ProShares UltraShort Health Care (ARCA: RXD)

Ultime notizie per ProShares UltraShort Health Care (ARCA:RXD)

The Index is designed to measure the performance of health care companies included in the S&P 500 Index. The S&P 500 Index is designed to measure the performance of the largest 500 companies listed and domiciled in the U.S. The Index includes health care companies in the following industries according to the Global Industry Classification Standard (GICS) as health care equipment & supplies, health care providers and services, health care technology, biotechnology, pharmaceuticals, and life sciences tools and services. These companies are then weighted based on market capitalization. The Indexs composition and the assigned weights are reevaluated every September with additional weight adjustments in March, June, and December.

ProShares UltraShort Health Care

ProShares, the largest issuer of inverse and leveraged ETFs, announced 2-for-1 splits for two of its ETFs and reverse splits for nine of its funds. The ProShares Ultra Nasdaq Biotechnology (NASDAQ: <a class="ticker" href="/stock/bib#NASDAQ">BIB</a>) and the ProShares Short VIX Short-Term Futures ETF (NYSE: <a class="ticker" href="/stock/svxy#NYSE">SVXY</a>) will be split 2-for-1.

All splits will apply to shareholders of record as of the close of the markets on October 2, 2012, payable after the close of the markets on October 4, 2012. The funds will trade at their post-split price on October 5, 2012, according to a statement issued by ProShares.

Nine ProShares ETFs will be reverse split on a 1-for-4 basis. Those funds are as follows: ProShares UltraShort 20+ Year Treasury (NYSE: <a class="ticker" href="/stock/tbt#NYSE">TBT</a>), the ProShares UltraShort S&amp;P500 (NYSE: <a class="ticker" href="/stock/sds#NYSE">SDS</a>), the ProShares UltraShort Gold (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>), the ProShares UltraPro Short Dow30 (NYSE: <a class="ticker" href="/stock/sdow#NYSE">SDOW</a>), the ProShares UltraShort Basic Materials (NYSE: <a class="ticker" href="/stock/smn#NYSE">SMN</a>), the ProShares Ultra MSCI Brazil (NYSE: <a class="ticker" href="/stock/ubr#NYSE">UBR</a>), the ProShares UltraShort Health Care (NYSE: <a class="ticker" href="/stock/rxd#NYSE">RXD</a>), the ProShares UltraShort Nasdaq Biotech (NASDAQ: <a class="ticker" href="/stock/bis#NASDAQ">BIS</a>) and the ProShares UltraShort Consumer Goods (NYSE: <a class="ticker" href="/stock/szk#NYSE">SZK</a>).

Those funds will also trade at their post-split prices on October 5.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

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ProShares UltraShort Lehman 20+ Year Treasury

ProShares to Split 2, Reverse Split 9 ETFs

Health care stocks and ETFs are in the spotlight ahead of the U.S. Supreme Court's ruling on the Affordable Care Act, expected on Thursday. The court is likely to hand down one of three outcomes: keep Obamacare intact as-is, rule the individual mandate unconstitutional - thereby striking down the overall law itself - or rule against the individual mandate while upholding the rest of the law.

Traders have multiple ways to play these possible outcomes beyond traditional long ETFs such as the Health Care Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>) and the iShares Dow Jones U.S. Medical Devices Index Fund (NYSE: <a class="ticker" href="/stock/ihi#NYSE">IHI</a>). 

Those with a taste for adventure should consider the following leveraged ETFs ahead of and after the Obamacare ruling.

ProShares UltraShort Health Care (NYSE: <a class="ticker" href="/stock/rxd#NYSE">RXD</a>)

The ProShares UltraShort Health Care ETF seeks to deliver twice the inverse daily performance of the Dow Jones U.S. Health Care Index. That index is tracked by the iShares Dow Jones U.S. Healthcare Sector Index Fund (NYSE: <a class="ticker" href="/stock/iyh#NYSE">IYH</a>), so those that are long RXD ahead of and into the Obamacare ruling will want to be tracking the action in stocks such as Dow components Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>) and Pfizer (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>).

Traders with long positions in an ETF such as RXD - or short individual pharmaceuticals names - should cheer for the individual mandate to be struck down, but for the rest of Obamacare to be upheld. S&amp;P Capital IQ said in a research note that this scenario <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/06/2694761/ahead-of-obamacare-ruling-s-p-likes-health-care-spdr">could pressure</a> managed care providers, pharmaceuticals makers, health care facilities operators and health care services providers.

