3 AT&T INC (T) Grp 58 o$36.186090M Shares 99 Comp. Rating 79 EPS RS 89 ROE 14%

PROVIDES LOCAL EXCHANGE, LONG DISTANCE, NETWORK ACCESSAND WIRELESS SERVICES IN THE U.S. AND THE WORLD

+4% Ann. EPS Gro PE 13 Avg. D. Vol 28,258,100 Debt 88%Last Qtr Eps +15%5 Prior Qtr +14%5 Last Qtr Sales +22%0 Qtrs EPS ) 15% Yield 5.31%

Acc/Dis B-

Retakes 10-week line as it works on irregular base.

6 INTERCONTINENTAL EXCH (ICE) Grp 30 o$266.94107.5M Shares 98 Comp. Rating 94 EPS RS 93 ROE 8%

OPERATES GLOBAL MARKETS, 7 CLEARING HOUSES AND 12 EXCHANG-ES FOR TRADING ENERGY, COMMODITIES AND EQUITY INDEXES

+14% Ann. EPS Gro PE 23 Avg. Daily Vol 952,900 Debt 18%Last Qtr Eps +35%6 Prior Qtr +38%5 Last Qtr Sales +14%4 Qtrs EPS ) 15% Yield 1.12%Eps Due 2/4

Acc/Dis B-

Breaks out past 260.28 buy point of base-on-base.

9 FISERV (FISV) Grp 30 o$94.37224.0M Shares 97 Comp. Rating 91 EPS RS 92 ROE 24%

PROVIDES INTEGRATED INFORMATION AND ELECTRONIC COMMERCESYSTEMS AND SERVICES TO ABOUT 14,500 CLIENTS WORLDWIDE

+15% Ann. EPS Gro PE 25 Avg. D. Vol 1,301,800 Debt 113%Last Qtr Eps +20%5 Prior Qtr +17%5 Last Qtr Sales +4%2 Qtrs EPS ) 15%Eps Due 2/2

Acc/Dis B-

Forming flat base with 97.86 buy point.

12 HORMEL FOODS (HRL) Grp 5 o$82.02124.2M Shares 96 Comp. Rating 85 EPS RS 98 ROE 19%

PROCESSES MEAT AND FOOD PRODUCTS SUCH AS PORK, TURKEYAND SHELF-STABLE FOODS FOR THE RETAIL AND FOODSERVICE.

+14% Ann. EPS Gro PE 31 Avg. D. Vol 1,614,200 Debt 6%Last Qtr Eps +17%5 Prior Qtr +10%6 Last Qtr Sales -6%1 Qtrs EPS ) 15% Yield 1.41%Eps Due 2/16

Acc/Dis B-

Clears 80.88 buy point of flat base.

15 DR PEPPR SNAPPLE GR (DPS) Grp 18 o$95.53187.0M Shares 95 Comp. Rating 81 EPS RS 94 ROE 31%

MANUFACTURES OVER 50 BRANDS OF CARBONATED SOFT DRINKS,JUICES, READY-TO-DRINK TEAS AND OTHER BEVERAGES

+12% Ann. EPS Gro PE 24 Avg. D. Vol 1,430,900 Debt 113%Last Qtr Eps +10%5 Prior Qtr +7%6 Last Qtr Sales +3%0 Qtrs EPS ) 15% Yield 2.01%Eps Due 2/17

Acc/Dis B

Nearly 5% above 91.05 entry; support at 10-week line.

18 TYSON FOODS (TSN) Grp 5 o$54.31285.2M Shares 94 Comp. Rating 65 EPS RS 97 ROE 14%

PRODUCES BEEF, CHICKEN, PORK AND RELATED ALLIED PRODUCTSFOR GROCERY RETAILERS AND WHOLESALERS, MEAT DISTRIBUTORS,

+21% Ann. EPS Gro PE 17 Avg. D. Vol 5,474,800 Debt 62%Last Qtr Eps -5%6 Prior Qtr +11%6 Last Qtr Sales +4%0 Qtrs EPS ) 15% Yield 1.1%Eps Due 1/30e

Acc/Dis B-Sup/Demand 82

Trying to break out past 54.52 buy point of late-stage base.

