|Bid||190.85 x 1000|
|Ask||192.86 x 800|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||16.04%|
|Beta (3Y Monthly)||0.88|
|Expense Ratio (net)||0.43%|
The fourth quarter brings strong gains for Wall Street buoyed by easing U.S.-China trade worries, stronger-than-expected corporate earnings and Fed's third rate cut.
The U.S. jobs report was better than expected in October despite the GM strike. These sectors continued the most in job gains, putting the spotlight on these ETFs.
While the healthcare ETFs like the iShares Nasdaq Biotechnology ETF (IBB B+) are pulling back slightly this morning, mainly due to Amgen declining today, despite beating its earnings estimates and raising its full-year guidance, the overall healthcare sector is a top performer for October.
The healthcare sector, which has been the second-worst performer among the 11 major S&P 500 sectors this year, took the center stage this month with some outperformance compared to other sectors.
Sen. Elizabeth Warren (D-MA) is still one of the leading contenders for the 2020 Democratic presidential nomination, but her odds have recently dipped in some prediction markets, providing a boost to the iShares U.S. Healthcare Providers ETF (IHF) in the process. IHF is a traditional index fund that targets U.S. equities in the healthcare providers sector. The fund is up about 3% over the past month, a period that includes an impressive earnings report from UnitedHealth (UNH) , IHF's largest holding.
Healthcare stocks and sector-related exchange traded funds found support from a strong start to the earnings season after UnitedHealth Group (NYSE: UNH) and Johnson & Johnson (NYSE: JNJ) provided a much ...
Down about 3% this year, the iShares U.S. Healthcare Providers ETF (IHF) is a laggard among healthcare ETFs and that's saying something because the sector is one of the worst performers in the S&P 500. IHF is a traditional index fund that targets U.S. equities in the healthcare providers sector. Many of the most visible Democratic contenders for that party’s 2020 presidential nomination are embracing Medicare For All.
The healthcare sector has been struggling this year and those woes are epitomized by managed care providers and ETFs, such as the iShares U.S. Healthcare Providers ETF (IHF) . IHF is a traditional index fund that targets U.S. equities in the healthcare providers sector. IHF has been dogged this year by speculation that Medicare For All could become a reality if Democrats win the White House in 2020.
The core inflation rate for August hits the highest level in a year while the overall annual consumer price inflation declines. These ETFs could be beneficiary of this trend.
The Health Care Select Sector SPDR ETF (XLV) , the largest ETF dedicated to the sector, is up just 6% this year, putting it well behind the S&P 500 and other sector funds, but after lagging the broader market for more than eight months, healthcare stocks could be on the mend. Deutsche Bank analyst George Hill said many healthcare stocks are “Range-bound given the overhang of the 2020 election [as] investors fear the bogeyman of healthcare reform will finally emerge from the Washington DC cellar,” reports Teresa Rivas for Barron's. Previously, investors embraced healthcare stocks for the sector’s growth and defensive characteristics, providing investors with yields and valuations that are less stretched than other yield-producing stocks like utilities.
Plenty of health care exchange traded funds can be dubbed disappointing this year. Rather, investors in IHF and the stocks held by the ETF are finding themselves at the wrong place at the wrong time. Regardless of one's feelings about Medicare for All and the candidates endorsing that idea, markets are saying it's not a good idea.
