XLV Stock Recent News

Demand for Health Care services is inelastic and expected to grow due to aging population and economic slowdown. XLV ETF provides cheap investment in healthcare companies across various sub-sectors like pharmaceuticals, healthcare equipment, and biotechnology. Healthcare sector offers potential for higher long-term returns, but faces risks like regulation, patent expirations, and pricing pressure.

Of the 16 Zacks sectors, nine are expected to post earnings growth in the second quarter, with the strongest gains in the Technology sector (15.8%).

The U.S. economy added 206,000 jobs in June 2024, slightly below a downwardly revised 218,000 in May and above forecasts of 190,000.

The US economy added 272, 000 jobs in May 2024, the maximum in five months, compared to a downwardly revised 165,000 in April, and well above forecasts of 185,000.

Per the legendary investor John Hussman -- famous for predicting the 2000 and 2008 crashes, the latest stock rally is ingrained in the extreme fear of missing out. This FOMO rally may fizzle if the consensus view starts changing and valuation gets too ripe.

The Health Care Select Sector SPDR ETF (XLV) was launched on 12/16/1998, and is a passively managed exchange traded fund designed to offer broad exposure to the Healthcare - Broad segment of the equity market.

In April, inflationary pressures showed signs of easing. However, a few sectors and stocks that may gain in the near term as the price gains remained steady in those business areas.

The healthcare sector is one that exhibits "inelastic demand" and has the unique advantage of being essential to peoples' lives. Healthcare's valuation has been stunted by risks such as the "patent cliff" in the next few years, but its valuation is now very attractive. XLV still carries risks, which are discussed in this article, but ultimately is a "buy" based on macro and fundamental factors.

The biotechnology sector is renowned for its potential to deliver groundbreaking medical treatments while offering investors the possibility of significant returns. However, investing in these companies requires a nuanced understanding of their pipelines, regulatory landscapes and market dynamics.

A trio of top 10 holdings from this S&P 500 healthcare sector ETF report this week (LLY, the largest holding, PFE and AMGN). Despite being loaded with quality businesses, this sector is not showing signs I look for to produce high long-term returns from here, and I think a full washout is needed first. I rate XLV a Hold because it is bent but not broken, but I am very underweight healthcare for now.