Healthcare Sector Update: Life In The Slow Lane While We Wait For BIOTECH Bounce

By Rod Raynovitch of Raygent.com
Monday, October 14, 2024 1:40 PM EDT

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  • Technology stocks continue to outperform with fits of Momentum from generative AI theme.
  • Healthcare sector lags despite moderate growth. Note bad news from CVS and Humana.
  • Momentum plays exist with specific stocks where innovation becomes apparent. e.g.CorMedix.

The market hit new highs last week led by technology and communication stocks as bull market enters 3rd Year.  Defensive stocks such as Healthcare (XLV) up 12.84% YTD, lagged while the Financials (XLF) up over 2%, up 21.84% YTD beat the S&P over the past week with strong earnings from banks. This week we will get a good feel for the healthcare sector from companies reporting such as Johnson and Johnson (JNJ) and United Health (UNH). The XLV is weighted heavily with five stocks LLY, UNH, JNJ, ABBV and MRK. Over the past year we have focused on several large cap stocks with dividends: ABBV, LLY, REGN and VRTX. The top weighted MedTECH stocks in the XLV are: TMO, ABT, DHR and ISRG. You can get good diversification in the Tools and Device sector with 2 FUNDS the FSMEX up 8.88% YTD and PRHSX up 14.25 %YTD, as you can see performance of our top funds below.

Chars healthcare (XLV compared to technology (XLK)

(Click on image to enlarge)


Recent Trades:

  • We added shares of Pfizer (PFE) under $30 protected somewhat  by a yield of 5.76%. as activist investor Starboard came inasa disruptor but the legal fracas has not boosted the stock. Future product sales improvement is expected from the acquisition of Seagen.
  • We also bought shares of Illumina (ILMN) that has picked up momentum over the past two weeks from a number of upgrades with expectation of a strong  product refresh cycle. CEO and bad GRAIL deal is gone.

The IBB and XBI recovered from recent lows and the XBI is up 10% YTD which lags our best FUND picks. The IBB also trails up only 7% YTD but improving.

(Click on image to enlarge)


STOCKS to Watch based on monthly performance from our SMID Life Science focus list:

  1. CorMed (CRMD) up 46% MTD and 169% YTD.
  2. Illumina (ILMN) up 16% MTD and 7.45% YTD.
  3. PacificBioscience (PACB up 17.86% MTD and -80% YTD.
  4. Natera (NTA) up 5% MTD, up107%YTD.
  5. Denali Therapeutics up 3.4% MTD, up 30.5% YTD.
  6. Adaptive Biotechnologies up 12.5% MTD, up 0.82% YTD.
  7. Catalyst Pharma (CPRX) up 3.8% MTD, up 20% YTD.
  8. Avidity Sciences (RNA)  up 15% MTD, 3.8% YTD.
  9. Crenetics (CRNX) up 4.7% TD, 49%YTD.