Boy oh boy, has CVS Health (NYSE:CVS) been under pressure. CVS stock has spent 2019 in the dumpster so far, down about 14.3% on the year now. That badly lags the 48-stock iShares U.S. Healthcare Providers ETF (NYSEARCA:IHF), which has climbed 9.9% year to date. CVS Health stock is the fund's third-largest holding.Source: Shutterstock About the only thing worse than CVS stock has been Walgreens Boots Alliance (NYSE:WBA), which is down an abysmal 19%. Surely with so many other stocks and the broader market outpacing CVS Health stock, there's no reason to own it. Right?Well, that may not actually be the case.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCVS stock has some merits worth discussing, even if some investors don't conclude that it's a buy. Let's take a deeper look at both the fundamentals and the technical setup on the chart. Valuing CVS StockCVS stock is fueled by incredible sales, thanks in part to its acquisition of Aetna. Analysts expect revenue of $252.6 billion for 2019, a near-30% jump from the prior year. * 7 Defense Stocks to Buy to Fortify Your Portfolio The sheer size of that sales figure is noteworthy. In 2020, forecasts call for sales growth of ~2% to $257 billion. For comparison, Amazon (NASDAQ:AMZN) is forecast to record about $275 billion in sales this year. Estimates call for CVS to come in just behind Apple (NASDAQ:AAPL) at $256.8 billion in revenue this year.As for the bottom line, analysts expect earnings of $6.83 per share this year. While that's down 3.5% from the prior year, consider the valuation. At current prices, CVS stock trades at just 8 times earnings.That's incredibly cheap for what is actually a high-quality retailer. Not that 2020 estimates for 4.5% earnings growth are robust by any means, but 8x earnings for decent growth shouldn't be ignored. Further, the stock pays out a dividend yield just north of 3.5%.Investors could question the balance sheet, which admittedly bloated quite a bit after it paid $69 billion to acquire Aetna. Long-term debt has ballooned to $86.3 billion in the latest quarter, up from $60.7 billion just six months ago and $22.1 billion at year-end 2017.For some investors, that will nix an investment right away. That said, CVS's balance sheet isn't exactly pushing it to the brink. Total assets of $219.7 billion easily top total liabilities of $159.7 billion. However, total current assets of $47.8 billion are outweighed by total current liabilities of $50.6 billion, and admittedly, I'd like to see the former outweigh the latter. Trading CVS Health StockTo be sure, the balance sheet could be more attractive. But after all, when a stock trades at sub-10x earnings, there's often a reason. With a decent dividend and solid growth though, some may look past those restraints and find CVS stock attractive. Click to EnlargeIf CVS Health stock can get its current ratio north of 1.0 and generate positive free-cash flow growth, it may quickly find its stock in demand. What else helps get a stock in demand? Bullish momentum, and CVS stock is working on it now.Less than a year ago, CVS stock hit $80. A few months later, investors were praying $50 would hold as support. It did and now shares are trying to push through $57.50 resistance. * 10 Stocks to Buy From This Superstar Fund This level has proven itself to be significant over the past 18 months or so. Reclaiming it would be a positive development for bulls and open the door to a run higher. Above $57.50 and a run to the 50-week moving average is possible.So far, the stock is doing a really good job of holding the 10-week moving average. If it can continue to do so, it will eventually be forced into a make-or-break situation: either the 10-week fails as support or CVS stock breaks out over resistance.The stock still has a lot of work to do, but the recent action has been positive so far. For now, see that it holds the 10-week level.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AMZN and AAPL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 5G Stocks to Connect Your Portfolio To * 7 Stocks to Sell This Summer Earnings Season * 6 Upcoming IPOs for July The post Is CVS Stock a Buy With a 3.5% Dividend and 20% Upside?Â appeared first on InvestorPlace.
We study the impact of Trump's dropping of the proposed drug rebate rule on some health ETFs with exposure to pharmacy benefit managers and healthcare insurers.
Healthcare providers sector-related exchange traded fund was among the best performers on Thursday, breaking above its long-term resistance, after the Trump administration withdrew plans to curb billions ...
Citigroup (NYSE:C) just slashed Apple's (NASDAQ:AAPL) iPhone sales in half as a result of the U.S./China trade war. It seems more and more companies are getting caught in the crossfire. Whether buying goods from China or trying to sell products to China, navigating this trade war is a real difficulty.Source: Shutterstock Meanwhile, investors of all stripes are trying to figure out how to best insulate their portfolios from what's quickly becoming a global economic contagion.Is it even possible to hide from this trade war in which no one wins? Probably not. InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, I've got three ideas for minimizing your exposure. * 7 Stocks to Buy for June Buy Service-Oriented StocksThe argument for buying service-oriented stocks, especially those focused on the domestic market, is that they have far less exposure to trade policy. Naturally, most people immediately think of smaller companies, but that doesn't have to be the case. Sectors that come to mind include healthcare, utilities, software, real estate, etc. For example, although Amazon's (NASDAQ:AMZN) ecommerce business would be affected