.0977.3%14.0%
2AMDTechnology0.652.39-0.580.13223.6%9.6%
3TGTConsumer Defensive0.55-0.011.440.2233.5%21.0%
4INTCTechnology0.423.00-0.46-1.27455.6%-12.9%
5CFinancial Services0.360.291.06-0.2756.8%8.4%
6ADBETechnology0.35-0.861.320.60-33.9%62.8%
7CVXEnergy0.29-0.181.040.0220.0%10.8%
8TCommunication Services0.28-0.701.71-0.16-21.2%19.5%
9UNHHealthcare0.280.560.140.1378.2%13.5%
10GMConsumer Cyclical0.270.180.90-0.2548.4%3.1%
11CSCOTechnology0.270.540.000.2577.1%24.5%
12HCAHealthcare0.26-0.310.880.229.6%-104.0%
13AAPLTechnology0.250.12-0.451.0843.9%119.9%
14XOMEnergy0.240.020.550.1635.3%12.6%
15LMTIndustrials0.14-0.120.140.4124.7%71.7%
16PEPConsumer Defensive0.14-0.440.660.20-0.8%47.4%
17PYPLFinancial Services0.10-0.830.880.26-31.5%24.7%
18JNJHealthcare0.070.25-0.340.3053.6%24.8%
19WFCFinancial Services0.06-0.230.44-0.0415.6%12.6%
20VZCommunication Services0.05-0.370.57-0.044.8%15.6%
21AMZNConsumer Cyclical0.04-0.300.48-0.0410.0%24.5%
22MSFTTechnology-0.00-0.750.530.21-25.5%30.2%
23NVDATechnology-0.05-0.22-0.350.4216.9%81.7%
24BACFinancial Services-0.080.02-0.03-0.2435.7%11.2%
25GEIndustrials-0.10-0.02-0.710.4432.7%50.9%
26NKEConsumer Cyclical-0.11-0.920.430.16-38.7%20.9%
27KOConsumer Defensive-0.13-0.15-0.370.1521.9%39.6%
28SBUXConsumer Cyclical-0.13-0.18-0.350.1519.6%-25.8%
29TSLAConsumer Cyclical-0.17-0.09-0.580.1726.5%4.4%
30PFEHealthcare-0.18-0.370.33-0.504.9%5.1%
31DISCommunication Services-0.19-0.610.12-0.07-14.1%7.8%
32GSFinancial Services-0.190.20-0.31-0.4649.6%17.1%
33WMTConsumer Defensive-0.21-0.29-0.620.2811.4%24.1%
34JPMFinancial Services-0.27-0.18-0.48-0.1619.5%17.4%
35GOOGLCommunication Services-0.290.61-0.73-0.7582.3%38.1%
36ABBVHealthcare-0.38-0.08-1.00-0.0727.7%-106.5%
37COSTConsumer Defensive-0.41-0.50-1.110.40-5.9%26.4%
38VFinancial Services-0.46-0.36-1.560.545.9%64.2%
39NFLXCommunication Services-0.52-0.91-0.780.12-37.8%45.3%
40METACommunication Services-0.62-0.58-0.90-0.37-11.9%26.1%
41FConsumer Cyclical-0.67-0.05-0.88-1.0830.2%-20.7%
42BAIndustrials-0.89-0.46-0.94-1.29-2.2%39.9%

Methodology