Healthcare ETFs On Radar As Q1 Earnings Unfold

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The healthcare sector has been benefiting from COVID-19 vaccines or treatment with many more to come. The ultra-popular ETFs, Health Care Select Sector SPDR Fund (XLV - Free Report)Vanguard Health Care ETF (VHT - Free Report), iShares U.S. Healthcare ETF (IYH - Free Report), and Fidelity MSCI Health Care Index ETF (FHLC - Free Report), have gained around 8% so far this year.

Better-than-expected earnings results from Johnson & Johnson (JNJ - Free Report) and UnitedHealth Group (UNH - Free Report) have added to the strength. The world's biggest healthcare products’ maker continued its long streak of earnings beat and outpaced revenue estimates. However, the company tightened its full-year guidance. Meanwhile, UnitedHealth breezed past the Zacks Consensus Estimate on both earnings and revenues. The company also lifted its full-year earnings outlook.

Further price movement of these funds depend on earnings releases from some big names like Pfizer (PFE - Free Report), Merck (MRK - Free Report), Thermo Fisher Scientific (TMO - Free Report), AbbVie (ABBV - Free Report), and Gilead Sciences (GILD - Free Report) that dominate returns. These firms are lined up to report their earnings this week and the next. All these stocks collectively account for 19.3% share in XLV, 17.2% in IYH, 15.5% in VHT, and 15.5% 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

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Disclosure: contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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