Top ten mid-cap stocks performed well
The top ten mid-cap stocks within the iShares Medical Devices ETF (IHI) by market cap outperformed the SPDR S&P 500 ETF (SPY) and the IHI itself with an average return of 0.22%. In comparison, SPY returned 0.09% and IHI returned 0.15% on October 12, 2015. The top ten mid-caps include stocks like Waters (WAT), Resmed (RMD), and Idexx Laboratories (IDXX), which returned -0.27%, 0.46%, and 1.6%, respectively. The combined weight of the top ten mid-cap stocks stood at 15.3% of the IHI’s portfolio.
The above graph reflects the performance of IHI’s top ten mid-cap stocks in comparison to IHI and SPY on October 12.
Varian falls by 1.5%
Varian Medical Systems (VAR) fell by 1.5% and closed at $76.82 on October 12. The stock fell on profit booking, breaking its three-day upward trend. As per the press release, “Varian Medical Systems has received CE Mark for its latest ProBeam proton therapy system. The CE Mark allows Varian to begin installation of the newest version of its ProBeam system in the European Union.” This news didn’t seem to excite investors.
Varian Medical Systems was trading above its 20-day moving average, but below its 50-day and 100-day moving averages. VAR’s 14-day RSI (relative strength index) stood at 48, indicating that the stock is neither overbought nor oversold. With its current price, VAR’s price-to-book value (or PVB) was at 4.4x and its trailing-12-month price to equity was at 18.2x. VAR has a weight of 1.9% in IHI’s portfolio.