|Bid||102.91 x 1300|
|Ask||103.48 x 1400|
|Day's Range||102.43 - 103.90|
|52 Week Range||84.65 - 105.08|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||2.08%|
|Beta (5Y Monthly)||0.88|
|Expense Ratio (net)||0.13%|
Shares of Medtronic PLC fell 1.4% in premarket trading Tuesday, after the Dublin-based medical technology company reported a fiscal third-quarter profit that beat expectations but revenue that missed. Net income rose to $1.92 billion, or $1.42 a share, from $1.27 billion, or 94 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to $1.44, above the FactSet consensus of $1.38. Sales grew 2.3% to $7.72 billion, below the FactSet consensus of $7.81 billion, as the company's cardiac and vascular and minimally invasive therapies segments missed expectations, the restorative therapies sales were in line and the diabetes segment sales topped expectations. The company raised its full-year EPS guidance range to $5.63 to $5.65 from $5.57 to $5.63. The stock has gained 5.5% over the past three months through Friday, while the SPDR Health Care Select Sector ETF has tacked on 7.0% and the S&P 500 has advanced 8.3%.
Investors have shunned healthcare stocks and sector-related ETFs during a U.S. presidential election year, but things might turn out differently this time around. The spotlight is already shining over the healthcare sector as Democratic candidates argue among themselves over the finer details of a potential "medicare for All" while President Donald Trump pledged to “never let socialism destroy American healthcare” at his State of the Union address earlier this month, the Financial Times reports. Any major healthcare policy changes will unlikely go through a divided Congress, and more importantly, the sector will continue to find fundamental support over the long-term from increased drug innovation and an aging U.S. population.
It's not a stretch to say nearly everyone knows that 2020 is a presidential election. The Health Care Select Sector SPDR ETF (XLV) , the largest healthcare ETF by assets, is up an impressive 2.43% year-to-date and investors may want to consider giving the fund another glance despite this being an election year.
Shares of Teva Pharmaceutical Industries Ltd. were down 1% in premarket trading on Wednesday after the Israeli drugmaker reported earnings of $110 million, or 10 cents per share, in the fourth quarter of 2019, after a loss of $2.9 billion, or $2.85 per share, in the same quarter in 2018. Adjusted earnings per share were $683 million, or 62 cents per share, matching the FactSet consensus of 62 cents. Revenue rose 1% to $4.46 billion in the fourth quarter of 2019, up from $4.42 billion in the same period a year ago. The FactSet consensus was $4.42 billion for the quarter. Teva attributed the growth to Huntington's disease treatment Austedo and migraine drug Ajovy, saying sales of those products offset lower revenue from multiple sclerosis therapy Copaxone in North America. Sales in North America jumped 6% to $2.37 billion in the fourth quarter, beating the FactSet consensus of $2.14 billion. However, North America sales of Copaxone, Teva's longtime flagship brand, tumbled 26% to $254 million for the quarter, down from $356 million in the same quarter a year ago, as a result of generic competition. Teva issued guidance for 2020, saying it expects revenues of $16.6 billion to $17.0 billion and adjusted EPS of $2.30 to $2.55. Teva's stock is down 32% over the past year, compared to the Health Care Select Sector SPDR Fund , which has gained 16%.
Shares of AbbVie Inc. climbed 2% in premarket trading on Friday although the drugmaker beat earnings expectations for the quarter. The company reported earnings of $2.8 billion, or $1.88 per share, in the fourth quarter of 2019, compared with a loss of $1.8 billion, or $1.23 loss per share, in the same quarter a year ago. Adjusted earnings per share were $2.21 per share, against a FactSet consensus of $2.19. Revenue rose to $8.70 billion for the quarter, up from $8.30 billion in the same period a year ago. The FactSet consensus was $8.69 billion. International sales of Humira, its top-selling rheumatoid arthritis treatment, fell 27% to $948 million, while U.S. sales rose 9.8% to $3.9 billion. The company said that it expects its $63 billion acquisition of Allergan to close this quarter. AbbVie issued strong guidance for 2020 ahead of consensus, saying it expects EPS of $7.66 to $7.76 and adjusted EPS of $9.61 and $9.71. The full-year consensus is $9.45. AbbVie's stock has gained 10% over the past year, compared with the Health Care Select Sector SPDR Fund , which is up 14%.
Democratic presidential hopefuls Pete Buttigieg and Bernie Sanders remain in a tight race in Iowa’s presidential caucuses with 97% of precincts reporting, while the Democratic National Committee’s chairman called for a redo.
