|Bid||91.46 x 900|
|Ask||91.69 x 3100|
|Day's Range||91.18 - 91.77|
|52 Week Range||80.61 - 96.06|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.88|
|Expense Ratio (net)||0.13%|
Merck & Co. Inc. said Monday it was buying privately held biopharmaceutical company Tilos Therapeutics, in a deal that could be valued at up to $773 million. The deal includes an upfront payment and contingent milestone payments. Tilos targets therapeutics for the treatment of cancer, fibrosis and autoimmune diseases. "Tilos has developed a compelling portfolio of candidates that employ a novel approach to modulating the potent signaling molecule TGFβ by binding to latency-associated peptide, with potential applications across a range of disease indications," said Dean Li, senior vice president, discovery and translational medicine, Merck Research Laboratories. Merck's stock has gained 7.9% year to date, while the SPDR Health Care Select Sector ETF has tacked on 5.2% and the Dow Jones Industrial Average has advanced 11.4%.
UnitedHealth Group Inc. said Wednesday it has raised its quarterly dividend by 20%, to $1.08 a share from 90 cents a share. The diversified health care company's new dividend will be payable June 25 to shareholders of record on June 17. Based on Tuesday's stock closing price of $240.76, the new annual dividend rate implies a dividend yield of 1.79%, compared with the dividend yield for the SPDR Health Care Select Sector ETF of 1.58% and the implied yield for the S&P 500 of 2.06% and the Dow Jones Industrial Average of 2.14%, according to FactSet. UnitedHealth's stock, which was still inactive in premarket trading, has lost 1.5% over the past 12 months, while the Dow has gained 2.2%.
Eli Lilly & Co. said Wednesday Emgality injection was approved by the U.S. Food and Drug Administration for the treatment of episodic cluster headache in adults. Lilly said Emgality is the first and only treatment that reduces the frequency of attacks. "After training by a healthcare professional, patients can administer Emgality at home through subcutaneous injections at the onset of a cluster headache period, and then monthly until the end of a cluster period," the company said in a statement. Emgality was previously approved in September 2018 for the treatment of migraine in adults. Lilly's stock, which was still inactive in premarket trade, has gained 1.6% year to date, while the SPDR Health Care Select Sector ETF has advanced 2.8% and the S&P 500 has rallied 11.8%.
CVS Health (NYSE:CVS) stock is down 22.3% year-to-date, closing at $53.19 on Monday. To put this in perspective, this is around the same price CVS stock was trading at in early 2013.Source: Mike Mozart via FlickrInvestorPlace - Stock Market News, Stock Advice & Trading TipsThe broader health care sector hasn't done very well in 2019 either. The Health Care Select Sector SPDR Fund (NYSEARCA:XLV), which counts CVS stock as one of its largest components, is the worst performer among nine sector ETFs year-to-date.CVS is the largest pharmacy in the United States. Last November, CVS completed its acquisition of Aetna, America's third-largest health insurer.Click to EnlargeThe $70 billion deal still faces some challenges in court, but if it goes through, it would create a vertically integrated health care giant. CVS would be a pharmacy, a pharmacy benefit manager (CVS Caremark), a health insurer, and a primary care provider (through its MinuteClinics). This could potentially shake up America's health care system.CVS beat analyst forecasts when it reported first-quarter earnings on May 1, sending CVS stock up higher to the mid-50s, although it has lost ground since then. Is it time to buy CVS stock? Bulls would say "yes" emphatically. Although the health care sector is not doing so well this year, it is projected to grow faster in the years ahead. Also, CVS is a low-beta stock -- 1.09 at yesterday's close -- and it trades at low valuations, and the stock might benefit from the merger with Aetna. It also pays a nice 3.82% dividend. * 7 Stocks to Buy for Monster Growth Bears, on the other hand, would not buy CVS stock. They would cite political risks from both sides of the aisle, the opioid crisis, and competition from Amazon (NASDAQ:AMZN) entering the health care sector, both with its PillPack acquisition and its Haven disruptor venture. They also would warn investors about the company's high debt levels.Let's take a look at both sides of the story. CVS Stock ProsGrowing Sector: The health care sector is growing faster than the rest of the economy, and this could benefit CVS stock. According to projections from the Center for Medicare and Medicaid Services, U.S. spending on health care will grow at a 5.5% annual rate from 2018 to 2027. By 2027, the U.S. will be spending $6 trillion a year on health care, up from $3.65 trillion in 2018. Part of this is due to factors such as America's growing aged population (along with most of the developed world). Growth in the health care sector could be a tailwind for CVS stock. Low Beta: As a relatively low-beta stock, CVS is unlikely to be hit hard by cyclical economic downturns. People will always need medicine and household essentials sold at CVS. During a downturn, you might put off buying a new car or going to a casino; you aren't going to buy less toothpaste and toilet paper. If you think this bull market has gone on long enough and a downturn is around the corner, it might make