Biotechnology Leadership with Strong Growth and Earnings
- IBB is 28.94% YTD and 4.74% week to date.; XBI is up 27.94% YTD and 4.31% WTD. But off highs for year.
- ARKG genomics is up 6.73% WTD and 77% YTD but down on Friday as RSI weakens (Genomics too frothy?).
- XLV healthcare is up 3.2% WTD and 19.43% YTD. Tools (TMO) and Providers (UNH) show gains as well.
If you have been reading Raygent.com you’ll see the gradual uptick in the XLV beginning with the strength in large cap biotechnology stocks in June then gradually moving up 7.8% over the past month with strength in other other sub-sectors like providers United Health (UNH) and lately tools and diagnostics Thermo Fisher (TMO). But a word of caution -we need to understand the recent weakness in genomics stocks like ILMN and GH.
Large Cap Biopharmaceuticals -Your Core Positions for a Healthcare Portfolio
Large cap biopharmaceutical stocks had a great week no surprise to those following the sector because of stable growth, fantastic earnings reports and defensive nature when compared to technology stocks. And look at the Forward PEs in most cases less than 20. Here are some of this past week’s earnings reports:
- Abbvie (ABBV) beat Q3 guidance with EPS $3.82 and Revenue of $17.B, driven by $9.165B Immunology products like Skyrizi, with Neuroscience products up 19.4% to $3.389B. Our top pick in the sector is up 29% YTD.
- Gilead Sciences (GILD) posted strongest sales growth in a decade with a 16 % to $8.2B primarily an increase in HIV products sales for comparison to Q3 YoY, with an EP of $2.55. Look for growth next year in Oncology and inflammation.
- Eli Lilly and CO. (LLY) beat again on sales of obesity, diabetes and weight loss products (GLP-1) with full earnings for the year at $35-36 sh and Revenues of $91-$92B.Mounjaro sales were $10.7B and Zepbound generated $5.35B.
- Merck (MRK) Q3 Sales were $18.1B led by Keytruda with EPS of $2.04; big stores oncology pipeline including adjuvant treatment for resected Melanoma with Moderna.
- Regeneron REGN) up up 15.5% WTD and Vertex (VRTX) up 6.7% WTD, so contributed to the enthusiasm in the sector.
LONG: ABBV, BIIB,GILD, LLY, MRK,PFE, REGN., VRTX.
| COMPANY | TIcker | P | Mkt Cap | % YTD | RSI | P 10/18 | % WTD | P 10/30 | WTD | ||
| $B | |||||||||||
| Abbvie | ABBV | 276.47 | 521 | 29 | 73 | 285.42 | 3.24 | 294 | 3.24 | ||
| Amgen | AMGN | 414.87 | 2224 | 42.4 | 72 | 432.43 | 4.25 | 466 | 6.09 | ||
| Gilead Sciences | GILD | 151.17 | 211.6 | 23 | 74.3 | 162.1 | 3.32 | 170.7 | 9.38 | ||
| Johnson and J | JNJ | 261.44 | 658 | 32 | 60.3 | 255.56 | -2.25 | 273.2 | 3.56 | ||
| Eli Lilly | LLY | 1179 | 1110 | 31.9 | 77.9 | 1257 | 6.59 | 1417 | 11.3 | ||
| Merck | MRK | 145.6 | 359 | 42 | 57 | 145.95 | 0.24 | 149.5 | 2.93 | ||
| Pfizer | PFE | 28.28 | 161 | 22.57 | 66.5 | 29.58 | 4.6 | 30.52 | 1.63 | ||
| Vertex | VRTX | 510 | 129 | 23.3 | 67.6 | 499.74 | -1.77 | 558.9 | 6.67 | ||
| ARK GEnomic Rev | ARKG | 77.4 | 40.7 | 46.7 | -8.97 | 51.4 | 6.73 | ||||
| iShares Biotech | IBB | 28.9 | 62.8 | 202 | -2.18 | 217.6 | 4.75 | ||||
| State ST SPDR | XBI | 27.8 | 54 | 144.32 | -6.15 | 156 | 4.31 | ||||