Shares of Bristol-Myers Squibb were up 2% in premarket trading on Thursday after the company beat earnings estimates for the fourth quarter of 2019. The company had a net loss of $1.1 billion, or 44 cents per share, in the fourth quarter of 2019, after earnings of $1.2 billion, or 71 cents per share, in the same quarter a year ago. Adjusted earnings per share were $1.22, compared with 94 cents in the fourth quarter of 2018. The FactSet consensus was 88 cents. The company attributed the loss to "costs and expenses resulting from purchase price accounting, contingent value right fair value adjustments and other acquisition and integration expenses." Revenue jumped 33% to $7.94 billion for the quarter, compared with $5.97 billion a year ago. The FactSet consensus was $7.12 billion. Sales of Opdivo, its blockbuster immuno-oncology drug, fell 2% to $1.76 billion in the quarter, against a FactSet consensus of $1.79 billion. Bristol said in 2020 it expects earnings per share of 75 cents to 95 cents, adjusted EPS of $6.00 to $6.20, and revenue of $40.5 billion to $42.5 billion. The FactSet consensus is $6.12. It also gave guidance for 2021, saying it anticipates adjusted EPS in the range of $7.15 and $7.45, against a FactSet consensus of $7.41. Bristol's stock has gained 28% over the past year, compared with the Health Care Select Sector SPDR Fund , which is up 14%.
Shares of Biogen Inc. rocketed 19% in trading on Wednesday after the Patent Trial and Appeal Board ruled in its favor on a patent challenge brought by Mylan Inc. for its blockbuster multiple sclerosis drug Tecfidera. Mylan's stock is up 2%. Tecfidera is Biogen's top-selling drug, bringing in $4.4 billion in revenue in 2019. The jump in shares on Wednesday "is because of how much of an overhang this news item has been," Mizuho Securities' Salim Syed wrote in a note. "It provides an entry point perhaps for any aducanumab bulls waiting on the sidelines for this event to pass." Aducanumab is Biogen's investigational Alzheimer's disease treatment. Biogen's stock has gained 15% over the past three months, while the Health Care Select Sector SPDR Fund , an exchange-traded fund, is up 7%.
Many analysts had predicted that President Donald Trump would highlight a push for an international pricing index in his State of the Union speech, but he didn’t make that move on Tuesday night.
Health care ranks as the most important issue for Democratic caucusgoers in Iowa on Monday, while climate change is No. 2, according to entrance polls.
President Trump’s third State of the Union address could be of great interest to investors, as reports suggest he may propose new efforts to lower prescription drug prices, address trade policy and propose new tax cuts.
Shares of Biogen Inc. were up 2% after the company beat earnings expectations for the fourth quarter. Biogen said net income jumped to $1.44 billion, or $8.08 per share, from $946.8 million, or $4.73 per share, for the fourth quarter of 2018. Adjusted earnings per share were $8.34, against a FactSet consensus of $8.02. Revenue climbed 4% to $3.67 billion, up from $3.52 billion a year ago, against a FactSet consensus of $3.53 billion. Sales of Tecfidera, its flagship multiple sclerosis drug, edged up to $1.16 billion for the quarter, compared with $1.11 billion for the same period a year ago. Biogen CEO Michel Vounatsos said in a news release that the company plans to submit a regulatory filing for its experimental Alzheimer's disease drug "as soon as possible." Biogen said that it expects revenue between $14.0 billion and $14.3 billion in 2020 and earnings per share between $29.50 and $31.50. The FactSet consensus is $13.92 billion for revenue and $32.98 for earnings per share. Biogen's stock has tumbled 14% over the last year, while the Health Care Select Sector SPDR Fund has gained 14% and the S&P 500 has rallied 22%.
With 2020 being an election year, it's not far-fetched to think healthcare ETFs, such as the Health Care Select Sector SPDR ETF (XLV) , will be pinched at some point by political pressures. The largest healthcare ETF by assets, XLV seeks investment results that correspond generally to the Health Care Select Sector Index. The index includes companies from the following industries: pharmaceuticals; health care equipment & supplies; health care providers & services; biotechnology; life sciences tools & services; and health care technology.
