|Bid||195.67 x 900|
|Ask||195.73 x 800|
|Day's Range||195.26 - 196.71|
|52 Week Range||169.96 - 204.83|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.92|
|Expense Ratio (net)||0.43%|
Investors are seeking to beat the fresh tariff woes by betting on defensive sectors like utilities, real estate, healthcare and consumer staples. We have highlighted one ETF each from these four zones.
Healthcare stocks have fallen somewhat out of favor, as tech and faster growing industries have lead the rally in equities this year. There is a prevailing notion that healthcare stocks are defensive, given their business models and the dividends they pay to their shareholders. However, there are standouts in the sector that are poised to deliver growth, spurred by new approvals and new markets.Source: Shutterstock For those looking for a diversified approach to investing in healthcare stocks, Health Care SPDR (NYSEARCA:XLV) and iShares Dow Jones US Healthcare (NYSEARCA:IYH) are good options that are relatively liquid. The two funds track each other very closely, though there is a slight difference between their yields. XLV yields 1.6%, while IYH has a slightly higher yield of 1.9%. * 7 Energy Stocks to Buy to Light Up Your Portfolio For investors looking to bet on individual stocks, Merck & Co (NYSE:MRK) and AbbVie I(NYSE:ABBV) look like particularly good options. Within the XLV fund, MRK stock makes up 6% of overall holdings and ABBV stock accounts for 3.5% of its assets.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMRK stock and ABBV stock are primed to bounce back after both dropped slightly recently. Their performance should help offset any potential weakness of the fund's other holdings, including Johnson & Johnson (NYSE:JNJ).JNJ stock is by far XLV's largest holding, comprising over 11% of its total assets. Though I have concerns about the legal risks facing JNJ stock, the benefit of owning the index is that its diversification reduces the risk posed by each stock. Healthcare Stocks to Buy: MRKMerck demonstrated its ability to execute on its global strategy in the first quarter, generating double-digit percentage sales and earnings per share growth, no small feat, considering that the market cap of MRK stock is over $200 billion. MRK's investments in research and development are clearly paying off, and the owners of MRK stock should be very positive about the company's 2019 outlook.The company's China business generated a large part of its growth, driven by high sales of its oncology drugs and vaccines there. Excluding the negative impact of currency fluctuations, its China sales soared 67% year-over-year. China is a huge market with significant demand, but it's not an easy nut to crack. Many multinational corporations spanning various industries have struggled to generate profits there. Merck's ability to drive sales in China bodes well for its future growth and for MRK stock.On the oncology front, the FDA's approval of MRK's Keytruda for a number of indications, including advanced renal cell carcinoma and melanoma with lymph nodes, was a big win for MRK stock. The EU also approved Keytruda in combination with chemotherapy. Sales of Keytruda were up 55% year-over-year in Q1.Expect further approvals of MRK's oncology drugs throughout the year to provide a boost to MRK stock. A number of the company's animal-health treatments could also be approved. Healthcare Stocks to Buy: ABBVABBV stock hasn't maintained as much upward momentum as I would have expected after it reported very solid Q1 results. This global pharmaceutical company focuses on four therapeutic areas: immunology, oncology, virology and neuroscience. ABBV is a healthcare stock that has a lot of potential, given the strength of the company's pipeline.ABBV's quarterly sales and earnings both beat expectations, leading ABBV to increase its full-year EPS guidance from $7.26 to $7.36. Most importantly, the company's pipeline advanced meaningfully. Notably, the FDAand the Japanese Ministry of Health, Labour and Welfare both approved the company's SKYRIZI treatment, which could improve the standard of care of psoriasis.Those were big wins in a therapeutic area with a great deal of long-term potential. ABBV has multiple other products making their way through the approval process, setting the stage for ABBV stock to benefit from multiple positive catalysts in the near future.In oncology, AbbVie announced a strategic partnership with Teneobio, a biotechnology company that's developing a new class of biologics for the treatment of cancer, autoimmunity and infectious diseases. The two companies have agreed to develop and commercialize a biologic calledTNB-383B for the potential treatment of multiple myeloma.ABBV' has several other ongoing collaborations that will expand its oncology research platform, enabling it to develop life-changing treatments andmeaningfully boost ABBV stock.As of this writing, Luce Emerson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Stocks to Buy for May * 7 Stocks Worth Buying When They're Down * 7 of the Best ETFs to Buy for a Slowing Economy Compare Brokers The post Two Healthcare Stocks in the XLV Fund Stand Out appeared first on InvestorPlace.
