Healthcare Sector Update: MedTech Trending Up
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The major market leadership thus far has been large-cap tech with frequent sector rotation. Healthcare is thought to be a defensive sector but you need to balance your portfolio in comparison to other sectors. The NASDAQ-100 (QQQ) is up over 19% YTD mainly led by tech giants like AAPL, GOOGL, and MSFT. Healthcare shares (XLV) rallied off March lows but are still down YTD. Almost the same trend emerged with the IBB in a tight range from March $122 lows off $138 January highs. The S&P 500 is near the top of its expected range 0f 4200 according to many strategists with risks to the downside mainly PE compression from less earnings growth and rising rates.
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Recently we have seen some positive momentum in MedTech with the IHI and yesterday supported by revenues from medical device blue chips Abbott ( ABT), Intuitive Surgical (ISRG), and Johnson/Johnson (JNJ). Earnings from major device companies and large-cap biopharma over the next 2 weeks will help us ascertain risks for the market.
Here is our sector and ETF model with performance over one year.
| Model | |||||||||||
| PORTFOLIO | |||||||||||
| 2020 | 2020 | 2020 | 2021 | 2022 | 2023 | 2023 | |||||
| Stock/ETF | Ticker | Price | Wgt | Price | Price | P | 1Y | Price | YTD | ||
| 10/25 | % | 12/31 | % Perf | 12/31/21 | 12/31/22 | %Perf | 4/19 | % Perf | Trend | ||
| iShares NAZ Bio | IBB* | 136 | 15 | 151.5 | 25.7 | 152.62 | 130.55 | 3.82 | 133.22 | -1.47 | – |
| iShares Russell 2k | IWM | 163 | 10 | 196.4 | 18.3 | 222.45 | 174.36 | -11.56 | 178.25 | 2.23 | d |
| Merck* | MRK | 80 | 10 | 81.77 | -10 | 76.64 | 110.81 | 33.03 | 114.13 | 2.87 | u |
| United Health | UNH | 330 | 15 | 350.7 | 27.19 | 502 | 530.27 | -9.58 | 486.2 | -8.3 | – |
| SPDR S&P Bio | XBI | 117 | 10 | 140.8 | 48 | 111.96 | 83 | -2.66 | 82.35 | -0.75 | – |
| Healthcare SPDR | XLV | 108 | 20 | 113.4 | 14.71 | 140.89 | 135.88 | -3.23 | 133.95 | -1.4 | – |
| T.Rowe Hlth Sci | PRHSX | n/a | 5 | 99.65 | n/a | 104 | 89 | -3.49 | 91.04 | 1.36 | – |
| iShares U.S MedT | IHI | 50 | 10 | 54.83 | 65.85 | 52.57 | -6.17 | 56.77 | 7.99 | u | |
| MedTech* | ABT | new | 5 | 123.5 | 127.46 | 109.83 | -6.41 | 112.29 | 2.28 | u | |
| Tracking Comp | |||||||||||
| ARK Genomic | ARKG | 93.26 | 61.24 | 28.23 | -25.95 | 30.85 | 9.28 | – | |||
| Direx3X Bull | LABU | 7.66 | -52.66 | 5.97 | -15.56 | d | |||||
| FIDO Biotech | FBIOX | 25.18 | 19.35 | 16.04 | 4.96 | 16.5 | -1.35 | – | |||
| FiIDO MEDtech | FSMEX | 76.15 | 83.18 | 61.58 | (2.960 | 67.13 | 9.01 | u | |||
| DOW | DIA | 310 | 363.32 | 331.34 | -2.9 | 338.98 | 2.31 | – | |||
| S&P 500 | SPY | 379 | 475 | 382.41 | -6.94 | 414.14 | 8.29 | – | |||
| NASDAQ-100 | QQQ | 315 | 397.85 | 266.33 | -7.96 | 318.72 | 19.69 | u | |||
| Top Biopharmas | |||||||||||
| Abbvie | ABBV | 161.64 | 3.11 | 161.21 | -0.25 | – | |||||
| Bristol Myers Sq | BMY | 71.58 | -8.56 | 69.86 | -2.9 | – | |||||
| Gilead Sci | GILD | 85.39 | 33.98 | 84.11 | -2.03 | u | |||||
| Eli Lilly | LLY | 362.94 | 24.73 | 370.47 | 1.27 | u | |||||
| Merck | MRK | 110.94 | 33.03 | 114.13 | 2.87 | u | |||||
| Pfizer | PFE | 51.24 | -19.81 | 40.24 | -21.17 | d | |||||
| Regeneron | REGN | 721.7 | 12.93 | 808.86 | 12.11 | u | |||||
| Vertex | VRTX | 288.78 | 16.26 | 328.45 | 13.74 | u | |||||
More By This Author:
April Is Busting Out For Healthcare And Biotech
Large Cap Biopharmaceuticals Q1 2023: In This Bullish Run Biotech Lags
Biotech And Life Science Trades: Q1 2023 Performance By The Numbers
Disclosure: Long ABT, ABBV, BMY, IBB, GILD, LLY< IHI, REGN, UNH, VRTX, XBI. Also funds FSMEX and PRHSX.
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