Practice Fusion Inc., an electronic health record provider acquired by Allscripts Healthcare Solutions Inc. in 2018, will pay $145 million to resolve criminal and civil allegations that it engaged in a kickback scheme encouraging physicians to prescribe opioids, the Justice Department said. Practice Fusion admitted that it solicited and received kickbacks from a maker of opioid products and other drugmakers in exchange for putting clinical decision support alerts in its health record software that led to more prescriptions for these products. Shares of Allscripts, which spent $100 million in cash to buy Practice Fusion, were down 0.17% in premarket trading on Tuesday and have dropped 25% over the last 52 weeks. The Health Care Sector Sector SPDR Fund , an exchange-traded fund, has climbed about 14% over the last year.
Wall Street slumped greatly to start the week. Is it a sign of the beginning of a correction? Bet on the top-ranked ETFs that are on sale.
Shares of Bausch Health Companies Inc. were up 0.3% in premarket trading on Tuesday after it announced the publication of late-stage trial data for an investigational eye therapy it is developing with Clearside Biomedical Inc. . Clearside's stock was up 9%. The experimental therapy, Xipere, is being tested as a treatment for macular edema associated with uveitis. The Phase 3 study, called the Peachtree Study, showed that about half of the patients taking the treatment had an improvement in visual acuity. Bausch's stock is up 17% over the last 52 weeks, while shares of Clearside have gained 161%. The Health Care Sector Sector SPDR Fund , an exchange-traded fund, has climbed about 14%.
Shares of NantHealth Inc. soared 56% in premarket trading on Tuesday after the company said it had developed an artificial intelligence software used to improve lung-cancer diagnoses. "With highly accurate tumor-region and lymphocyte detection, oncologists may better treat their patients," NantHealth CEO Dr. Patrick Soon-Shiong said in a news release. Earlier this month, NantHealth said it planned to sell its connected care business to Masimo Corp. for $47.2 million in cash. That deal is expected to close in the first quarter. NantHealth's stock is up 119% over the last 52 weeks, while the Health Care Sector Sector SPDR Fund , an exchange-traded fund, has gained 14%.
Virus fears affected stocks around the world as the China coronavirus continued to spread, with a fifth confirmed case in the U.S. China stocks fell hard.
Shares of AbbVie Inc. were up 2% in trading on Monday morning after the drugmaker said Allergan , which it is in the process of acquiring, plans to divest two therapies. Allergan's stock is up 1%. It is selling brazikumab, an experimental Crohn's disease and ulcerative colitis treatment, to AstraZeneca and pancreatic treatment Zenpep to Nestlé. The divestitures are required for AbbVie to move forward with the $63 billion Allergan acquisition, which is expected to close this quarter. AbbVie's stock is up 3% over the last 52 weeks, while Allergan's stock has gained 18% during the same time frame. The Health Care Select Sector SPDR Fund has climbed 15% over the last year.
Uber Technologies, Inc. (UBER) was muscling in on their territory. This reminds me of everyone buying stocks. The Russell 2000 rebalances, which makes the index more equally weighted compared to the S&P and NASDAQ.
With earnings surprise in the cards, the healthcare sector is expected to witness substantial earnings growth of 4.4% in the fourth quarter, suggesting some room for potential upside for healthcare ETFs.
In an election year, some market segments and sector-related ETFs may perform poorly while others stand out as investors react to policy momentum among the presidential candidates. According to Dow Jones Market Data going back to 1928, the healthcare sector returned an average 7.9% and the technology sector returned an average 5.0% during the election year, compared to the S&P 500's 9.1% return. The healthcare sector is especially under the spotlight this time around as Democratic candidates propose major changes to how Americans receive health insurance and President Donald Trump eyed drug prices.
Shares of Abbott Laboratories were up 1% after the company reported sales increases across each of its four businesses in the fourth quarter of 2019. Net earnings were $1.05 billion, or 59 cents per share, in the fourth quarter, up from $654 million, or 37 cents per share, in the same quarter a year ago. Abbott said that adjusted earnings per share were $0.95 per share, compared with the FactSet consensus of $0.95. Total sales were up 7.1% to $8.3 billion, compared with the FactSet consensus of $8.2 billion. Medical device sales increased 9.7%, nutrition sales rose 5.2%, pharmaceutical sales were up 7.8%, and laboratory diagnostics sales rose by 8.4%. Sales of the company's MitraClip device, which is used in minimally invasive cardiovascular procedures, jumped 27% to $191 million. Abbott said it expects adjusted EPS of $3.55 to $3.65 in 2020. The FactSet consensus is $3.61. Abbott's stock has gained 25% over the last year. The SPDR Health Care Select Sector exchange-traded fund is up 16%, while the Dow Jones Industrial Average has gained about 18%.