|Bid||38.72 x 2200|
|Ask||38.89 x 1000|
|Day's Range||39.24 - 39.67|
|52 Week Range||34.51 - 49.97|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.46|
|Expense Ratio (net)||0.35%|
The healthcare sector, the second-largest sector by exposure in the S&P 500, is in the midst of a dismal run. After ranking as the best-performing sector in the U.S. last year, healthcare is the worst-performing group in the S&P 500 in 2019.Just look at the Health Care Select Sector SPDR (NYSEARCA:XLV), the largest of healthcare ETFs by assets. XLV is down 0.84% year-to-date while the S&P 500 is higher by nearly 16%. XLV's year-to-date loss does not paint a complete picture of healthcare stocks' weakness. Investors' distaste for the sector has recently been increasing as highlighted by an April loss of more than 7% for XLV.While the long-term outlook for the healthcare sector remains solid, healthcare ETFs and stocks face myriad headwinds, including some that are politically-charged. As has been widely noted, the idea of Medicare For All has significant traction among several Democrats running for that party's 2020 presidential nomination and that is plaguing insurance providers and some more focused healthcare ETFs.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMore recently, politicians from both parties continued assailing high pharmaceuticals prices, sending the S&P Pharmaceuticals Select Industry Index lower by more than 6% for the week ending April 18. * 10 High-Yielding Dividend Stocks That Won't Wilt In other words, healthcare ETFs face a lot of near-term headwinds, meaning it could be time to consider dumping these funds. SPDR S&P Pharmaceuticals ETF (XPH)Source: Shutterstock Expense ratio: 0.35% per year, or $35 on a $10,000 investment.The SPDR S&P Pharmaceuticals ETF (NYSEARCA:XPH) tracks the aforementioned S&P Pharmaceuticals Select Industry Index and even with the recent consternation over high drug prices, this healthcare ETF is maintaining a year-to-date gain of over 6%. That makes XPH one of the better-performing healthcare ETFs this year.The White House claims that it has affected favorable changes when it comes to drug prices, but with a presidential election year looming, the rhetoric on this issue is likely to increase, not abate, and that presents a potential headwind for a slew of healthcare ETFs, including XPH."Even if politicians truly wanted to lower drug prices, one complexity is that Medicare, which many candidates want to expand broadly, has no authority to negotiate thanks to a possibly ill-advised policy proposed by the Bush administration that has been in effect since 2006," according to CNBC.XPH and several other healthcare ETFs are front-and-center in the drug price debate. XPH's deteriorating technical health is another cause for concern with this healthcare ETF as the fund currently resides more than 10% below its 200-day moving average, a percentage that has recently been growing. Invesco S&P SmallCap Health Care ETF (PSCH)Source: Shutterstock Expense ratio: 0.29%The combination of small-cap stocks and the healthcare sector can be rewarding for investors when both of those elements are moving higher in unison. Small caps are doing their jobs this year, but healthcare is not, and that drag has recently been weighing on the Invesco S&P SmallCap Health Care ETF(NASDAQ:PSCH).PSCH, the small-cap counterpart to the aforementioned XLV, is a diversified healthcare ETF and its 69 holdings "are healthcare companies principally engaged in the business of providing healthcare-related products, facilities and services, including biotechnology, pharmaceuticals, medical technology and supplies," according to Invesco. * 7 Digital Ad Stocks That Deserve Your Attention Right Now In more sanguine environments for the healthcare sector, PSCH's diverse roster would be an advantage. For the time being, the opposite is true. PSCH's nearly 13% weight to pharmaceuticals stocks is a problem in its own right thanks to the drug price debate, but the real drag on this healthcare ETF is the 22.69% weight to the healthcare providers industry, meaning this healthcare ETF features significant exposure to the Medicare For All debate. First Trust Health Care AlphaDEX Fund (FXH)Source: Shutterstock Expense ratio: 0.63%Alternatively-weighted, or smart beta, funds have caught on with advisors and investors in recent years, but when it comes to the sector funds in this group, there are often two-fold reminders. When things are going well for that sector, smart beta sector funds can outperform their cap-weighted rivals. When that sector falls out of favor, there is little or no downside protection in alternatively-weighted sector funds.Meet the First Trust Health Care AlphaDEX Fund (NYSEARCA:FXH), a healthcare ETF that has recently been taken to task in significant fashion. This healthcare ETF uses a mix of growth and value traits to build its portfolio, a methodology that can lead to upside when the sector is performing well, but in the current environment, FXH is being hit on multiple fronts.A combined weight of 39.60% to biotechnology and pharmaceuticals stocks exposes FXH to the drug price debate. Second, this healthcare ETF has devotes 17.48% of its weight to healthcare providers, meaning Medicare For All is dinging this fund's performance as well. Put all that together and FXH is experiencing epic April showers with a month-to-date loss of 8.57%.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Yielding Dividend Stocks That Won't Wilt * 4 Energy Stocks Soaring as Trump Tightens on Iran * 7 Tech Stocks With Too Much Risk, Not Enough Upside Compare Brokers The post 3 Healthcare ETFs to Sell Amid Political Headwinds appeared first on InvestorPlace.