1 FACEBOOK INC CL A (FB) Grp 7 o$115.092203M Shares 99 Comp. Rating 98 EPS RS 97 ROE 11%

A SOCIAL NETWORKING PLATFORM ENABLING MEMBERS TO STAYCONNECTED WITH FRIENDS AND FAMILY VIA FACEBOOK.COM.

+71% Ann. EPS Gro PE 50 Avg. D. Vol 28,654,500 Debt 0%Last Qtr Eps +46%5 Prior Qtr +33%5 Last Qtr Sales +52%11 Qtrs EPS ) 15%Eps Due 4/22eR&D 42%

Acc/Dis B-

In buy range after breakout over 110.75 buy point.

4 O'REILLY AUTOMOT (ORLY) Grp 23 o$265.2594.7M Shares 98 Comp. Rating 97 EPS RS 93 ROE 39%

OPERATES 4,366 AUTOMOTIVE PARTS STORES IN 43 STATES WITHPLANS TO OPEN 205 MORE (5%) IN 2015.

+24% Ann. EPS Gro PE 31 Avg. Daily Vol 903,100 Debt 69%Last Qtr Eps +25%5 Prior Qtr +20%6 Last Qtr Sales +11%24 Qtrs EPS ) 15%Eps Due 2/10

Acc/Dis B+

Forms cup base with 278.06 entry, RS line at new high.

7 COGNIZANT TECH A (CTSH) Grp 19 o$62.33602.0M Shares 98 Comp. Rating 93 EPS RS 76 ROE 23%

PROVIDES CUSTOM IT CONSULTING, TECHNOLOGY AND OUTSOURCINGSERVICES FOR COMPANIES.

+17% Ann. EPS Gro PE 21 Avg. D. Vol 4,390,500 Debt 12%Last Qtr Eps +15%6 Prior Qtr +20%5 Last Qtr Sales +23%2 Qtrs EPS ) 15%

Acc/Dis B-

Forming right side of cup-shaped base; 69.90 entry for now.

10 W E C ENERGY GROUP INC (WEC) Grp 4 o$56.09309.4M Shares 97 Comp. Rating 68 EPS RS 90 ROE 13%

PROVIDES UTILITY SERVICES TO 1.13 MIL ELECTRIC AND 1.09 MIL GASCUSTOMERS IN WISCONSIN AND MICHIGAN.

+5% Ann. EPS Gro PE 21 Avg. D. Vol 2,099,500 Debt 95%Last Qtr Eps +7%5 Prior Qtr 0%5 Last Qtr Sales +64%0 Qtrs EPS ) 15% Yield 3.23%

Eps Due 2/11e

Acc/Dis B+

In buy range 4% above 53.98 entry; strong RS line.

13 EQUINIX INC (EQIX) Grp 26 o$311.4459.3M Shares 96 Comp. Rating 85 EPS RS 94 ROE 5%

PROVIDES NETWORK-NEUTRAL COLOCATION, INTERCONNECTION ANDMANAGED SERVICES

+20% Ann. EPS Gro PE 86 Avg. Daily Vol 954,300 Debt 121%Last Qtr Eps -10%6 Prior Qtr +368%5 Last Qtr Sales +11%0 Qtrs EPS ) 15% Yield 2.17%Eps Due 2/18

Acc/Dis B-Sup/Demand 84

2% above 304.83 flat-base buy point.

16 SMUCKER JM (SJM) Grp 28 o$129.13100.5M Shares 95 Comp. Rating 67 EPS RS 93 ROE 7%

MANUFACTURES COFFEE, PEANUT BUTTER, SHORTENING AND OILS,FRUIT SPREADS, BAKING MIXES AND PET FOOD PRODUCTS.

-3% Ann. EPS Gro PE 28 Avg. Daily Vol 942,500 Debt 84%Last Qtr Eps +13%5 Prior Qtr +7%5 Last Qtr Sales +40%0 Qtrs EPS ) 15% Yield 2.08%Eps Due 2/13e

Acc/Dis B

9% past 118.60 buy point in cup-with-handle base.