SMID CAP Trading List

                        10/13/24 %YTD %MTD            
                                         
                                         
COMPANY Ticker                               ST      
            P       P % P % % MCAP RSI Trend      
    P 1/20/23 Initial 2/4/23   12/24/23   YTD %   4/8/24 % 10/13/24 YTD MTD $B          
Adaptive BiioTech ADPT     4.11   5       2.6 -46.94 4.94 0.82 12.53 0.728 52.59 d      
Acumen Therap ABOS     5.29   3.57   -33.89   3.17 -17.45 2.35 -38.8 -4.86 0.141 44.3 –      
Avidity Sciences RNA new 7/1/24             25   46.6 415 14.99 5.46 55 –      
Catalyst Pharma CPRX     16.1   16.58   -10.86   14.89 11.42 20.2 20.17 3.8 2.4 53.8 –      
Caribou Biosci CRBU     6.29   6.17   -0.175   3.71 -35.25 1.9 -66.8 -6.88 0.169 48.47 –      
CorMedix CRMD         3.9       5.31 41.22 10.12 169 46.45 0.584 83.4 u      
Crenetics CRNX                 42.12 18.38 53.14 49.35 4.7 4.8 54.7 –      
CRSPR Therap CRSP 49.61 -25 55.27   63.67   56.63   53.91 -13.88 46.85 -25.16 3.1 3.99 50.81 u      
Cryoport CYRX 21.75 -42.34 25.24   16.09   -7.26   16.38 5.75 6.98 -54.94 -10.4 0.35 36.2 d      
Cytokinetics CYTK         31       65.34 -21.74 54.98 -34.27 2.06 6.46 51.64 –      
Denali DNLI     22           19.21 -9 28 30.48 3.4 4 51.93 –      
Exelixis EXEL     22.25           23.75 -1.21 26.23 9.34 1.5 7.48 52 –      
Evolent Health EVH 30.83 13.74 31.96   32.08   14.25   27.65 -16.29 27.06 -18.07 -10.25 3.15 44.59 u      
Geron GERN 3.19 9.24 3.22   2.29   -5.37   3.79 79.62 4.33 105.21 -1.37 2.6 47.1 –      
Humacyte HUMA new* 8/1/24 8.25               5.73 101.76 0.7 717 51.4 –      
Ilumina ILMN new* 10/4/24 143               145.54 7.45 16.59 23.2 67.8 u      
Intelllia NTLA                 25.5   18.58 -39 -8.02 1.89 39.54 –      
Immatics IMTX     9.3   9.9   13.66   10 -4.94 9.34 -11.03 20.1 0.96 26.65 d      
Natera NTRA         60       91.66 46.33 130 107.63 5.03 16 57 –      
Pacific Biosci PACB 11.29 55.68 11.58   8.59   5   1.47 -85 1.98 -79.9 17.86 0.539 61.9 u      
Novavax NVAX                 3.67 – 12.53 161 1.95 2 47.5 –      
Quidel-Ortho QDEL new 9/16/24 44               41 -44.3 -8.47 2.76 37.75 d      
Recursion Pharm RXRX         10.75       8.12 -17.65 6.62 -32.86 2.64 1.93 51.35 –      
Rezolute RZLT new 7/8/24 4.25               4.7 373.3 -8.56 0.263 47.21 –      
Roivant ROIV         11.4       11.03 -1.78 11.9 5.97 -3.88 8.8 5.1 u      
Supernus SUPN 40.3 12.3 41.61   29.23   -18.05   30.07 3.9 33 14 (6.18 1.82 58.22 u      
Tempest AI TEM new 7/10/24 52               48.82 21,29 5.01 7.53 47.39 –      
Twist Biosci TWST     18   3.76   34.03   31.54 -14.53 44.47 20.65 0.25 2.61 51.31 –      
10x Genomics TXG     47.84   56.58   55.27   27.59 -50.79 16.26 -70.94 -26.43 1.96 32.25 d      
                                         
Vericel VCEL     31   34.75   31.93   46.05 29.32 41.89 17.07 -4.6 2.04 43.35 –      
Veracyte VCYT 24.89 39.43 26.67   28.27   19.13   19.31 -29.81 34.02 23.66 12.2 2.61 57.2 u      
                                         
SPDR Biotech XBI 86.99 14.75 90.39   87.62   5.57   83.49 -6.51 98.68 10.52 -0.22   51.91 –      
iShares BIO IBB         133.77   -1.89   132.51 -2.48 145.59 7.17 –   53 u      
HealthcareSPDR XLV         135.02   –   143.22 5.02 153.89 12.84 -0.9   52.53 –      
iShares MedTEch IHI         53.65   57.3   6.17 55.79 58.61 8.6 -0.91   51.97 –      
                                         
ArkGenomics ARKG     35.28   32.81   16.22   23.18 -29.35 24.79 -24.44 -2.13   52.96 –      
                                         
T.RowePrice PRHSX         86.84   -3.32   92.49 5.22 100.4 14.22 -0.32            
FidoSelBiotech FBIOX         1763           21.42 20.13 1.04            
FIdoMedTech FSMEX         61.77       64.23   67.46 8.88 –            
JANUS Life Sci JNGLX                     80.72 \16.77 -0.28            
                                         
                      –                  
                                         
                                         
                                         
            12/24/23           8/12/24 %YTD MTD            
                                         
iShares CoreS&P IJR         108.34   14.48   107.62 -0.58 109.6 1.32 -1.54            
iShares Russell IWM         201.48   15.55   204.45 1.86 205.86 2.55 -3.53            
                                         
NASDAQ-100 QQQ         408.38   53.36   440.47 7.56 453.19 10.7 -8.42            
Fido MED Tech FSMEX         61.77           63.36 2.26 0.19            
                                         
T.RowePrice PRHSX         86.84   -3.32   92.49 5.22 97.33 10.73 -1.1            
iShares MED Dev IHI         53.65   2.05   57.3 6.17 55.79 3.37 -1.19          

More By This Author:

Biotech Stocks Poised For Another Big Move In Q4
Biotech Stocks : Are You A Trader Or A Longer Term Investor?
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