The ProShares Ultra Health Care ETF (NYSE: <a class="ticker" href="/stock/rxl#NYSE">RXL</a>) is RXD's bullish equivalent. As of the close of U.S. markets on June 25, Johnson &amp; Johnson, Pfizer and Merck (NYSE: <a class="ticker" href="/stock/mrk#NYSE">MRK</a>) accounted for about 30% of RXD's weight.

Direxion Daily Healthcare Bull 3X Shares (NYSE: <a class="ticker" href="/stock/cure#NYSE">CURE</a>)

Give Direxion, the second-largest issuer of inverse and leveraged ETFs, credit for raising awareness of CURE <a href="http://marketing2.direxionshares.com/LP=230">ahead of Thursday's ruling</a>.

"If the Affordable Care Law stands: The Congressional Budget Office ('CBO') says health insurance companies will have 32 million more customers. Insurers would benefit from the new insurance marketplaces or exchanges that states would have to set up for individuals shopping for insurance," Direxion said in the note.

On the other hand, if the individual mandate is revoked but the rest of the law is upheld, Direxion said the following regarding CURE: 

"If the court repeals the mandate as well as provisions requiring non-discriminatory coverage for people with pre-existing conditions, that could be a boon for insurance companies, since the federal government would still provide tens of billions of subsidies for people to buy insurance."

Direxion Daily Healthcare Bear 3X Shares (NYSE: <a class="ticker" href="/stock/sick#NYSE">SICK</a>)

SICK is CURE's bearish cousin. This fund could benefit even if the individual mandate is struck down and the rest of Obamacare is upheld. In Direxion's note, the company stated that, "if that happens, it may not last long because Congress would likely quickly act to repeal the subsidies."

Both CURE and SICK track the S&amp;P Health Care Select Sector Index, the same index used by the Health Care Select Sector SPDR.

For more on Obamacare trading ideas, click <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/06/2694761/ahead-of-obamacare-ruling-s-p-likes-health-care-spdr">here</a>.

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iShares Dow Jones US Medical Devices Index Fund

iShares Trust Dow Jones US Healthcare Sector Index Fund

SICK

Leveraged ETFs for the Obamacare Ruling

While the fate of the 2010 health care reform law may rest in the hands of the Supreme Court, the nation's focus on health care has returned for the moment. For investors, the following health care picks all pay a dividend and have seen double-digit percentage growth in their share price since the beginning of the year. They also all have healthy return on equity numbers, strong long-term EPS growth forecasts, and consensus buy recommendations from analysts.

Chemed (NYSE: <a class="ticker" href="/stock/che#NYSE">CHE</a>) is more than 22% higher than at the beginning of the year but still down more than 3% from a year ago. The Cincinnati-based home health care company recently declared its 163rd consecutive quarterly dividend. It has a market cap of $1.2 billion, a long-term EPS growth forecast of 12.5% and a return on equity of 19.6%. The stock has outperformed Amedisys (NASDAQ: <a class="ticker" href="/stock/amed#NASDAQ">AMED</a>) but underperformed Lincare Holdings (NASDAQ: <a class="ticker" href="/stock/lncr#NASDAQ">LNCR</a>) over the past six months.

See also: <a href="http://www.benzinga.com/trading-ideas/12/03/2413887/top-4-stocks-in-the-home-health-care-industry-with-the-highest-roe">Top Four Stocks in the Home Health Care Industry with the Highest ROE</a>

Cigna (NYSE: <a class="ticker" href="/stock/ci#NYSE">CI</a>) shares are trading almost 11% higher than at the beginning of the year. CEO David Cordani has been downplaying the likely impact of a Supreme Court ruling on the constitutionality of the 2010 health care law. The Connecticut-based health insurer has a $13.3 billion market cap and P/E and PEG ratios lower than the industry average. The dividend yield is less than 0.1%. Year to date, the stock's performance has been in line with the broader markets.

