Examinng XLV’s mid-cap stocks
The Health Care Select Sector SPDR ETF (XLV) gives very limited exposure to the mid-cap biotechnology and healthcare stocks. The mid-cap stocks of XLV rose 1.3% and underperformed XLV and the SPDR S&P 500 ETF (SPY). The two ETFs returned 2.0% and 1.6%, respectively, as of November 18, 2015. The mid-cap stocks constitute only 1.8% of the XLV’s portfolio. As of November 18, 2015, out of the 55 stocks in XLV’s portfolio, there were only seven mid-cap stocks. XLV’s mid-caps include stocks like Quest Diagnostics (DGX), Dentsply International (XRAY), and Tenet Healthcare (THC). The three stocks returned 1.6%, 0.8%, and 1.3%, respectively.
The graph above reflects the performance of XLV’s mid-cap stocks. Since November 2015, the mid-cap stocks of XLV returned 0.6% as compared to XLV’s 1.1% and SPY’s 0.45%. Like large-cap stocks, the mid-cap stocks also underperformed the XLV but managed to outperform SPY so far.
PerkinElmer gains 2%
PerkinElmer (PKI) rose 2% as of November 18, 2015. This is the third consecutive trading session where the stock rose. During this period, the trading volumes were also high, with ~828,000 shares being traded.
PerkinElmer presented at the Stifel 2015 Healthcare Conference on November 17, showing the company’s current position and its future growth and strategies for different markets.
The stock closed at $52.6 and was trading above the 20-, 50-, and 100-day moving averages. With an RSI (Relative Strength Index) of 58, the stock is neither overbought nor oversold. PKI has a trailing-12-month price-to-earnings ratio of 34.14x. The book value of the stock is at $18.36 per share. At its current price, the stock is trading at a price-to-book value ratio of 2.86x. PKI has a weight of 0.20% in XLV’s portfolio.