With negative earnings revisions, the healthcare sector is expected to witness earnings growth of 1.8% in the first quarter, suggesting smooth trading for healthcare ETFs.
UnitedHealth Group reported robust first-quarter 2019 results. The company breezed past the Zacks Consensus Estimate on both earnings and revenues and raised its full-year forecast.
Johnson & Johnson continued its long streak of earnings beat and also outpaced revenue estimates. Though it raised the guidance for full-year sales growth, it tightened the earnings per share forecast.
For example, the iShares US Healthcare ETF (IYH) , which tracks the Dow Jones U.S. Health Care Index, is higher by about 7% this year. The $2.34 billion IYH devotes about 53% of its combined weight to pharmaceuticals and medical equipment stocks. Consequently, investors may also turn to defensive sectors that are less economically sensitive, such as health care.
With lower negative earnings revisions, the healthcare sector is expected to witness earnings growth of 7.7% in the fourth quarter, suggesting continued outperformance for healthcare ETFs.
Johnson & Johnson expects its sales growth to slow down this year due to pricing pressures and generic-drug competition for its pharmaceutical division. This has put healthcare ETFs in focus.
Compared to other sectors, healthcare was sturdy in 2018 and while the sector looks close to being fairly valued, the group could offer more upside this year. The Health Care Select Sector SPDR ETF (XLV) , the largest healthcare ETF by assets, gained 6.30% last year. XLV allocates about two-thirds of its combined weight to pharmaceuticals and biotechnology stocks.
Even the best ETFs can cause serious pain for investors when buys are made in the middle of a bear market. Read The Big Picture column for market guidance.
While there have been losers in most corner of the space, several ETFs still managed to end the year in green and are likely to continue outperforming in 2019 too.
In a lackluster year for stocks, health care proved to be one of the best sectors, a big reason why iShares U.S. Healthcare is now among the best ETFs.
The U.S. equity rally is beginning to lose steam and investors should not expect markets to maintain their breakneck spurt of yesteryear. Nevertheless, traders may still find value in some battered sectors ...
As U.S. markets continue to wobble, investors who want to stay in the game can look to defensive sector-related ETFs for a more steady approach. “If the sell-off continues and it deepens, it’s going to ...
Even as the Democrats retook control of the House of Representatives and the Republicans maintained majority in the Senate, healthcare ETFs were also big winners following the 2018 Midterm Election results. ...
Count the iShares US Medical Devices ETF (NYSEArca: IHI) and the iShares US Healthcare ETF (NYSEArca: IYH) among the healthcare exchange traded funds that could be affected by the results of the upcoming ...
As we discussed earlier, Pfizer’s (PFE) product portfolio is classified into two segments—the Innovative Health segment and the Essential Health segment. In this part, we’ll discuss Pfizer’s market capitalization and shareholding pattern.
The Department of Justice issued a preliminary approval for CVS Pharmacy to acquire health care insurance company Aetna, possibly paving the way for transformative changes in the industry as cries for more affordable care emanating from consumers and regulators get louder. The Health Care Select Sector SPDR ETF (XLV) slid 0.42% as of 11:45 a.m. ET, Vanguard Health Care ETF (VHT) fell 0.54%, iShares US Medical Devices ETF (IHI) was down 1.21%, and iShares US Healthcare ETF (IYH) slid 0.55%. As part of the approval process, the DOJ set forth the condition that Aetna had to divest itself from its Medicare Part D drug plan, which it eventually sold to WellCare Health Plans for an undisclosed amount late last month.
Healthcare was the best-performing sector of the third quarter, jumping 14.1% - its highest quarterly gain since the first quarter of 2013.
AbbVie (ABBV) announced its fourth-quarter dividend yield of 4.09%. On September 7, AbbVie announced a dividend of $0.96 per share to its shareholders of record on October 15.
Thermo Fisher Scientific (TMO) announced on September 7, 2018, that the company offers end-to-end analytical solutions that comply with cannabis testing standards as defined by Health Canada.
As discussed earlier, Abiomed (ABMD) reported revenues of $180.0 million in Q1 2019, a 36% increase as compared to revenues of ~$132.5 million in the first quarter of 2018.
Johnson & Johnson (NYSE: JNJ), one of the world's largest healthcare companies, has underperformed the broader market in 2018. The company's stock is down 3.66% year to date (YTD), while the Standard and Poor's 500 index (S&P 500) is up roughly 7%. David Katz, chief investment officer at Matrix Asset Advisors, told Reuters, "We are much more upbeat about Johnson & Johnson today than we were six months ago.