Global Markets - Health Care Update July 16, 2018

Cerundolo Investment Research    

Global Update  

Volume 1, Issue 9
July 16, 2018


In this report, we are reviewing the Global Health Care sector using the (XLV) for the U.S. coverage and the iShares (IXJ) for a global list of companies. This is a follow-up to our May 16th Global Healthcare Report where we highlight a deterioration in the overall score for the sector as represented by both ETF’s. Since then, there has been a significant improvement in the sector scores which is primarily due to the strong absolute and relative advance in recent weeks. The score for the XLV has gone from -4.4 to now +5.65 and the IXJ has gone from -1.6 to 4.25.

A notable improvement has been in the Health Care Equipment group globally. We continue to like the biotechs but find the S&P Biotech ETF (XBI) at the upper end of its regression trend channel, an area for a pause/pullback to take hold. On weakness, consider the stocks we have included in a separate Biotech Ideas PDF. These stocks all score well and have favorable intermediate to long-term trends in place. Attached also find PDF’s for U.S. Health Care longs and Non-U.S. companies. On page 1 of the U.S. long ideas, we include the sector matrix which shows the model scores for each sub-industry and major global regions.

Items of Interest: