Healthcare ETFs Looks Strong Ahead Of Q1 Earnings

The healthcare sector has been on a tear driven by potential vaccines and treatments for COVID-19, which has now infected more than 2.4 million people globally and claimed 166,000 lives.

The ultra-popular ETF, Health Care Select Sector SPDR Fund (XLV - Free Report)Vanguard Health Care ETF (VHT - Free Report)iShares U.S. Healthcare ETF (IYH - Free Reportand Fidelity MSCI Health Care Index ETF (FHLC - Free Reportwere up at nearly 21% each over a month. The price movement of the fund depends on earnings releases of some big names like Pfizer (PFE - Free Report), Merck (MRK - Free Report), Amgen (AMGN - Free Report), AbbVie (ABBV - Free Report), Gilead Sciences (GILD - Free Report) and Bristol-Myers Squibb (BMY - Free Report) that dominate returns.

These firms are lined up to report their earnings in the coming weeks. All these stocks collectively account for 22.1% share in XLV, 20.2% in IYH, 19.1% in VHT and 18.8% in FHLC. Let’s dig deeper into the earnings picture of these companies, which will drive the performance of the above-mentioned funds in the coming days:

According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Inside Our Surprise Prediction for These Stocks

Pfizer has a Zacks Rank #2 and an Earnings ESP of 0.00%. The stock saw positive earnings estimate revision of a penny for the to-be-reported quarter over the past 30 days. It delivered positive earnings surprise of 7.46%, on average, in the past four quarters and has a VGM Score of C. Pfizer is scheduled to report earnings on Apr 28, before the opening bell.

Merck is expected to report results on Apr 28 before market open. It has a Zacks Rank #2 and an Earnings ESP of 0.00%. The stock delivered a positive earnings surprise in the last four quarters, with the average beat being 12.70%. It witnessed negative earnings estimate revision of a penny over the past 30 days for the to-be-reported quarter. Merck has a VGM Score of B.

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