sense to look at stocks like CVS. Valuation: "Across the board, CVS stock is trading at dirt-cheap, decade-low valuation levels," InvestorPlace contributor Luke Lango concluded in April. Lango looked at several valuation metrics. Many of his observations are still true. "The trailing sales multiple is around 0.3. That's a decade low, well below the five-year average sales multiple (0.6), and below the index average multiple (2.1). The price-to-cash-flow multiple is just above 6, which is also a decade low and well below the five year average and index average cash flow multiples. Same is true for price-to-book and forward price-to-earnings." CVS Stock ConsU.S. Politics: Washington's wrangling could also pose a problem for health care companies like CVS. This has already hit CVS stock. The Democrats are moving toward greater intervention in the economy, with an emphasis on the health care sector, which accounted for 17.9% of U.S. GDP in 2016. Several Democrats running for president in 2020 have endorsed "Medicare for All", which could eliminate private health insurance. CVS just bought a health insurance company, Aetna, for $70 billion. President Trump also wants lower drug prices, and some of his proposals could negatively impact pharmacy benefit managers like CVS. * 7 Bank Stocks to Leave in the Vault Amazon: Amazon has already disrupted multiple industries, and health care could be next.Last year, Amazon formed health care company Haven with JPMorgan Chase (NYSE:JPM) and Berkshire Hathaway (NYSE:BRK.B). This joint venture will be free from profit-making incentives and constraints; its goal is to improve health care while lowering costs. There's also the aforementioned PillPack, an online pharmacy startup. Opioid Liability: CVS stock could also suffer if the company is hit with more opioid lawsuits. I mentioned the opioid crisis last year in an article on Johnson and Johnson stock. Thousands of people in the U.S. have died as a result of overdosing on opioids such as hydrocodone and fentanyl. While the federal government is working to combat this opioid crisis, CVS faces opioid lawsuits from the Cherokee nation, City of New York, and the state of Florida. If more jurisdictions file lawsuits against CVS, the stock will be negatively impacted. The Verdict on CVS StockIn my view, the cons outweigh the pros and I would stay away from CVS stock for now. Yes, CVS stock is cheap, but sometimes stocks are cheap for a reason. Cheap stocks can sometimes be value traps, and InvestorPlace contributor Ian Bezek thinks CVS is a value trap right now. I'm inclined to agree. I think the Amazon threat is real. Some may argue that Amazon's success as a pharmacy is not guaranteed. Indeed, Amazon invested in Drugstore.com in 1999 only to see the site sold to Walgreens Boots Alliance (NASDAQ:WBA), which shut it down in 2016. However, Amazon was a much smaller company back then. Today it is an $800-billion behemoth. The technology research firm CB Insights recently detailed Amazon's ambitions in the health care sector. Can CVS out-innovate Amazon? I'm not so sure. I would hold off on buying CVS stock.As of writing, Lucas Hahn 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 Sell Impacted by the Mexican Tariffs * 6 Big Dividend Stocks to Buy as Yields Plunge * The 10 Biggest Announcements From Apple WWDC 2019 Compare Brokers The post Time to Buy Beat-Down CVS Health Stock? Here Are 3 Pros And 3 Cons appeared first on InvestorPlace.
As is the case with the other 11 months of the year, there are sector-level opportunities with exchange traded funds in June. Using the original nine sector SPDR ETFs (there are now 11) as the gauges, just two average positive returns in the month of June, according to CXO Advisory. In a month that historically rewards playing defensive, it's not surprising that the best-performing sector SPDR in June usually is the Utilities Select Sector SPDR (NYSE: XLU).
Here is a look at ETFs that currently offer attractive short selling opportunities. The ETFs included in this list are rated as sell candidates for two reasons. First, each of these funds is deemed to be in a downtrend based on the fact that its 50-day moving average is below its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively. Second, each of these ETFs is also trading above its 20-day moving average, thereby offering a near-term 'sell on the pop' opportunity given the longer-term downtrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.
Whether the markets are roaring or experiencing doldrums, health care exchange-traded funds (ETFs) have been a paragon of reliability, and could be the safe haven investors need to cure the trade war blues. For traders, this could bode well for the Direxion Daily Healthcare Bull 3X ETF (CURE). In particular, the pharmaceutical business is experiencing a profit squeeze as a result of lesser-than-expected revenue from the sale of generic drugs.
With equity market volatility rising and investors acting jittery due to the lingering US/China trade war, many market participants are favoring defensive sectors and the related exchange traded funds. The Health Care Select Sector SPDR ETF (XLV) , the largest exchange traded fund (ETF) dedicated to the sector, is up 2.52% this month while other, more aggressive sectors and broader equity benchmarks scuffle. “As the S&P 500 has tumbled 4% this month, the XLV health care sector ETF has held slightly positive.