19 NEXTERA ENERGY INC (NEE) Grp 8 o$112.98455.9M Shares 93 Comp. Rating 75 EPS RS 89 ROE 12%

ENGAGED IN THE GENERATION, TRANSMISSION, DISTRIBUTION ANDSALE OF ELECTRICITY TO 5.0 MIL CUSTOMER ACCOUNTS IN FLORIDA.

+7% Ann. EPS Gro PE 20 Avg. D. Vol 2,557,500 Debt 122%Last Qtr Eps +14%5 Prior Qtr +3%6 Last Qtr Sales -13%0 Qtrs EPS ) 15% Yield 2.73%Eps Due 4/29e

Acc/Dis B+

Extended 7% above 105.95 early entry of irregular pattern.

2 ALPHABET INC CL A (GOOGL) Grp 7 o$770.77288.4M Shares 99 Comp. Rating 91 EPS RS 96 ROE 18%

PROVIDES ONLINE SEARCH, INTERNET CONTENT SERVICES, AND WEB-BASED AND DESKTOP SOFTWARE APPLICATIONS VIA GOOGLE.COM.

+13% Ann. EPS Gro PE 28 Avg. D. Vol 2,246,800 Debt 3%Last Qtr Eps +18%5 Prior Qtr +17%5 Last Qtr Sales +13%2 Qtrs EPS ) 15%Eps Due 1/29eR&D 15%

Acc/Dis B-

Extended past 713.43 entry as it regains 10-week line.

5 CONSTELLTN BRANDS A (STZ) Grp 13 o$154.36167.1M Shares 98 Comp. Rating 94 EPS RS 97 ROE 16%

PRODUCES AND DISTRIBUTES BRANDED WINES AND SPIRITS IN THEU.S., CANADA, NEW ZEALAND AND ITALY.

+38% Ann. EPS Gro PE 29 Avg. D. Vol 1,471,900 Debt 124%Last Qtr Eps +15%6 Prior Qtr +41%5 Last Qtr Sales +6%4 Qtrs EPS ) 15% Yield 0.8%Eps Due 4/9e

Acc/Dis B+

Well extended from 122.23 entry, pullbacks to 10-week line.

8 VERIZON COMMUN (VZ) Grp 58 o$50.764028M Shares 98 Comp. Rating 92 EPS RS 88 ROE 52%

PROVIDES LOCAL EXCHANGE, NETWORK ACCESS, DATA, WIRELESSAND INFORMATION SERVICES IN THE U.S. AND OVER 150 COUNTRIES

+20% Ann. EPS Gro PE 13 Avg. D. Vol 16,565,000 Debt 899%Last Qtr Eps +25%5 Prior Qtr +17%5 Last Qtr Sales +3%2 Qtrs EPS ) 15% Yield 4.45%

Acc/Dis B

Just below 50.96 buy point of long consolidation.

11 INTUITIVE SURGICAL (ISRG) Grp 49 o$543.1635.9M Shares 96 Comp. Rating 90 EPS RS 89 ROE 17%

DEVELOPED AN ADVANCED SURGICAL SYSTEM DESIGNED TO IM-PROVE OPEN SURGERY AND MINIMALLY INVASIVE SURGERY.

+1% Ann. EPS Gro PE 28 Avg. Daily Vol 375,800 Debt 0%Last Qtr Eps +20%6 Prior Qtr +34%5 Last Qtr Sales +12%3 Qtrs EPS ) 15%R&D 8%

Acc/Dis B+

2% below 556.70 cup with handle entry; support at 10-week.

14 DOLLAR GENERAL CORP (DG) Grp 37 o$76.35288.0M Shares 95 Comp. Rating 87 EPS RS 88 ROE 19%

OPERATES 11,215 DISCOUNT MERCHANDISE STORES IN 40 STATES;PLANS TO OPEN ABOUT 700 (6%) MORE IN 2014-15.

+10% Ann. EPS Gro PE 20 Avg. D. Vol 3,522,700 Debt 46%Last Qtr Eps +11%6 Prior Qtr +14%6 Last Qtr Sales +7%0 Qtrs EPS ) 15%

Acc/Dis BSup/Demand 76

Building right side of cup pattern that began in July.

