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How Have IBB’s Large-Cap Stocks Performed?

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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.

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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.

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