Health Care Sector Sees Mixed Trading Amid Strong Stocks

Strategic Insights -

As of Monday, Jan. 12, 2015, the Health Care sector was trading up 0.3% versus the S&P 500, which was down 0.8%. The sector's mixed performance was underscored by the strong performance of Foundation Medicine, Hologic, Allergan, Biogen Idec, and Actavis, which were up 103.1%, 4.9%, 1.7%, 1.8%, and 1.4%, respectively. However, the sector was also weighed down by declining stocks such as HCA Holdings, Vertex Pharmaceuticals, Shire, Cigna, and Express Scripts, which were down 2.5%, 2.6%, 1.8%, 1.5%, and 1.4%, respectively.

Key Takeaways:

  • The Health Care sector was trading up 0.3% as of Monday, Jan. 12, 2015, despite the sector's mixed performance.
  • Foundation Medicine, Hologic, Allergan, Biogen Idec, and Actavis were among the strongest performers in the sector, up 103.1%, 4.9%, 1.7%, 1.8%, and 1.4%, respectively.
  • NPS Pharmaceuticals, up $3.46 (8.3%) to $45.38, was one of the companies pushing the Health Care sector higher, with 53.4 million shares exchanged hands as compared to its average daily volume of 1.6 million shares.
  • AstraZeneca, up $1.44 (2.1%) to $70.88, and Sanofi, up $0.42 (0.9%) to $44.97, also showed strong performances.
  • TheStreet Quant Ratings identified a handful of stocks that can potentially truple in the next 12 months, including Foundation Medicine, AstraZeneca, and Sanofi.
  • The Health Care Select Sector SPDR (XLV) and ProShares Ultra Short Health Care (RXD) may be of interest to investors looking to buy or short the sector.

Statistics:

  • Dow Jones Industrial Average: 17,671, down 66 points (-0.4%)
  • NYSE advances/declines ratio: 975 issues advancing vs. 1,992 declining
  • Average daily volume of NPS Pharmaceuticals shares: 1.6 million
  • Shares of NPS Pharmaceuticals exchanged hands as of noon trading: 53.4 million
  • Market cap of AstraZeneca: $87.2 billion
  • Market cap of Sanofi: $119.9 billion
  • Year-to-date performance of AstraZeneca: down 1.3%
  • Year-to-date performance of Sanofi: down 2.3%

Sources:

  • TheStreet.com: "TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months."
  • TheStreet.com: "As of noon trading, NPS Pharmaceuticals is up $3.46 (8.3%) to $45.38 on heavy volume."
  • TheStreet.com: "AstraZeneca PLC is engaged in the discovery, development, and commercialization of medicines for cardiovascular and metabolic disease; oncology; respiratory, inflammation, and autoimmunity; and infection, neuroscience, and gastrointestinal disease areas worldwide."
  • TheStreet.com: "Sanofi discovers, develops, and distributes therapeutic solutions."