Coviden (NYSE: <a class="ticker" href="/stock/cov#NYSE">COV</a>) shares are trading more than 20% higher year to date after pulling back more than 5% from a recent 52-week high. The Dublin-based global health care products company recently announced the acquisition of medical device maker SuperDimension. Covidien has a market cap of $26.0 billion and a dividend yield of 1.7%. Over the past six months, the stock has outperformed competitors Becton, Dickson (NYSE: <a class="ticker" href="/stock/bdx#NYSE">BDX</a>) and Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>).

See also: <a href="http://www.benzinga.com/news/12/03/2434104/covidien-to-buy-superdimension-for-300-million">Coviden to Buy SuperDimension for $300 Million</a>

Mindray Medical International's (NYSE: <a class="ticker" href="/stock/mr#NYSE">MR</a>) share price is more than 26% higher year to date and near the 52-week high. The company reported better-than-expected fourth-quarter revenues and higher net income. The Chinese company has a market cap of $3.7 billion. The long-range EPS growth forecast is 14.9% and the dividend yield is 0.4%. Year to date, the stock has outperformed the likes of Baxter International (NYSE: <a class="ticker" href="/stock/bax#NYSE">BAX</a>) and Coviden, as well as the broader markets.

Novo Nordisk (NYSE: <a class="ticker" href="/stock/nvo#NYSE">NVO</a>) is up almost 25% year to date and shares are trading near the 52-week high. In the past five years, the Danish pharmaceutical company has seen growth of nearly 25% per year. The $97.8 billion market cap company has a dividend yield of 1.7%. The operating margin is much better than the industry average and the return on equity is 45.9%. The stock has outperformed competitors such as Pfizer (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>) over the past six months.

St. Jude Medical (NYSE: <a class="ticker" href="/stock/stj#NYSE">STJ</a>) saw its share price rise almost 27% in the first few weeks of the year but it has pulled back about 3% since. The medical device maker recently settled a royalty-related suit with Kensey Nash (NASDAQ: <a class="ticker" href="/stock/knsy#NASDAQ">KNSY</a>). St. Jude's market cap is $13.7 billion and its dividend yield is 2.2%. Sales have risen 11.2% over the past five years. The stock has outperformed competitors Boston Scientific (NYSE: <a class="ticker" href="/stock/bsx#NYSE">BSX</a>) and Medtronic (NYSE: <a class="ticker" href="/stock/mdt#NYSE">MDT</a>) year to date.

See also: <a href="http://www.benzinga.com/news/12/03/2432699/from-earlier-kensey-nash-announces-mediated-settlement-with-st-jude-medical-in-an">Kensey Nash Announces Mediated Settlement with St. Jude Medical</a>

Universal Health Services (NYSE: <a class="ticker" href="/stock/uhs#NYSE">UHS</a>) is almost 11% higher year to date but the share price has yet to fully recover from its plunge back in August. This operator of hospitals and health centers posted better-than-expected Q4 earnings. It has a return on equity of 18.6% and the long-term EPS growth forecast is 16.1%. The market cap is $4.2 billion and its dividend yield is 0.5%. The stock has outperformed peers HCA (NYSE: <a class="ticker" href="/stock/hca#NYSE">HCA</a>) and Tenet Health Care (NYSE: <a class="ticker" href="/stock/tch#NYSE">TCH</a>) over the past six months.

<div id="action-items">ACTION ITEMS:

Bullish: Investors interested in health care companies with healthy dividends may want to consider the following trades: 

<ul><li>AstraZeneca (NYSE: <a class="ticker" href="/stock/azn#NYSE">AZN</a>) has a dividend yield of 6.1%.</li>
<li>GlaxoSmithKline (NYSE: <a class="ticker" href="/stock/gsk#NYSE">GSK</a>) has a dividend yield of 5.0%.</li>
<li>Eli Lilly (NYSE: <a class="ticker" href="/stock/lly#NYSE">LLY</a>) has a dividend yield of 4.9%.</li>
<li>Sanofi (NYSE: <a class="ticker" href="/stock/sny#NYSE">SNY</a>) has a dividend yield of 4.5%.</li>
</ul>Bearish: Traders may prefer to consider these alternative positions:

<ul><li>ProShares UltraShort Health Care (NYSE: <a class="ticker" href="/stock/rxd#NYSE">RXD</a>) is trading near a 52-week low.</li>
<li>ProShares UltraShort Nasdaq Biotech (NASDAQ: <a class="ticker" href="/stock/bis#NASDAQ">BIS</a>) is trading near a 52-week low.</li>
</ul>Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.</div>

Dividends

AMED

KNSY

LNCR

St. Jude, Novo Nordisk and Other Health Care Stocks Worth a Look Now

Here's a quick look at some of the top performing health care stocks, year to date. These stocks all have a market cap of more than $1 billion and all pay a dividend.

