No large-caps lost for the week
The iShares Nasdaq Biotechnology ETF (IBB) has approximately 14 large-capitalization stocks in its portfolio with a market capitalization of more than $10 billion as of February 19, 2016.
The large-cap stocks gave a collective average return of 7.4% for the week and outperformed the SPDR S&P 500 ETF (SPY), which gave a return of ~2.9% for the same period.
The above graph reflects the performances of IBB’s large-cap stocks, IBB, and SPY for the week ended February 19, 2016.
Biomarin and Incyte outperformed
BioMarin Pharmaceutical (BMRN) and Incyte (INCY) outperformed the other large stocks within IBB, with returns of 15.5% and 11%, respectively. BioMarin closed at $77.7 and was trading above its 20-day moving average price of $74. Year-to-date (or YTD), it has returned -25.8%.
For the week ended February 19, 2016, its average trading volumes stood at ~2.2 million shares per day. Given its book value of $14.22 per share and its current price, the stock is trading at a price-to-book value (or PBV) of 5.46x. BioMarin has a weight of ~2.2% in IBB’s portfolio.
Incyte (INCY) closed at $72.7 and was trading just above its 20-day moving average price of $72. The average trading volume of Incyte for the week stood at ~2.8 million shares per day. YTD, Incyte has fallen by ~33%. The stock is trading at a forward price-to-earnings (or PE) ratio of 48.5x. It has a book value of $0.92 and with its current price, the stock is trading at a PBV of 79.3x.
15 analysts have given INCY “buy” recommendations, two analysts have given it “hold” recommendations, and no analysts have given it “sell” recommendations. INCY has a weight of 2.4% in IBB’s portfolio.
Gilead Sciences (GILD), on the other hand, remained flat during the week, with a rise of 0.1%. The stock closed the at $87.44 on February 19 and was trading just below its 20-day moving average. Gilead has a weight of ~8.7% in IBB’s portfolio.