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XLV Trades Near 100-Day Moving Average, Rises 0.3%

Peter Neil

XLV Gets Stronger with Large-Cap Holdings Gains

XLV rises o.3%

The market continues to be choppy. On Tuesday, November 24, 2015, the markets regained whatever was lost on Monday, November 23, increasing marginally. The S&P 500 rose 0.1%, and the Dow Jones Industrial Average rose 0.1%.

Biotech ETFs and stocks had a mixed day on Monday with most biotech ETFs rising or falling marginally. The iShares Nasdaq Biotechnology ETF (IBB) fell 0.2%, the Health Care Select Sector SPDR ETF (XLV) rose 0.3%, while the SPDR S&P 500 ETF (SPY) rose 0.15% on November 24.

XLV closed at $71.56 on November 24, trading 0.35% below the 100-day moving average price of $71.89 and 0.2% above the 20-day moving average price of $71.40. The trading volumes were relatively low, with ~7.1 million shares being traded compared to the five-day average trading volume of ~10.2 million shares per day. Out of XLV’s 56 holdings, 30 stocks gave positive returns, while 26 stocks ended up in the red.

The above table reflects the moving averages and returns of XLV, SPY, and a few top performing stocks for the day. On a YTD (year-to-date) basis, XLV has outperformed SPY with returns of 5.2% and 1.9%, respectively.

Tenet Healthcare rises 4.7%

Tenet Healthcare (THC) rose for the third consecutive day and rose 4.7% on November 24, 2015. The trading volumes were down, with ~2.4 million shares traded compared to the five-day average trading volume of ~2.8 million shares per day.

THC closed at $33.69 and was trading at a discount of 15.4% to the 100-day moving average price of $44.76. However, it was trading 1.5% higher than the 20-day moving average price of $32.61. The trailing 12-month (or TTM) price-to-earnings (or PE) ratio stood at 187.16x.

THC has a book value of $8.05 per share. With its current market price, the stock is trading at a price-to-book value (or PBV) of 4.18x. However, the fund’s industry average is 2.73x, indicating that THC’s PBV is above the average. THC has a weight of ~0.12% in XLV’s portfolio.

Other stocks that performed well on November 24 were Allergan (AGN), HCA Holdings (HCA), and Pfizer (PFE), which rose 3.2%, 2.4%, and 2.1%, respectively.

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