Update-2 Another Roller Coaster Week helped by AMZN earnings and jobs report.. Healthcare SPDR Sector (XLV) up 1.39% for week, (4.19%) YTD; IBB up 2.08% for week, (14.4%) YTD; XBI up 2.49% for week, (18.9%) YTD.
Large cap healthcare stock leaders over 52 weeks: UNH, ABBV, GSK, VRTX. Sector leaders for the week: energy, discretionary, financials, Russell 2000, healthcare. Medtech looks to future after Omicron with US Medical Devices (IHI) up 3.56% for the week but down 9% YTD. Watch ISRG and MDT, ABT up 3.48% for week.
Teetering off the bottom in biotech but more tradeable for smaller caps. Large cap biopharma provides value plus dividends in a volatile market. We will summarize performance next week.
- REGN beats helped by antibody cocktail $6.19B sales, stock flat for week at $623,EYELEA sales Q4 up 15% to $1.55B, DUPIXENT sales by Sanofi up 51% to $1.77B. Stock has good value (PE of 8) but guidance is cautious.
- Bristol Myers(BMY) meets EPS beats on revenue, guides up, Eliquis and Opdivo drive sales. Generics loom. Stock flat for week. PE 20.83.
- Gilead Sciences (GILD) miss on legal charges, increases dividend 2.8%. Q4 revenue $7.4B, Biktarvy sales up 22%,Stock down 7.2% for week.
Update-1 2/3…Top Pick: Abbvie beats stock up 1.88% to $141 handle. EPS $12.70 up 20.3%, REVS $56.197 up 22.7%.
Merck (MRK) earnings and revenues beat COVID antiviral sales soar to $952M, guides to $5-6B but stock is down over 3%.
Roche (RHHBY) down over 2% of EPS miss revenue beat but warned that COVID related Dx and Rx could decline.
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Healthcare Portfolio Performance January 2022
- January sell-off hits (normally defensive) healthcare stocks.
- Biotech stocks continue down but large cap biopharmas do well.
- Investors rotate into value and energy,
The worst month since 2009 ended on a positive note as Friday the 28th of January through today February 1 showed a tradeable bottom.. The current rally shows three days of gains particularly with the NASDAQ-100 (QQQ) off the bottom of $340 to the $365 level today.
Just about everything was down in January except commodity stocks, crude oil and energy (XLE) which rose another 5% last week. Even our core holding United Health(UNH) was down 5.89% for the month after running up 43.84% in 2021. 2021 UNH Revs were up 12% YoY. Update- UNH up 5.9% over past five days to $489. The SPDR select healthcare Funds (XLV) was a down 6.86%
Biotech ETFs were hit hard with the XBI down 16.55% for the month and the larger cap weighted IBB down 13.6% for January. Note that in our posts throughout 2021 we were bullish on large cap biopharma particularly ABBV BMY and VRTX. We were also bearish on small cap Biopharmaceuticals as investor sentiment shifted to “risk off” and more fundamental analysis of companies and financial strength. This trend is also evident in the weakness of the Russell 2000 (IWM) which correlates to small cap biotech strength. For traders the XBI rocks already up 10 pts from Friday’s low. to $95!
The US Medical Device (IHI) ETF was down 10% reflecting the impact of Omicron COVID headwinds and labor shortages inhibiting elective surgical procedures.Similarly the Fidelity Select Medical Technology Fund (FSMEX) was down over 14%.
MODEL Healthcare Portfolio as of 1/31/22
| 2020 | 2020 | 2020 | 2021 | 2022 | |||||
| Ticker | Price | Wgt | Price | Price | 1 year | Price | Month | ||
| 10/25 | % | 12/31 | % Perf | 12/31/21 | % Perf | 1/31/22 | %Perf | ||
| Month | |||||||||
| IBB | 136 | 25 | 151.5 | 25.7 | 152.62 | 0.75 | 131.86 | -13.6 | |
| IWM | 163 | 10 | 196.4 | 18.3 | 222.45 | 13.46 | 201.24 | -9.53 | |
| MRK | 80 | 5 | 81.77 | -10 | 76.64 | -1.81 | 81.48 | 6.32 | or PFE |
| UNH | 330 | 15 | 350.7 | 27.19 | 502 | 43.84 | 472.57 | -5.89 | |
| XBI | 117 | 5 | 140.8 | 48 | 111.96 | -20.5 | 93.43 | -16.55 | |
| XLV | 108 | 25 | 113.4 | 14.71 | 140.89 | 24.73 | 131.23 | -6.86 | |
| PRHSX | 99.65 | 104 | 5.29 | 91.19 | -12.38 | ytd | |||
| IHI | 50 | 15 | 54.83 | 65.85 | 21.4 | 59 | -10.4 | ||
| COMP | |||||||||
| ARKG | 93.26 | 61.24 | -33 | 49.7 | -18.84 | ||||
| FBIOX | 25.18 | 19.35 | -23 | 16.23 | -16.12 | ytd | |||
| FSMEX | 76.15 | 83.18 | 14.71 | 71.4 | -14.16 | ytd | |||
| DIA | 310 | 363.3 | 19.31 | 351 | -3.37 | ||||
| SPY | 379 | 475 | 27.7 | 449.91 | -5.27 | ||||
| QQQ | 315 | 397.85 | 28 | 363.05 | -8.75 |