Baxter International (NYSE: <a class="ticker" href="/stock/bax#NYSE">BAX</a>) is more than 11% higher than a month ago, and more than 17% higher than a year ago. The company just reported better-than-expected Q4 results and announced FDA approval of its fibrin sealant. This diversified health care company has a market cap of $31.3 billion and a dividend yield of 2.4%. The P/E ratio is less than the industry average. Over the past six months, the stock has outperformed Becton, Dickinson (NYSE: <a class="ticker" href="/stock/bdx#NYSE">BDX</a>) and Thermo Fisher (NYSE: <a class="ticker" href="/stock/tmo#NYSE">TMO</a>).

Covidien (NYSE: <a class="ticker" href="/stock/cov#NYSE">COV</a>) is almost 15% higher than a month ago and less than 10% below the 52-week high. The medical technology company just posted EPS that were better than expected, but also lowered its sales forecast for the fiscal year. This $24.9 billion market cap company has a dividend yield of 1.8%. Its P/E ratio is less than the industry average. The stock has outperformed competitors Becton, Dickinson and CR Bard (NYSE: <a class="ticker" href="/stock/bcr#NYSE">BCR</a>) over the past six months.

See also: <a href="http://www.benzinga.com/news/12/01/2286033/clinical-data-for-durability-ii-study-presented-at-iset-2012-met-predetermined-vp">Clinical Data for DURABILITY II Study Presented at ISET 2012</a>.

Dr. Reddy's Laboratories (NYSE: <a class="ticker" href="/stock/rdy#NYSE">RDY</a>) is up more than 16% from a month ago, but still down almost 4% from a year ago. This India-based pharmaceutical company has a dividend yield of 0.8% and a market cap of $5.8 billion. The long-range EPS growth forecast is 22.9% and the return on equity is 25.3%. The P/E ratio is less than the industry average but so is the operating margin. Over the past six months, the stock has outperformed competitor Teva Pharmaceuticals (NASDAQ: <a class="ticker" href="/stock/teva#NASDAQ">TEVA</a>).

Mindray Medical International (NYSE: <a class="ticker" href="/stock/mr#NYSE">MR</a>) shares are trading about 16% higher year to date and less than 5% below the 52-week high. The Chinese medical device maker recently said it plans to launch 7 to 10 new products for 2012. It has a dividend yield of 1.0%, the long-term EPS growth forecast is 15.9% and the operating margin is better than the industry average. Over the past six months, the stock has outperformed competitors Baxter and Covidien.

PerkinElmer (NYSE: <a class="ticker" href="/stock/pki#NYSE">PKI</a>) is up more than 20% since the beginning of the year, but still about 5% lower than a year ago. The company is expected to post double-digit EPS and revenue growth when it reports quarterly results on February 2. Based in Waltham, Mass., the company has a market cap of $2.7 billion, a dividend yield of 1.2% and a long-term EPS growth forecast of 14.3%. The stock has outperformed competitors such as Thermo Fisher over the past six months.

St. Jude Medical (NYSE: <a class="ticker" href="/stock/stj#NYSE">STJ</a>) is more than 21% higher year to date, up more than 8% just in the past week. The medical device maker recently posted better-than-expected quarterly results, prompting at least one analyst upgrade. St. Jude has a market cap of $13.3 billion and its dividend yield is 2.0%. The return on equity is 19.5% and the long-term EPS growth forecast is 12.4%. The stock has outperformed competitor Boston Scientific (NYSE: <a class="ticker" href="/stock/bsx#NYSE">BSX</a>) over the past six months.

See also: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/01/2291541/update-goldman-sachs-raises-target-to-40-on-st-jude-medi">Goldman Sachs Raises Target to $40 on St. Jude Medical</a>.

