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Adeptus Health Leads the Small-Cap Space with 3.6% Gain

Peter Neil

IHF Moves with the Market Trend, Rises 0.6%

(Continued from Prior Part)

IHF’s small-cap stocks reflect its performance

The small-cap (small capitalization) stocks of the iShares US Health Care Providers ETF (IHF) gave a return of 0.55% on November 10, 2015. The stocks underperformed IHF, which returned 0.6%, and outperformed the SPDR S&P 500 ETF (SPY), which returned 0.25%.

IHF holds ~22 small-cap stocks in its portfolio. Small-cap stocks account for ~11.7% of IHF’s portfolio. Out of IHF’s 22 small-cap stocks, 11 gave positive returns and 11 ended up in the red. The IHF’s small-cap stocks include stocks such as Select Medical Holdings (SEM), Kindred Healthcare (KND), and HMS Holdings (HMSY), which gave returns of -0.65%, -3.9%, and 1.9%, respectively.

The above graph reflects the performance of IHF’s small-cap stocks in comparison with the performances of IHF and SPY. Since November 2, 2015, IHF’s small-cap stocks have given a collective return of 5.2% as compared to IHF’s 1.7% and SPY’s 0.3% in the same period.

Adeptus rises 3.6%

Adeptus Health (ADPT) rose by 3.6% on November 10, 2015. The stock rose following its announcement that it had officially opened its first Texas hospital in Carrollton, Texas, with full Centers for Medicare & Medicaid Services (or CMS) certification from the joint commission.

ADPT closed at $63.19 and was trading below its 20-, 50-, and 100-day moving averages on November 10. ADPT’s RSI (relative strength index) stood at 32, indicating that it’s very close to being oversold. It recorded a five-day average trading volume of ~613,000 shares per day.

ADPT’s stock is trading well below its analyst median recommendation price of $110. It has a book value of $4.33. With its current price, the stock is trading at a price-to-book value (PBV) of 14.61x. ADPT has a weight of 0.45% in IHF’s portfolio.

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