Health Care Sector Rises Amidst Market Volatility

Strategic Insights -

The health care sector is trading higher amidst market volatility, led by gains in shares of Opko Health, Centene, and Dr Reddy Laboratories. The Dow Jones Industrial Average is trading down 10 points (-0.1%) to 17,206 as of Monday, Oct. 19, 2015, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,332 issues advancing vs. 1,655 declining with 165 unchanged.

Key Takeaways:

  • The health care sector is up 0.5% versus the S&P 500, which is down 0.1%.
  • Top gainers within the sector include Opko Health (OPK), up 6.9%, Centene (CNC), up 4.2%, and Dr Reddy Laboratories (RDY), up 3.2%.
  • Cigna (CI) is one of the companies pushing the Health Care sector higher today, up $1.50 (1.1%) to $142.24 on light volume.
  • Anthem (ANTM) is up $1.83 (1.2%) to $148.88 on light volume, with investors reacting to the company's solid stock price performance and impressive record of earnings per share growth.
  • Aetna (AET) is up $1.30 (1.1%) to $114.29 on light volume, with investors reacting to the company's solid stock price performance, impressive record of earnings per share growth, and increase in net income.
  • TheStreet Ratings rates Cigna, Anthem, and Aetna as buys, citing their solid stock price performance, growth in earnings per share, increase in net income, revenue growth, and largely solid financial position with reasonable debt levels by most measures.
  • Shares of Cigna, Aetna, and Anthem are up 36.8%, 17.0%, and 27.2% year-to-date, respectively.
  • The health care sector has seen significant gains in recent months, driven by a combination of factors including a stronger economy and improving investor sentiment.

Statistics:

  • The NYSE advances/declines ratio sits at 1,332 issues advancing vs. 1,655 declining with 165 unchanged.
  • The health care sector is up 0.5% versus the S&P 500, which is down 0.1%.
  • Top gainers within the sector include Opko Health (OPK), up 6.9%, Centene (CNC), up 4.2%, and Dr Reddy Laboratories (RDY), up 3.2%.
  • Cigna (CI) is up $1.50 (1.1%) to $142.24 on light volume.
  • Anthem (ANTM) is up $1.83 (1.2%) to $148.88 on light volume.
  • Aetna (AET) is up $1.30 (1.1%) to $114.29 on light volume.

Sources:

  • TheStreet Wire
  • TheStreet Ratings
  • Cigna Corporation
  • Anthem, Inc.
  • Aetna Inc.
  • Health Care Select Sector SPDR (XLV)
  • ProShares Ultra Short Health Care (RXD)