XLV Stock Recent News

UBS pointed out that rapid earnings growth recorded by the big six tech giants over the past year is now ebbing. Hence, this could be the time to bet on non-cyclical sectors.

UnitedHealth Group (UNH) breezed past the Zacks Consensus Estimate on both earnings and revenues.

XLV tracks the 64 Health Care stocks in the S&P 500 Index. Its expense ratio is 0.10% and the ETF has over $40 billion in assets under management. With a 12% weighting in the S&P 500 Index, Health Care is already well-represented in most portfolios. Attractive fundamentals should support a buy rating, but that's not the case today. Except for Eli Lilly and a handful of others, XLV lacks the growth potential to support its excessive valuation, which rivals SPY on forward earnings and trailing cash flow.

If you're interested in broad exposure to the Healthcare - Broad segment of the equity market, look no further than the Health Care Select Sector SPDR ETF (XLV), a passively managed exchange traded fund launched on 12/16/1998.

In the ongoing bull market, tech stocks have mainly driven the rally. However, with the rally expanding over the last few months, indicating a significant enhancement in market breadth.

Jonathan Krinsky, BTIG chief market technician, joins 'Closing Bell' to discuss his call for tech exhaustion ahead.

Healthcare stocks started the year off very strongly as investors cheered the sector's advances. Among the sector's catalysts have been continued, strong enthusiasm for a new class of weight-loss drugs called GLP-1 and Nvidia's decision, disclosed earlier this month, to invest in a medical imaging company and a firm that uses artificial intelligence ( AI ) to speed up the drug discovery process.

Health Care Select Sector SPDR Fund is recommended as a buy due to its strong mix of holdings, low expense ratio, and noteworthy dividend yield. XLV has outperformed its peer health care ETFs in terms of one-year performance and has a relatively low correlation to the overall market. XLV's top holdings, including Eli Lilly, UnitedHealth Group, and Johnson & Johnson, have shown consistent growth and profitability.

The Q4 of 2023 earnings season has emerged as a surprising success story. However, the cautionary note is that these gains come after a substantial reduction in earnings forecasts, and the outlook for the future remains uncertain.

The fourth quarter earnings reporting cycle is ongoing. Though investors' top focus remains on bottom line during an earnings reason, top line probably tells you more about the inherent strength of a company.