Zimmer Holdings (NYSE: <a class="ticker" href="/stock/zmh#NYSE">ZMH</a>) shares are trading almost 14% higher year to date, after an more than 7% bump in the past week when it beat earnings estimates and offered a better-than-expected profit forecast. The Indiana-based medical device maker has a market cap of $10.9 billion, a long-term EPS growth forecast of 9.6% and a dividend yield of 1.2%. Over the past six months, the stock's performance has been in line with fellow medical device maker Stryker (NYSE: <a class="ticker" href="/stock/syk#NYSE">SYK</a>).

See also: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/01/2298727/update-piper-jaffray-upgrades-zimmer-holdings-from-neutr">Piper Jaffray Upgrades Zimmer Holdings from Neutral to Overweight</a>.

<div id="action-items">ACTION ITEMS:

Bullish: Investors interested in exchange traded funds focused on health care might want to consider the following trades:

<ul><li>iShares Dow Jones US Medical Devices (NYSE: <a class="ticker" href="/stock/ihi#NYSE">IHI</a>) is more than 8% higher year to date.</li>
<li>ProShares Ultra Health Care (NYSE: <a class="ticker" href="/stock/rxl#NYSE">RXL</a>) is more than 7% higher year to date.</li>
<li>SPDR S&amp;P Health Care Equipment (NYSE: <a class="ticker" href="/stock/xhe#NYSE">XHE</a>) is about 7% higher year to date.</li>
<li>Rydex S&amp;P Equal Weight Health Care (NYSE: <a class="ticker" href="/stock/ryh#NYSE">RYH</a>) is more than 6% higher year to date.</li>
</ul>Bearish: Traders may prefer to consider these alternative positions:

<ul><li>ProShares UltraShort Health Care (NYSE: <a class="ticker" href="/stock/rxd#NYSE">RXD</a>) is trading near the 52-week low.</li>
<li>Direxion Daily Healthcare Bear 3X Shares (NYSE: <a class="ticker" href="/stock/sick#NYSE">SICK</a>) is trading near the 52-week low.</li>
</ul>Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.</div>

Rydex ETF Trust Rydex S&P Equal Weight Health ETF

TEVA

Top Performing Health Care Stocks in January

Health care companies Bristol-Myers Squibb (NYSE: <a class="ticker" href="/stock/bmy#NYSE">BMY</a>) and Quidel (NASDAQ: <a class="ticker" href="/stock/qdel#NASDAQ">QDEL</a>) reached new 52-week highs of $32.75 and $17.21 per share, respectively, in Wednesday's trading session.

Bristol-Myers saw its price target boosted by a Bank of America/Merrill Lynch analyst yesterday on belief that its Yervoy product would drive growth in the coming quarters. Revenue growth is expected from the October 27 report. Products of this New York-based global biopharmaceutical company also include Plavix and Abilify. Founded in 1887, Bristol-Myers now has a market cap of $53.8 billion.

The price-to-earnings ratio is higher than the industry average, but so is its operating margin. The return on equity is 20.7% and the dividend yield is 4.0%. Ten of 21 analysts consider it a Buy; none rate it a Sell. The share price is more than 21% higher than six months ago. The stock has outperformed competitors Pfizer (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>) and Merck (NYSE: <a class="ticker" href="/stock/mrk#NYSE">MRK</a>) over that time.

Quidel recently signed a distribution agreement with Life Technologies (NASDAQ: <a class="ticker" href="/stock/life#NASDAQ">LIFE</a>) and it won the European CE Mark for its new virus test for human metapneumovirus infection. San Diego-based Quidel is a leading diagnostic test solutions provider, marketing its products in the U.S., Europe, Japan and the Middle East. Its market cap is $564.9 million. It was founded in 1979.

Earnings per share are anticipated to grow 17.5% over the next five years. EPS for this year are forecast to have swung to a profit while revenues are estimated to be 39.9% higher year over year. Five of ten analysts rate the stock a Strong Buy. The share price is nearly 40% higher than six months ago. Over that time, the stock has outperformed competitor Alere (NYSE: <a class="ticker" href="/stock/alr#NYSE">ALR</a>).

Action Items: 

Bullish: Traders interested in exchange traded funds holding Bristol-Myers might want to consider the following trades:

<ul><li>PowerShares Dynamic Pharmaceuticals (NYSE: <a class="ticker" href="/stock/pjp#NYSE">PJP</a>): up more than 15% in the past year</li>
<li>iShares Dow Jones US Pharmaceuticals (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>): up more than 8% in the past year</li>
<li>Health Care Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>): up more than 5% in the past year</li>
</ul>

Bearish: Or traders might want to consider this alternative position:

<ul><li>ProShares UltraShort Health Care (NYSE: <a class="ticker" href="/stock/rxd#NYSE">RXD</a>): up more than 21% in the past quarter</li>
</ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

iShares Dow Jones US Pharmaceuticals Index Fund

LIFE

QDEL

Bristol-Myers and Quidel to Open Near 52-Week Highs

The markets ended the week closing lower two days in a row. Yet small cap biotech companies RTI Biologics (NASDAQ: <a class="ticker" href="/stock/rtix#NASDAQ">RTIX</a>) and STAAR Surgical (NASDAQ: <a class="ticker" href="/stock/staa#NASDAQ">STAA</a>) rose to new 52-week highs of $3.75 and $7.08 per share, respectively, in Friday's trading session.

RTI Biologics has been in a very strong uptrend since February and has hit 52-week highs ten times in the past month. It recently posted strong second-quarter results and raised its outlook for the full year. The Florida-based company produces orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues. It has a market cap of $201.3 million.

The long-term earnings per share growth forecast is 26.9%. The forward P/E ratio forecast is in line with the industry average and the PEG ratio is 0.9. Cash on hand has increased in recent quarters while long-term debt has decreased. Shares are trading more than 37% higher than at the beginning of the year. The stock has outperformed competitors Integra LifeSciences (NASDAQ: <a class="ticker" href="/stock/iart#NASDAQ">IART</a>) and Medtronic (NYSE: <a class="ticker" href="/stock/mdt#NYSE">MDT</a>), as well as the broader markets, year to date.

STAAR Surgical recently reported better-than-expected second-quarter results and boosted its guidance. The share price has risen more than 35% since then. The first quarter was the first profitable one since 2000. The California-based company develops, manufactures and sells implantable lenses for the cataracts and refractive surgery, as well as sells related instruments, devices and equipment. Its market cap is $247.9 million.

Cash on hand has increased in the past few quarters while long-term debt has decreased. Cash flow from operations has increased in that time as well. Revenue is forecast to be up 15% this year and up 13% in the following year. Shares are trading almost 46% higher than a year ago. The stock has outperformed competitor Cooper Companies (NASDAQ: <a class="ticker" href="/stock/coo#NASDAQ">COO</a>), as well as the broader markets, over the past six months.

Action Items: 

Bullish: Traders interested in biotech exchange traded funds might want to consider the following trades:

<ul><li>Biotech HOLDRs (NYSE: <a class="ticker" href="/stock/bbh#NYSE">BBH</a>): up almost 14% in the past year</li>
<li>iShares Nasdaq Biotechnology (NASDAQ: <a class="ticker" href="/stock/ibb#NASDAQ">IBB</a>): up more than 10% in the past year</li>
<li>SPDR S&amp;P Biotech (NYSE: <a class="ticker" href="/stock/xbi#NYSE">XBI</a>): up almost 8% in the past year</li>
</ul>

Bearish: Or traders looking for a hedge might want to consider these alternative positions:

<ul><li>ProShares UltraShort Health Care (NYSE: <a class="ticker" href="/stock/rxd#NYSE">RXD</a>): up more than 29% in the past month</li>
<li>ProShares UltraShort Nasdaq Biotech (NYSE: BIS): up more than 34% in the past month</li></ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

IART

RTIX

STAA

RTI Biologics and STAAR Surgical End the Week Near 52-Week Highs

Perrigo (NASDAQ: <a class="ticker" href="/stock/prgo#NASDAQ">PRGO</a>) is scheduled to report fourth-quarter fiscal 2012 results Tuesday morning, August 16. Jim Cramer called this health care products maker the “best knock-off company known to man” and said he expects it report a good quarter.

The consensus forecast has Perrigo posting quarterly earnings of $0.99 per share on revenues of $706.0 million. That is an increase from $0.71 per share and $619.4 million in the same period of last year. That EPS estimate has not changed in the past 90 days.

Full-year earnings are anticipated to have risen 28.9% from a year ago to $3.98 per share, while revenues are expected to come in at $2.8 billion, an annual increase of 21.7%. The full-year EPS estimate has not changed in the past 60 days.

