As we get ready to end the best performing quarter since 1998, investors look forward to the start of earnings season. The S&P 500 soared more than 16% since the start of the 2nd quarter. This was the best showing since a 21% jump we saw in the 4th quarter of 1998. However, year-to-date it’s a much different story. The disastrous start to the trading year has barely put the S&P 500 in the black. As of yesterday, the S&P was up 2.6%, much better than the Dow Jones, but much less than the Nasdaq. Clearly the tech sector led us from the depths of hell on March 8th.
I still love the way the healthcare group is performing. Although I do like big pharma such as Abbott and Bristol, I think you have more bang for your buck with the ancillary stocks. Healthcare equipment, products and services should do extremely well. On a technical basis they’re poised to make a good move. Today I added Lab Corp of America (LH) and Isis Pharma (ISIS). Lab Corp is a premier healthcare services company. You may remember that a few years ago they won the United Healthcare contract to be a preferred provider, from their rival Quest Diagnostic. This was huge for Lab Corp, as their revenues ratcheted to over $4 billion over the past 12 months.
Isis is more of a bio-tech company that should be profitable this fiscal year. However, this small cap stock is generally not a company that makes money. That said, it should be only considered for aggressive investors. The technicals look very strong, as the stock is coming out of a nine month base. Please adhere to my stop orders if you decided to take a position.
Until tomorrow, I wish you all a great day…
| Tags: earnings season, investors | ||
| Posted in News and Opinion |
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