Healthcare Stocks Rally Huge Through Election Whipsaw

 

Over a two-week period healthcare and biotech stocks got buffeted by election uncertainty and settled on a gridlock scenario. The healthcare stock rally this week was huge lifting all ETFs in the sector. We went from a horrible week to one of the best weeks in months. But a big risk from COVID lies ahead as coronavirus cases soar daily to the 120k mark.

We expect healthcare stocks to remain at current levels with COVID related news in the forefront. Diagnostic testing and antiviral therapies are hot areas and stocks will be volatile. One of our recent picks Orasure Technologies (OSUR) was up 5.3% to $13.31 on Friday with a positive earnings report with Q3 Revenues of $48M a 33% increase over Q3 in 2018.

Our new picks from last Sunday did well: Abbott (ABT), Abbvie (ABBV) up 5.22% and Merck (MRK) up 4.7%. Astara Zeneca (AZN) at $55 could be the next mover on vaccines milestones and oncology portfolio.

Technology stocks have been leaders especially the QQQ and should remain outperformers as the work-at-home trend continues.

We have developed a model portfolio for biotech and healthcare using ETFs. We will update the performance and trends weekly and expect the rally to continue through year end. United Health (UNH) was up 11% over the past week on the assumption that major healthcare disruptions from DEMS would be constrained.

But we are at a critical pivot point to see if the pandemic continues to weaken the economy.

           
           
Ticker Price 10/25 Weight P 11/7 % Perf week  
           
IBB 136 25 137.74 5.46  
IWM 163 10 163.55 4.99  
MRK 80 10 80.36 4.77  
UNH 330 25 347 11.46  
XBI 117 5 119.87 6.34  
XLV 108 25 109.92 6.22  
           
         
1 2
View single page >> |

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.