XLV Rose as 52 of Its Holdings Posted Positive Returns



XLV surges ahead of 20-day moving average

The S&P 500 and the Dow Jones Industrial Average rose ~1.4% each on February 22, 2016, driven by the strength in oil prices. The Health Care Select Sector SPDR ETF (XLV) moved along with the broader market and replicated their performances. XLV rose 1.4% on February 22, 2016, as 52 of its holdings posted positive returns. Only four of XLV’s stocks ended in the red.

The above table reflects a performance overview of XLV and the SPDR S&P 500 ETF (SPY), the top and bottom performers, respectively, for February 22, 2016. XLV closed at $66.87 and was trading above the 20-day moving average price of $65.64. Approximately 7.5 million shares of XLV were traded. Year-to-date, XLV has a return of -7.2% and has so far underperformed SPY.

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Movers and shakers

Tenet Healthcare (THC) was the top performer with a return of 7% on February 22, 2016. Tenet announced its 4Q15 and fiscal 2015 results. Below are a few highlights of its earnings:

  • It reported adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $2.3 billion and an adjusted EPS (earnings per share) of $2.05 for fiscal 2015. For 4Q15, adjusted EBITDA stood at $613 million, and adjusted EPS was $0.35.
  • It reported a net loss of $1.41 per diluted share for fiscal 2015. It reported $0.98 per diluted share for 4Q15. The loss was attributed primarily to the $218-million increase in litigation reserves related to the Clinica de la Mama criminal investigation and civil litigations.
  • Tenet also provided an outlook for 2016 and expects its revenue to be in the range of $18.8–$19.2 billion and adjusted earnings per diluted share of $1.18–$2.25.

Tenet closed at $25.50 and was trading just above the 20-day moving average price of $25.30. Tenet has a weight of 0.1% in XLV’s portfolio.

Anthem (ANTM) rose 3.9% for the day and was trading above the 20-day moving average price of $126.90.

On the other hand, Perrigo (PRGO) fell 4% on the news of Goldman Sachs downgrading Perrigo. PRGO closed at $124.08 and was trading below the 20-day moving average. Perrigo has a weight of 0.75% in XLV’s portfolio.


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