X
<

How the S&P 500 Index's Major Sectors Performed in July

PART:
1 2 3 4 5 6 7 8 9
Part 5
How the S&P 500 Index's Major Sectors Performed in July PART 5 OF 9

What’s Next for the Healthcare Sector after a Weak July?

Healthcare sector

The Health Care Select Sector SPDR ETF (XLV), which tracks the performance of the healthcare sector, saw a weaker performance in July 2017. It rose marginally by 0.8% during the month. Major healthcare stocks such as Johnson & Johnson (JNJ), Pfizer (PFE), Merck (MRK), and Amgen (AMGN) returned 0.33%, -1.3%, -0.32%, and 1.3%, respectively, in July 2017.

What’s Next for the Healthcare Sector after a Weak July?

Interested in XLV? Don't miss the next report.

Receive e-mail alerts for new research on XLV

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Johnson & Johnson represents nearly 12.1% of the Health Care Select Sector SPDR ETF’s holdings. The stock showed a strong performance on June 9, 2017, after the European Commission approved its proposal to acquire Actelion, a Swiss biotech company. Similarly, some merger and acquisition activity in other healthcare companies is driving the movement of healthcare stocks.

The healthcare reform bill is seeing delays in Congress. After much effort by the Republican administration, the bill is not getting the required votes. This uncertainty is creating concern among investors. However, the earnings figures of major healthcare stocks are looking impressive. On July 18, 2017, JNJ reported its 2Q17 earnings. It posted EPS (or earnings per share) of $1.83, which beat analysts’ estimates of $1.80. The stock posted a one-year EPS growth rate of 8.1%.

In the next part of this series, we’ll analyze the performance of the materials sector in July 2017.

X

Please select a profession that best describes you: