{"id":6386,"date":"2016-10-16T20:31:40","date_gmt":"2016-10-16T20:31:40","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=6386"},"modified":"2016-10-16T20:31:40","modified_gmt":"2016-10-16T20:31:40","slug":"healthcare-sector-revisions-interesting-relative-to-sector-performance","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=6386","title":{"rendered":"HealthCare Sector Revisions: Interesting Relative to Sector Performance"},"content":{"rendered":"<p>Here is an interesting trend in HealthCare sector earnings growth revisions:<\/p>\n<ul>\n<li><em><strong>Q3 &#8217;17:<\/strong><\/em> +12.3% on 10\/14 vs +12.0% as of October 1<\/li>\n<li><em><strong>Q2 &#8217;17:<\/strong><\/em> +8.4% as of 10\/14 vs +8.3% as of October 1<\/li>\n<li><em><strong>Q1 &#8217;17:<\/strong><\/em> +8.0% as of 10\/14 vs +7.9% as of October 1<\/li>\n<li><em><strong>Q4 &#8217;16:<\/strong><\/em> +8.2% as of 10\/14 vs +8.3% as of October 1<\/li>\n<li><em><strong>Q3 &#8217;16:<\/strong><\/em> +5.4% as of 10\/14 vs +5.6% as of October<\/li>\n<\/ul>\n<p>Source: Thomson Reuters &#8220;This Week in Earnings&#8221; 10\/14\/16<\/p>\n<p>The small upward revisions don&#8217;t seem like much today, but remember, at this point for forward quarters, we typically see downward and lower revisions.<\/p>\n<p>The first thought that crossed me mind seeing this trend was that &#8221; Analyst&#8217;s aren&#8217;t worried about election ramifications&#8221;, i.e. California&#8217;s Prop 61 or Hillary Clinton&#8217;s comments about price controls.<\/p>\n<p>However, things can change.<\/p>\n<p>The biggest HealthCare position for clients is Pfizer (PFE) with much smaller positions in Merck (MRK) and Johnson &amp; Johnson (JNJ) and IBB (Biotech ETF) and IHE (Healthcare ETF).<\/p>\n<p>Johnson &amp; Johnson (JNJ), Intuitive Surgical (ISRG), and Abbott Labs report this coming week.<\/p>\n<p>Here is how some of the major ETF&#8217;s have performed this year:<\/p>\n<p><a href=\"https:\/\/fundamentalis.com\/?attachment_id=6389\" rel=\"attachment wp-att-6389\">fc-healthcare-etfperf101616<\/a><\/p>\n<p>As a sector within the SP 500, Healthcare was up just 1.5% YTD as of 9\/30\/16, and up just +0.9% in Q3 &#8217;16. (Source: JP Morgan &#8220;Guide to the Markets&#8221;.)<\/p>\n<p>This blog post will be updated in a month. The election will be over, investors will be able to see what Congress looks like, and analysts will have greater detail on 2017 after earnings reports.<\/p>\n<p>The point being there is a divergence occurring between HealthCare sector earnings growth revisions and the sector performance.<\/p>\n<p>Keep an eye on this &#8211; it is where opportunity arises.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here is an interesting trend in HealthCare sector earnings growth revisions: Q3 &#8217;17: +12.3% on 10\/14 vs +12.0% as of&hellip;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[164,7,34,32,33],"tags":[],"class_list":["post-6386","post","type-post","status-publish","format-standard","hentry","category-health-care-sector","category-healthcare-reform","category-jnj","category-mrk","category-pfe"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/6386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6386"}],"version-history":[{"count":4,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/6386\/revisions"}],"predecessor-version":[{"id":6391,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/6386\/revisions\/6391"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}