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XLV’s Mid Caps Underperform SPY

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Apr. 7 2016, Updated 8:08 a.m. ET

XLV mid caps

The mid-cap stocks of the Health Care Select Sector SPDR ETF (XLV) were down by 2.7% and underperformed the SPDR S&P 500 ETF (SPY), which fell by 1% on April 5, 2016. XLV, which provides limited exposure to mid caps, only has six mid-cap stocks in its portfolio. Mid caps account for ~1.5% of XLV’s portfolio. All of XLV’s mid-cap stocks fell. Endo International (ENDP) was the biggest loser, and it went down by 5.3%, followed by PerkinElmer (PKI) and Patterson Companies (PDCO), which fell by 3.1% and 2.9%, respectively.

The above graph reflects the daily changes since April 1, 2016, of XLV’s mid caps, the SPDR S&P 500 ETF, and XLV.

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PerkinElmer fell 3.1%

PerkinElmer went down by 3.1% to close at $48.58 and was trading just below the 20-day moving average. Also, the Bank of America Merrill Lynch downgraded PerkinElmer from “buy” to “neutral” though the reasons were not known. Analysts estimate the median target for the stock at $52. Nine analysts have recommended a “buy,” ten analysts recommended a “hold,” while two analysts have recommended a “sell” on this stock.

Year-to-date, PerkinElmer is down by 9.3%. PerkinElmer witnessed a surge in trading volume with ~848,000 shares being traded as compared to the five-day average trading volume of 634,000 shares per day. The relative strength index (or RSI) of the stock is 50, indicating that the stock is neither overbought nor oversold. The stock has a book value of $18.84 per share and with its current price, the stock is trading at a price-to-book value (or PBV) of ~2.6x and trading at a 2016 forward price-to-earnings (or PE) of ~18.0x. PerkinElmer has a weight of 0.2% in XLV’s portfolio.

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