Eli Lilly & Co. said its lower-priced Insulin Lispro Injection is now available for order in pharmacies, per vial or in a package of five KwikPens. The drug giant said Lispro Injection's list price is 50% lower than its identical branded Humalog U-100. Lispro Injection has a list price of $137.35 per vial and $265.20 for a package of five KwikPens. "Because most insurance plans provide affordable copays for chronic medicines that are much lower than list price, people should ask their pharmacist whether Insulin Lispro Injection or Humalog is the lower-cost option for them," Lilly said in a statement. The stock, which was still inactive in premarket trade, has edged up 0.7% year to date, while the SPDR Health Care Select Sector ETF has gained 3.1% and the S&P 500 has rallied 14.3%.
Shares of Mylan N.V. sank 2.7% in morning trade toward a 7 1/2-year low, after Fitch Ratings revised its outlook on the generic drug maker's credit rating to negative from stable, putting the rating in danger of a downgrade to "junk" status. Mylan's long-term issuer default rating at Fitch is BBB-, the lowest investment-grade rating. Fitch said the revised outlook reflects its expectation that gross leverage may remain elevated over the near term because of slower-than-expected revenue growth, cash generation and debt reduction. Fitch's rating and outlook is similar to S&P Global Ratings' BBB- rating with a negative outlook, while Moody's Investors Service has a Baa3 rating--one notch above "junk"--with a stable outlook. Generic drug maker stocks have been under pressure in recent weeks, and took another header on Monday after more than 40 state attorneys general filed suit against 20 makers of generic medications, alleging a conspiracy to artificially inflate prices and reduce competition. Shares of fellow generic drug maker Teva Pharmaceutical Industries Ltd. slid 6.1% in morning trade to a 1 1/2-year low. Year to date, Mylan's stock has tumbled 27.6% and Teva shares have plunged 26.2%, while the SPDR Health Care Select Sector ETF has gained 1.3% and the S&P 500 has tacked on 13.3%.
Shares of Becton Dickinson & Co. dropped 3.1% in morning trade Thursday, after the medical technology company topped fiscal second-quarter profit expectations, but slashed its full-year outlook, citing "recent regulatory and market pressures related to paclitaxel-coated devices." The net loss for the latest quarter narrowed to $18 million, or 7 cents a share, from $50 million, or 19 cents a share, in the same period a year ago. Adjusted EPS, which excludes non-recurring items, fell 2.3% to $2.59, but topped the FactSet consensus of $2.58. Revenue declined 0.6% to $4.195 billion, just shy of the FactSet consensus of $4.238 billion. For fiscal 2019, the company cut its adjusted EPS guidance range to $11.65 to $11.75 from $12.05 to $12.15. The company also lowered its revenue growth outlook to 8.0% to 9.0% from 8.5% to 9.5%, citing an estimated additional negative impact from currency moves. The stock has now slipped 0.1% year to date, while the SPDR Health Care Select Sector ETF has gained 2.3% and the S&P 500 has tacked on 13.8%.
The S&P 500 on Tuesday logged its steepest daily slide in about four months as investors reacted poorly to the prospect of escalating U.S.-China trade tensions.
S&P 500 earnings reported so far have come with an earnings beat that is second highest in five years. These sector ETFs should benefit from this trend.
Shares of Mallinckrodt PLC shot up 13% in premarket trade Tuesday, after the drug maker reported first-quarter earnings and sales that beat expectations, and raised its full-year outlook. The company swung to net income of $154.9 million, or $1.83 a share, from a loss of $18.0 million, or 21 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted EPS rose 20% to $1.94, above the FactSet consensus of $1.70. Net sales rose 4.7% to $790.6 million, above the FactSet consensus of $766.3 million. Specialty brands sales fell 0.2% to $547.3 million but topped the FactSet consensus of $539.8 million, and specialty generics sales grew 18% to $243.3 million to beat expectations of $228.3 million. For 2019, the company raised its adjusted EPS guidance range to $8.30 to $8.60 from $8.10 to $8.40. The stock, which closed at a one-year low on May 1, has tumbled 21% over the past three months through Monday, while the SPDR Health Care Select Sector ETF has edged up 1.0% and the S&P 500 has gained 8.4%.
Shares of UnitedHealth Group Inc. surged 3.1% in afternoon trade Monday, enough to pace the Dow Jones Industrial Average's gainers, as the health care sector was one of the just 2 of the S&P 500's 11 sectors that are gaining ground. The Dow was down 128 points, with 23 of 30 components losing ground, while the SPDR Health Care Select Sector ETF edged up 0.2% with 25 of 62 components gaining ground. Earlier Monday, UnitedHealth disclosed that Chief Executive David Wichmann spent $904,366.88 to buy 20,000 of the company's stock at an average price of $231.7865 as early as Friday. The stock was now trading around $239.12.
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.
Declining sales of blockbuster drug Copaxone dragged down first-quarter revenue at Teva Pharmaceuticals Industries Ltd.
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Many Americans struggle with high health care costs, and they want help from Washington. But that doesn’t mean they’re willing to give up private insurance. A recent Kaiser Family Foundation survey of people with employer-provided insurance finds that 68% say their plan is excellent or good. One-quarter say their coverage is average, with only 6% rating their plan as poor or failing. Overall, 72% say they’re “grateful” for their coverage.