Markets

Zacks Market Edge Highlights: Health Care SPDR ETF, iShares NASDAQ Biotechnology ETF, Acadia, Aetna and Gilead

For Immediate Release

Chicago, IL - February 09, 2017 - Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/248540/healthcare-stocks-the-buying-opportunity-of-the-year )

Healthcare Stocks: The Buying Opportunity of the Year?

Welcome to Episode #69 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by Kevin Cook, Zacks Senior Strategist and Editor of Zacks TAZR portfolio service. TAZR is the service which combines technical analysis with the Zacks Rank.

Healthcare stocks have been on fire since the Great Recession. The sector, as a whole, has outperformed the major indexes in that time.

But it seems like the sector topped out in June and July of 2015. Since then, the stocks have pulled back.

In 2016, the largest healthcare ETF, the Health Care SPDR ETF (NYSEARCA: XLV - Free Report ), declined for the first time since 2008. Similarly, the popular iShares NASDAQ Biotechnology ETF (NASDAQ: IBB - Free Report ), peaked in July 2015, up over 400%, and has fallen since then. The IBB is down 9% over the past 2 years.

Kevin and Tracey discuss what's happening in the healthcare sector today that is rattling the stocks, including the possible repeal and replacement of Obamacare, more federal regulation of drug prices, and the possible de-regulation of the FDA which would, presumably, push drugs to the market faster.

These uncertainties are creating buying opportunities in some areas.

4 Healthcare Areas Investors Should Be Watching

1. The hospital stocks have gotten hit on worries about the repeal of Obamacare. The panic is that if people lose their health insurance, the burden would again fall on hospitals to provide medical services through their emergency rooms etc. Two of Kevin's favorites are HCA Holding (HCA) and Acadia (NASDAQ: ACHC - Free Report ).

2. The insurers are also in the firing line of uncertainty regarding Obamacare. But there could be an opportunity in this group. Tracey still likes Aetna (NYSE: AET - Free Report ) and UnitedHealth Group (UNH).

3. What about the generic drug makers? Will they be hurt by possible checks on prices? It's still tough going for Perrigo (PRGO), Mylan (MYL) and Teva (TEVA). What do Tracey and Kevin think of the drug companies?

4. With biotech stocks, you either love them or you hate them. But should you be investing in them? Kevin takes you through his reasoning on why he still believes in the sector and why some of the big caps like Gilead (NASDAQ: GILD - Free Report ) and Amgen are looking like an opportunity.

Kevin believes that growth still remains in the healthcare sector. The Baby Boomers, one of the largest generations, are finally retiring. At the same time, people are living longer. That means more demands, not less, on the health care sector.

What else should you know about the healthcare sector in 2017? Should you just be buying the indexes?

Find out the answers to this and more on this week's podcast.

Tracey Ryniec manages the Insider Trader and Value Investor portfolios at Zacks.com. She hosts 2 weekly podcasts: Zacks Market Edge Podcast and the Value Investor Podcast . You can also catch her on Twitter at @TraceyRyniec .

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .

Get the full Report on XLV - FREE

Get the full Report on IBB - FREE

Get the full Report on ACHC - FREE

Get the full Report on AET - FREE

Get the full Report on GILD - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/performance

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SPDR-HLTH CR (XLV): ETF Research Reports

ISHARES NDQ BIO (IBB): ETF Research Reports

Acadia Healthcare Company, Inc. (ACHC): Free Stock Analysis Report

Aetna Inc. (AET): Free Stock Analysis Report

Gilead Sciences, Inc. (GILD): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ACHC IBB GILD XLV

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More