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IHI’s Small Caps Outperformed the Market

Peter Neil

IHI Gave Up Half of Its Gains from December 1

(Continued from Prior Part)

IHI’s small caps outperform SPY

Small-cap stocks in the iShares US Medical Devices ETF (IHI) went down by 0.15% and outperformed the SPDR S&P 500 ETF (SPY) and the IHI itself, which gave returns of -1% and -0.55%, respectively. As of December 2, 2015, IHI holds 16 small-cap stocks in its portfolio. The combined weight of these small-cap stocks stood at ~4% of IHI’s portfolio. Out of 16 small-cap stocks, eight stocks gave positive returns while another eight stocks gave negative returns. IHI small caps include stocks like Nevro (NVRO), Nxstage Medical (NXTM), and Cardiovascular Systems (CSII), which gave returns of 0.35%, 1.8%, and -1.4%, respectively.

The above graph reflects the performance of IHI’s small caps in comparison to IHI and SPY. Since the beginning of December 2015, IHI’s small caps have outperformed the IHI and SPY. IHI’s small caps returned 0.85%, IHI has returned 0.5%, and SPY has returned -0.05%.

Leaders and laggards

IHI small caps were led by Nxstage Medical (NXTM), which rose 1.8%. The stock gained for the second consecutive day after it presented at the Piper Jaffray conference. The company spoke about its products and the possible launches of those products. NXTM closed at $20.18 and was trading above its 20-day, 50-day, and 100-day moving averages. The RSI (relative strength index) stood at 61, indicating that the stock is neither overbought nor oversold. NXTM has a book value of $2.97 per share. At its current price, the stock is trading at a price-to-book value of 6.8x. NXTM has a weight of 0.4% in IHI’s portfolio.

Cardiovascular Systems (CSII) was the worst performer with a fall of 1.4%. The stock fell for the fourth consecutive day. CSII closed at $15.44 and was trading below 100-day moving averages. CSII has a book value of $4.03. With its current market price, the stock is trading at a price-to-book value of 3.84x. CSII has a weight of 0.15% in IHI’s portfolio.

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