17 PAYPAL HOLDINGS INC (PYPL) Grp 63 o$37.081111M Shares 94 Comp. Rating 96 EPS RS 68 ROE 16%

PROVIDES DIGITAL AND MOBILE PAYMENTS ON BEHALF OF CONSUM-ERS AND MERCHANTS WORLDWIDE.

+16% Ann. EPS Gro PE 29 Avg. D. Vol 8,554,200 Debt 5%Last Qtr Eps +24%6 Prior Qtr +29%5 Last Qtr Sales +17%2 Qtrs EPS ) 15%Eps Due 4/28eR&D 11%

Acc/Dis B-

Regains 10-week line as it consolidates; 12% off high.

20 SOUTHERN CO (SO) Grp 8 o$49.90890.8M Shares 93 Comp. Rating 66 EPS RS 90 ROE 12%

HOLDING CO ENGAGED IN GENERATION, TRANSMISSION AND DISTRI-BUTION OF ELECTRICITY IN AL, GA, FL, MS, NC, SC, TX AND NM.

+3% Ann. EPS Gro PE 18 Avg. D. Vol 4,867,000 Debt 100%Last Qtr Eps +7%5 Prior Qtr +4%5 Last Qtr Sales +1%

0 Qtrs EPS ) 15% Yield 4.35%Eps Due 2/3

Acc/Dis B

Yearlong base with multiple tight areas. Buy point at 53.26.

SMARTSELECT® COMPOSITE RATING Rel Annual LastQtrNextQtr LastQtr Mgt Spn-EPS Str EPSEst EPS EPS Sales Pretax Own shp

6Rank Company Price Rtg Rtg %Chg %Chg %Chg %Chg ROE mrgn % Rtg

Big-Cap 20 Defensive,Growth Names Creep In

BIG CAP 20

B Y A L A N R . E L L I O T T

INVESTOR’S BUSINESS DAILY

The market is back in an uptrend,but the S&P 500 is still tradingbelow its high from May. It is easy toseeeightmonthsofastrugglingmar-ket reflected in IBD’s blue chip BigCap20list.Fully14stocksonthecur-rent listqualify asdefensive names.

Utilities including Southern En-ergySO, Consolidated EdisonED

and WEC Energy GroupWEC are de-fensive because their prices to con-sumers are generally locked andcustomers have little choice but touse the product. Also, the stockstypically offer healthy dividends.

Another factor: Utilities are a seg-ment into which mutual fundsworking to maintain minimum lev-els of investment rotate into duringchoppy markets. This demand canhold share prices steady or evendrive them higher while the gener-al market corrects.

On the other hand, four stocks onthe list qualify as solid growthstocks: Cognizant TechnologiesCTSH, EquinixEQIX and Intuitive Sur-gicalISRG.

McDonald’sMCD carries somecom-bined traits of defensive andgrowth stocks, giving it an interest-ing leg up in the current market.The fast-food chain’s turnaroundunder new chief executive SteveEasterbrook has made the stock agrowth contender with regard to anumber of fundamental and techni-cal attributes: earnings growth,same-store-sales, relative strengthand accumulation/distribution.

McDonald’s still falls short on thestandard punch list of CAN SLIMelements. But the turnaround hasmade the stock much more attrac-tive for investors looking forhealthy dividend names and/or

double-threat defensive plays.McDonald’s, which fell off the list

Monday, was extended after lastweek’s bounce off its 10-week mov-ing average, and from a breakout inOctober.

Dollar GeneralDG was a double-threat growth/defensive stockfrom its re-entry to public marketsin November 2009 through July2012. It and its now-merged com-petitors Family Dollar and DollarTreeDLTR were grabbing marketshare from Wal-MartWMT and buy-ing up smaller, regional chainsacross the U.S. Dollar General’sEPS growth is forecast at a healthy13% for the year ended in January,and 15% in 2017. Revenue growthhas slowed to high single digits.

O’Reilly AutomotiveORLY torquedup nearly 1290% from Oct. 2008 toOct. 2015. During that period,when the market was choppy or ina correction, auto parts chainswere seen as dual growth/defen-siveplays because they wereconsol-idating and gain market sharewhile benefitting from consumersholding on to their cars longer thanthey had in the past.

