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IHI: Which of Its Holdings Was the Top Performer?

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IHI’s holdings year-to-date performances

In this article, we’ll analyze the YTD (year-to-date) performances of the top five holdings of the iShares US Medical Device ETF (IHI). YTD performances are a good measure of how a stock has performed from the beginning of the year to the present. Even after falling by 1%, IHI has given a YTD return of -3.5%. Though it has underperformed the broader-market SPDR S&P 500 ETF (SPY), which provided a YTD return of 0.4%, it has outperformed other biotechnology and healthcare ETFs.

 

The above graph shows the performance of IHI’s top five holdings and the SPDR S&P 500 ETF. Within IHI, Cantel Medical (CMN), Stryker (SYK), Bruker (BRKR), Teleflex (TFX), and Edwards Lifesciences (EW) have given the highest YTD returns, with 12.4%, 11.2%, 11.1%, 10.8%, and 6.8%, respectively.

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Valuations

Cantel Medical (CMN) has a market cap of ~$2.9 billion. With a book value of $10.25, the stock is trading at a PBV (price-to-book value) of 6.8x and a 2016 forward PE (price-to-earnings) multiple of 46.5x. The stock closed at $69.83 and was trading below the 20-day moving average price of $65.60. The stock has an RSI (relative strength index) of 73, indicating that the stock has moved into an overbought situation. It has a weight of 0.8% in IHI’s portfolio.

Stryker, Bruker, Teleflex, and Edwards Lifesciences are trading at PBVs of 4.5x, 6.1x, 3.0x, and 7.2x, respectively. Only Edwards Lifesciences is trading at a higher PBV than Cantel Medical.

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