by the trade war, its AWS segment, which generated $2.2 billion of operating income in the quarter ended March 31 from $7.7 billion in revenue, wouldn't face nearly the same tariff concerns. In Q1 2019, its North American operating segment generated about the same amount of operating income from almost five times as much revenue. Although Amazon's doing a lot more third-party selling these days, whether its Amazon or the third party that owns the product, the trade war isn't helping their businesses. So, Amazon's a good, if not great way to minimize the trade war headwinds. Another possibility is to buy healthcare businesses that have a strong services component like hospital operators, healthcare plan providers, retirement and assisted living facilities, etc. In mid-April, I suggested that those who had the stomach start buying UnitedHealth (NYSE:UNH) stock despite the calls for "Medicare for All" because whatever the future holds for the provider of healthcare benefits and services, its stock has got to be worth more than $220. UNH stock bottomed in mid-April and has rebounded by more than 10% in the six weeks since. With the trade war hanging over our heads, a stock like UNH wouldn't be half bad. Alternatively, if you don't want to go the stock selection route, a good option would be to buy iShares Healthcare Providers ETF (NYSEARCA:IHF), a collection of stocks targeting domestic healthcare services companies like UnitedHealth, which is the ETFs number one holding with a weighting of 22.94%. Boring but ConsistentWith an ongoing trade war possibly leading to a recession, the best stocks to buy in this situation might be the most boring. Stocks that deliver consistent dividends or distributions and aren't necessarily affected by what's happening on the trade front. Two sectors that meet these criteria are real estate and utilities. Real estate, especially if you're investing in multi-family residential, is an area that's not going to suffer nearly as much from a downturn because we all have to live somewhere. Utilities benefit from the same scenario; we all need to pay our bills if we want to keep the lights on and the home appliances and electronics running smoothly. That's why Elizabeth Warren popularized the 50/20/30 budgeting rule, which puts aside 50% of your after-tax income for bills that you absolutely must pay. Rather than pick the real estate or utilities stocks to own, it would be much easier to buy two inexpensive ETFs to meet your needs. I'd go with iShares Residential Real Estate ETF (NYSEARCA:REZ) for the real estate play. Approximately 49% of its net assets are invested in residential REITs with the remainder in REITs that own retirement homes, storage facilities and other specialized real estate assets. It charges 0.48% annually. As for utilities, I'd go with Vanguard Utilities ETF (NYSEARCA:VPU). It's inexpensive at 0.10% and only has 68 holdings with its top ten accounting for 53% of the ETFs $4.8 billion in total net assets. Park Your Money If you're freaked out by the consequences of a lingering trade war, you can always move your portfolio out of equities and into a certificate of deposit or high-yield savings account until the skirmish is settled. Or, you can buy into the MNA IQ Merger Arbitrage ETF (NYSEARCA:MNA), an expensive ETF at 0.78% annually that's worth every penny. I first suggested the ETF in September 2017. Utilizing a directional hedge fund strategy, it has very little correlation to either the equity or fixed income markets, making it the perfect fund to own when both types of securities are losing their value. It's not going to make you rich, but in my opinion, it will protect your downside better than most bond funds would. Alternatively, you could invest in one of the many special purpose acquisition companies (SPAC) currently listed, preferably one that's gone public in the last 3-6 months. That's because SPAC's are blind pools of money raised to use for an acquisition at some point in the 21 months after an IPO. The funds are placed in escrow and interest is paid until a target company is found to acquire. If a target's not found, the funds are returned to investors with interest. It's an excellent way to park your funds with minimal downside and potential upside should an acquisition come to pass before the 21-month deadline. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for June * 7 Stocks to Buy From One of America's Best Pension Funds * 4 Consumer Staples Stocks for Both Income and Growth Compare Brokers The post 3 Ways to Minimize Your Exposure to the U.S.-China Trade War appeared first on InvestorPlace.
As has been widely documented, healthcare stocks and the related exchange traded funds are struggling this year and the iShares U.S. Healthcare Providers ETF (IHF) has been one of the offenders. IHF is a traditional index fund that targets U.S. equities in the healthcare providers sector. IHF has been dogged this year by speculation that Medicare For All could become a reality if Democrats win the White House in 2020.
While equities roiled over the latest developments in the trade negotiations between the U.S. and China, the healthcare sector exchange traded funds were a stalwart bastion in the stormy markets. "The old saying people would say [is] "don't just stand there, do something." When volatility picks up, you do just the opposite — "don't just do something, stand there." But, while you're standing there, get a list of the stocks you like and the levels you like them at," Matt Maley, equity strategist at Miller Tabak, told CNBC. Tabak highlighted the relative stability in UnitedHealth (UNH), the country’s largest publicly traded health insurer, during the volatile market conditions.