uploads///Part

Healthcare and Biotech Stocks Accelerate Their Longer-Term Trends

By

Jul. 29 2015, Published 11:24 a.m. ET

Moving averages of IBB’s subgroup

As of July 17, 2015, 68.42% of the biotech stocks within the iShares Nasdaq Biotechnology (IBB) stocks are trading above their 100-day moving average, 69.74% are trading above their 50-day moving average, and 80.26% are trading above their 20-day moving average.

In the healthcare products subgroup, 66.77% of the stocks are trading above their 100-day moving average, 83.33% are trading above their 50-day moving average, and 83.33% are trading above their 20-day moving average. In the pharmaceutical subgroup, 75.81% of the stocks are trading above their 100-day moving average, 83.87% are trading above their 50-day moving average, and 79.03% are trading above their 20-day moving average.

Article continues below advertisement

The moving average trend indicates a strong upward movement of the biotech sector driven by mergers and acquisitions. A great share of firms within this healthcare space are trading above shorter-term averages, but the entire sector remains in a strong momentum pattern. The above chart indicates a week-over-week comparison of the percentage of stocks within subgroups of IBB on a 100-day moving average basis. In the graph, “current week” refers to the week ending July 17, 2015, while “previous week” refers to the week ending July 10, 2015.

IBB outperforms the broader market

Not only did the iShares Nasdaq Biotechnology ETF (IBB) outperform the broader index SPDR S&P ETF (SPY) significantly, with IBB returning 6.65% versus SPY’s 2.40% for the week ending July 17, but every subgroup in the IBB outperformed the broader index for the same period, indicating strong sector performance.

Within IBB, 127 stocks moved up, indicating the strong performance of the biotech sector. Stocks like Anacor Pharmaceuticals (ANAC), ImmunoGen (IMGN), Receptos (RCPT), and Celgene (CELG) returned 71.92%, 34.28%, 18.31%, and 13.19%, respectively, helping IBB to outperform the broader index.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.