The stock market's rebound this year may leave investors wondering if there's any gas left in the tank. CLS Investments offers three 'resilient' ETF ideas.
Big pharmaceutical companies were on the hot seat at Capitol Hill today with CVS Health, Cigna, Prime Therapeutics, Humana, and UnitedHealthcare's OptumRx testifying before the Senate Finance Committee on the rising cost of prescription drugs. Among the topics discussed included rebates paid by drug makers contributing to the high costs and the drug industry's pursuit of profits--all to shift the blame from the pharmaceutical companies to the drug makers. U.S. President Donald Trump has already lambasted the pharmaceutical industry for the rising costs associated with prescription drugs.
Democrats and Republicans on the House Energy and Commerce Committee signaled Wednesday that they had reached deals on some bills that target soaring drug prices.
Pharmaceutical sector-related ETFs stood out Thursday after Horizon Pharma (HZNP) revealed positive test results for its treatment of thyroid eye disease, or TED. Among the better performing non-leveraged ETFs of Thursday, the First Trust Nasdaq Pharmaceuticals ETF (FTXH) rose 1.8%, Invesco Dynamic Pharmaceuticals ETF (PJP) gained 1.5% and SPDR Pharmaceuticals ETF (XPH) increased 2.3%. Horizon Pharma shares surged 32.5% Thursday following the release of positive test results in its Phase 3 trial of its thyroid eye disease drug, teprotumumab, TheStreet reports.
Under a new proposal by the Centers for Medicare & Medicaid Services, the Medicare program would cover FDA-approved CAR-T therapies. CAR-T, or chimeric anitgen receptor T-cell, therapies use genetically-engineered immune cells called T cells to more specifically target cancer cells. CMS said the proposal, announced Friday, would require Medicare to cover the cancer treatment when it is offered in a CMS-approved registry or clinical study, as long as data is collected from the patients for at least two years after treatment. CMS said it plans to use the information to decide what treatments are most beneficial to patients and which CAR-T therapies to fund in the future. "Today's proposed coverage decision would improve access to this therapy while deepening CMS's understanding of how patients in Medicare respond to it, so the agency can ensure that it is paying for CAR T-cell therapy for cases in which the benefits outweigh the risks," said CMS Administrator Seema Varma in a statement. There are currently only two approved CAR-T therapies in the U.S., and both are very expensive. Novartis's Kymriah has a list price of $475,000, while and Gilead Sciences Inc.'s Yescarta is priced at $373,000. There is no national Medicare policy for covering the expensive new cancer treatment, so it is currently up to local Medicare administrative contractors to decide whether to pay for it. Shares of Novartis have gained 4.3% in the year to date, while shares of Gilead have gained 6.3%. The SPDR S&P Pharmaceuticals ETF has gained 13.5% and the S&P 500 has gained 10.4%.
Shares of Biogen Inc. gained 3% in premarket trade Tuesday after the company reported fourth-quarter earnings that beat profit and revenue expectations. Profit for the latest quarter rose to $944.9 million, or $4.73 a share, after a loss of $166.3 million, or a loss of $1.40, in the year-ago quarter. Adjusted EPS was $6.99 a share, beating the FactSet consensus of $6.73 a share. Revenue was $3.526 billion, beating the FactSet consensus of $3.391 billion, and up from $3.307 billion a year ago. The company's most profitable multiple sclerosis drug, Tecfidera, brought in $1.11 billion compared to $1.076 billion a year ago. Spinraza, its spinal muscular atrophy drug, brought in $470 million, up from $363 in the year-ago quarter. The company expects 2019 adjusted EPS between $28 and $29. The FactSet consensus for 2019 is $28.15. Shares of Biogen have gained 9.7% in the year to date, while the SPDR S&P Pharmaceuticals ETF has gained 7.4%. The S&P 500 has gained 5.5%.
Biotech stocks, which have fallen 20% from last year's high based on the iShares Nasdaq Biotechnology ETF (IBB), could face more declines in the year ahead. A combination of negative headwinds including weak sales growth, earnings revisions and other forces are likely to plague the once-red hot sector.
What to Expect from Bristol-Myers Squibb's Acquisition of Celgene (Continued from Prior Part) ## Strategic benefits The acquisition of Celgene (CELG) by Bristol-Myers Squibb (BMY) brings together both the company’s leading franchises. The acquisition also brings together both the companies’ robust clinical pipelines. Bristol-Myers Squibb and Celgene together bring the leading oncology franchises together. Bristol-Myers Squibb’s leading oncology drugs include Opdivo and Yervoy, while Celgene’s leading oncology drugs include Revlimid and Pomalyst. The acquisition also brings together the leading immunology and inflammation products on one platform. The leading immunology and inflammation products include Bristol-Myers Squibb’s Orencia and Celgene’s Otezla. The combined company is expected to have nine products with annual sales figures of above $1.0 billion. Bristol-Myers Squibb (BMY) and Celgene hold a robust pipeline with significant potential in different disease areas such as oncology, cardiovascular diseases, inflammation, and immunology. The combined company presently has six products that could be launched in the near term. The products in clinical trials that could be approved in the near term include two investigational immunology and inflammation products, TYK2 and ozanimod, and four hematology products: viz. luspatercept, liso-cell, bb2121, and fedratinib. The approval of the above drug candidates that are presently in trials could significantly strengthen the product portfolio of Bristol-Myers Squibb. The drug approvals could also significantly boost the revenue growth of the combined company. The revenue growth of Bristol-Myers Squibb could boost the SPDR S&P Pharmaceuticals ETF (XPH). Bristol-Myers Squibb makes up ~4.36% of XPH’s total portfolio holding. ## Financial benefits The combined company of Bristol-Myers Squibb and Celgene (CELG) is expected to have strong returns. The acquisition transaction’s internal rate of return is expected to be much higher compared to Bristol-Myers Squib’s and Celgene’s cost of capital. After the closure of the transaction, Bristol-Myers Squibb anticipates that the combined company will generate over $45.0 billion in free cash flow during the first three years. Browse this series on Market Realist: * Part 1 - Bristol-Myers Squibb to Acquire Celgene * Part 2 - How Celgene Is Positioned Now * Part 3 - How Bristol-Myers Squibb Stands Now
While millennials will soon overtake them in sheer number, boomers require extensive medical care. Theoretically, this trend should boost Big Pharma stocks. If pharmaceutical stocks represent viability, they’re doing a bad job of it.
After Democrats obtained a narrow majority in the House of Representatives in the midterm elections, both House Democrats and President Trump will likely be looking to make at least some deals. To retain their majority, House Democrats will have to convince moderate voters in the swing districts that Democrats narrowly won that they are moderate and can be productive. For his part, President Trump will likely have to convince at least some moderate voters, i.e., centrist suburban women and independents that he can make deals that will make the country and their lives better.
The Health Care Select Sector SPDR ETF ( XLV), the largest exchange-traded fund (ETF) tracking health care stocks, is up nearly 6% year to date, highlighting strength in the S&P 500's second largest sector weight.
The 2018 midterm elections are just days away and the outcomes of those contests could affect an array of sectors and industries. Currently, most political prognosticators are forecasting the Democrats gaining control of the House while the Republicans are expected to maintain control of the Senate. Healthcare, one of this year's stronger sectors, is a group historically impacted by events on Capitol Hill.
Analysts expect Allergan’s (AGN) revenues to decrease in the third quarter to $3.88 million, which compares to $4.03 million in Q3 2017. Its EPS is estimated at $4.03 compared to $4.15 in Q3 2017.
Investors should focus on some strategies as to which sector should they take positions or which should be avoided if bipartisan government forms.
With a contentious midterms election season coming up, many anticipate a split government that could potentially impact the way ETF investors ride the markets ahead. Some expectations point to Democrats winning back the House of Representatives and the Republicans maintaining a narrow hold on the Senate - Republicans currently dominate both chambers. "If the consensus expectation of a divided government turns out to be correct, the most likely political consequences would be an increase in investigations and uncertainty surrounding fiscal deadlines," David Kostin, Goldman's chief U.S. equity strategist, said in a note.