O’Reilly, which announces its Q4results on Feb. 10, is forecast to re-main in the camp through 2015with full EPS growth forecasts of24%. Revenue growth is seen slow-ing to 8%. For 2016, analyst consen-sus puts EPS growth at 14% andsales growth at 7%.

Big Cap 20 stocks tend to be sta-ble, healthy performers, but theyare not a list of pick-and-play buyopportunities. Investors need tostudy the fundamentals and makesure they understand both the com-pany and its value proposition. Sud-den changes in market directioncan generate significant changes inthe companies on the list.

The Big Cap 20 is a computer-generated watch list of leadinggrowth stocks. IBD uses earn-ings, sales & other fundamentalfacts plus strong price action tocreate your weekly snapshot. Donot buy a stock solely on it beingin the list. Scan charts for stocksnear buy points. See Inves-tors.com to research stocks fur-ther. Be sure to read archived sto-ries & analyze company withIBD’s Stock Checkup.

1 Facebook Cl A 115.1 99 98 97 +36 +46 +48 +52 11 39 4 B7Mobile ads continue to generate strong returns for social network.

2 Alphabet Inc Cl A 770.8 99 91 96 +14 +18 +18 +13 18 33 0 BAlphabet represents a major restructuring of company.

3 AT&T Inc 36.18 99 79 89 +4 +15 +10 +22 14 15 0 CTelecom broadens offerings with home security, monitoring system.

4 O'Reilly Auto 265.3 98 97 93 +23 +25 +18 +11 39 16 4 BLonger lifespan for cars benefits auto parts retailer.

5 Constelltn Brnds 154.4 98 94 97 +21 +15 +11 +6 16 21 5 BLeading importer of Mexican beers sets major brewery expansion.

6 Intercontl Exch 266.9 98 94 93 +27 +35 +16 +14 8 37 2 BRuns commodity, energy, equity exchanges, such as NYSE Euronext.

7 Cognizant Tech A 62.33 98 93 76 +16 +15 +16 +23 23 20 1 BTechnology consultant has made 16 acquisitions since 2010.

8 Verizon 50.76 98 92 88 0 +25 +4 +3 52 17 0 CIts Go90 mobile video services nearing 1 million users.

9 Fiserv 94.37 97 91 92 +14 +20 +12 +4 24 23 2 BCompany is a leader in mobile and other electronic payments.

10 WEC Energy 56.09 97 68 90 +3 +7 +14 +64 13 19 1 CGenerates and distributes electric energy, including alternative.

11 Intuitive Surgicl 543.2 96 90 89 +7 +20 +21 +12 17 39 4 BRobotic surgery expanding within medical sector; company is debt free.

12 Hormel Foods 82.02 96 85 98 +9 +17 +4 -6 19 11 4 CProduces and markets food products world wide; industry group strong

13 Equinix Inc 311.4 96 85 94 +76 -10 +102 +11 5 7 1 BData network services firm tries to expand further into Europe.

14 Dollar General 76.35 95 87 88 +13 +11 +8 +7 19 8 0 BDiscount retailer offers a myriad of products.

15 Dr Peppr Snappl 95.53 95 81 94 +9 +10 +11 +3 31 17 1 CCompany's fundamentals superior to Coca Cola and PepsiCo.

16 JM Smucker 129.1 95 67 93 +36 +13 +5 +40 7 11 1 CIts branded food products include Folgers, Smucker, Pillsbury.

17 Paypal Holdings 37.08 94 96 68 +14 +24 +17 +17 16 27 8 BThis eBay subsidiary enables consumers and merchants to get paid.

18 Tyson Foods 54.31 94 65 97 +14 -5 +16 +4 14 4 3 CMeat producer digests acquisitions; industry group strong.

19 NextEra Energy 113.0 93 75 89 +7 +14 -7 -13 12 20 1 DGenerates and distributes electrical energy (including alternative).

20 Southern Co 49.90 93 66 90 +2 +7 +13 +1 12 21 1 DAtlanta-based utility outperformed S&P in past two bear markets.

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