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XLV’s Top Ten Large-Caps in Mid-October: Allergan Sheds the Most

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Oct. 21 2015, Published 12:37 p.m. ET

XLV’s underperforming top ten large-caps

The top ten large-cap stocks of the Health Care Select Sector SPDR ETF (XLV) underperformed XLV and the SPDR S&P 500 ETF (SPY) on October 20, 2015, returning an average of -1.75% while XLV returned -1.55% and SPY returned -0.15%.

All ten large-cap stocks ended in the red, losing in the range of 0.35%–3.65%. The stocks include companies like Johnson & Johnson (JNJ), Pfizer (PFE), Bristol-Myers Squibb (BMY), which gave returns of -0.35%, -1.45%, and -1.85%, respectively.

The above graph shows the performance of  XLV’s top ten large-cap stocks compared with SPY since October 12, 2015. On most of these days, XLV’s top ten large-cap stocks outperformed the SPY. However, in absolute returns, both ETFs have returned 0.85% since October 12, 2015.

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Allergan sheds 3.6%

The global pharmaceutical company Allergan (AGN) saw a fall of 3.6% on profit booking on October 20. But the company witnessed high trading volumes of ~4.7 million shares compared to the five-day average trading volume of ~3.42 million shares per day. Its stock closed at $263.42 on October 20 and was trading below 20-day, 50-day, and 100-day moving averages. Its 14-day RSI (Relative Strength Index) was at 46, which indicates that its stock is neither overbought nor oversold. At its current price, Allergan is trading at PB (price-to-book) value of 1.74x.

On October 19, Allergan announced that it “has successfully completed the acquisition of AqueSys, Inc. a clinical-stage medical device company focused on developing ocular implants that reduce intraocular pressure (IOP) associated with glaucoma.”

The company also presented new data for Viberzi (eluxadoline), an orally active compound for the treatment of irritable bowel syndrome, at the American College of Gastroenterology 2015 Annual Scientific Meeting. The presentation featured data from Viberzi’s phase III clinical trials for the treatment of irritable bowel syndrome with diarrhea. Viberzi was approved by the US FDA (Food and Drug Administration) on May 27, 2015.

Allergan has a weight of 4.65% in the Health Care Select Sector SPDR ETF (XLV).

Continue to the next part of this series for a closer analysis of XLV’s bottom ten stocks as of October 20, 2015.

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