The large-cap stocks of the iShares US Medical Devices (IHI) rose marginally with a return of 0.1%. The SPDR S&P 500 ETF (SPY) and IHI remained flat with no gains and no losses. As of April 14, 2016, IHI held 14 large-cap stocks in its portfolio. Among them, eight stocks rose while six stocks fell from its previous day’s close. IHI large-caps account for ~77% of IHI’s portfolio.
The above graph indicates the daily changes in IHI large-caps, IHI, and SPY. From the beginning of April to date, IHI large-caps have returned 5.5% and outperformed the SPDR S&P 500 ETF (SPY), which had a return of 1.2% for the same period.
Baxter launches mobile health app in India
In a press release, Baxter International (BAX) announced that it has launched a new mobile app (application) in India called Sisu Janani Seva. It’s also known as mHealth. The app enables staff to better monitor the health status of underprivileged women during and after pregnancy. It also lets them monitor the immunization of children ages two and under. Through the app’s video and audio features, staff can provide essential healthcare information and counseling to women on an ongoing basis, thereby reducing possible health risks to the mother and the baby.
Baxter rose 0.7% on April 14, 2016. It closed at $42.65 and was trading above its 20-day moving average. Year-to-date, Baxter has risen 11.8%. The stock’s RSI (relative strength index) is 67, indicating that the stock is slowly heading toward an overbought situation.
Baxter has a book value of $16.15 per share. With its current price, the stock is trading at a price-to-book value of ~2.6x. Baxter has a 2016 forward price-to-earnings multiple of ~28.2x. It’s trading at a premium compared to some of its peers such as Thermo Fischer Scientific (TMO), Becton, Dickinson and Company (BDX), and Medtronic (MDT). Their 2016 forward price-to-earnings are 18.2x, 18.7x, and 17.7x, respectively. Baxter has a weight of 4.4% in IHI’s portfolio.
In the final part of our series, we’ll look at Zimmer Biomet and its 100-day moving average.