Healthcare ETFs In Focus Ahead Of Q4 Earnings

Healthcare has been gathering enough investors’ interest driven by its non-cyclical nature, which provides a defensive tilt to the portfolio in a turbulent market.

The Health Care Select Sector SPDR Fund (XLV - Free Report) has gained 3.4% in the year-to-date timeframe, while 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) are up more than 4% each. The strength is likely to continue with some big names like Pfizer (PFE - Free Report) , Merck (MRK - Free Report) , Amgen (AMGN - Free Report) , AbbVie (ABBV - Free Report) , and Gilead Sciences (GILDFree Report) lined up to report this week and in the next. All these stocks collectively account for 23.3% share in XLV, 21.7% in IYH, 21.3% in VHT and 20.3% 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, a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), when combined with a positive Earnings ESP increases our chances of predicting an earnings beat, while Zacks Rank #4 or 5 (Sell-rated) stocks are best avoided. 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 #4 and an Earnings ESP of 0.00%. The stock saw negative earnings estimate revision of a penny for the to-be-reported quarter over the past 30 days. It delivered an average positive earnings surprise of 6.35% for the past four quarters. It has a VGM Score of D. Pfizer is scheduled to report earnings on Jan 29, before the opening bell.

Merck is expected to report results on Feb 1 before market open. It has a Zacks Rank #3 and an Earnings ESP of 0.00%. The stock delivered a positive earnings surprise in the last four quarters, with the average beat being 3.96%. However, it has 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 D.

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Disclosure: Zacks.com 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 specific ...

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