The Company

Perrigo has a market cap of $8.1 billion and operates in four segments. The Consumer Healthcare segment offers over-the-counter pharmaceutical products. The Nutritionals segment provides infant formula and dietary supplement products. The Rx Pharmaceuticals segment manufactures and markets a portfolio of generic prescription drug products. And the API segment manufactures and markets active pharmaceutical ingredients used by the generic drug industry and branded pharmaceutical companies. The company was founded in 1887 and is headquartered in Allegan, Michigan.

During the three months that ended in June, Perrigo announced FDA approval of a generic equivalent to Zantac, received FDA approval to market a coated cinnamon nicotine gum, and launched a generic nasal spray. More recently, it completed the acquisition of privately held Paddock Labs.

Looking Ahead

Analysts so far expect to see sequential and year-over-year growth of both earnings and revenue in the current quarter. Note that analysts have underestimated per-share earnings in the past nine quarters.

Performance

Perrigo has a dividend yield of 0.3%, a return on equity of 24.6% and a long-term EPS growth forecast of 14.0%. But its P/E and PEG ratios are higher than the industry average. Yet six out of 13 analysts rate the stock at Buy or Strong Buy.

Shares have bounced back from the recent sell-off to open today at $89.24. The share price is more than 39% higher than at the beginning of the year. The stock has outperformed competitors Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>), Mylan (NASDAQ: <a class="ticker" href="/stock/myl#NASDAQ">MYL</a>) and Prestige Brands (NYSE: <a class="ticker" href="/stock/pbh#NYSE">PBH</a>), as well as the broader markets, year to date.

Action Items:

Bullish: Traders interested in exchange traded funds invested in Perrigo might want to consider the following trades:

<ul><li>First Trust Health Care AlphaDEX (NYSE: <a class="ticker" href="/stock/fxh#NYSE">FXH</a>): up almost 18% in the past year</li>
<li>iShares Dow Jones US Pharmaceuticals (NYSE: <a class="ticker" href="/stock/ihe#NYSE">IHE</a>): up almost 17% in the past year</li>
<li>iShares Nasdaq Biotechnology (NYSE: <a class="ticker" href="/stock/ibb#NYSE">IBB</a>): up almost 12% in the past year</li></ul>

Bearish: Traders looking for a contrarian play may want to consider these alternate positions:

<ul><li>ProShares UltraShort Health Care (NYSE: <a class="ticker" href="/stock/rxd#NYSE">RXD</a>): up more than 24% in the past month</li>
<li>Direxion Daily Healthcare Bear (NYSE: SICK): up more than 38% in the past month</li>
</ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Earnings

PRGO

Perrigo Earnings Preview

A report released on Thursday predicts that government spending on healthcare will rise dramatically over the next decade.

Despite all the talk in Washington about cutting hundreds of billions of dollars in annual spending in order to reduce the deficit, the government's share of the national healthcare spending is expected to increase from nearly 45% last year to about 50% by the year 2020.

The report from the Centers for Medicare &amp; Medicaid Services (<a class="ticker" href="/stock/cms#">CMS</a>), previously known as the Health Care Financing Administration (HCFA) says that spending on healthcare will increase an average of 5.8% over the next decade, far above the expected growth rate of the US economy.

One of the main drivers of the growth in healthcare spending will be President Barack Obama's healthcare reform, which will allow millions of previously uninsured people to obtain insurance benefits funded in part by government subsidies.

With nearly 30 million people expected to benefit from healthcare reform, the cost to the government will surge as America's healthcare expenditures nearly double from last year's $2.6 trillion to almost $4.6 trillion in 2020.

The newly insured will be younger and healthier on average than those currently insured, so more of their spending is expected to be on prescription drugs and physician services than on actual hospital visits.

This suggests that investors with a long term view may want to focus on companies in the health sector that are poised to profit off this demographic change.

Pharmaceutical giants like Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>), Pfizer (NYSE: <a class="ticker" href="/stock/pfe#NYSE">PFE</a>), Merck &amp; Co. (NYSE: <a class="ticker" href="/stock/mrk#NYSE">MRK</a>) and Abbott Laboratories (NYSE: <a class="ticker" href="/stock/abt#NYSE">ABT</a>) are probably the safest bets in the pharmaceutical sector. These well established companies have a long history of producing profits and will benefit if national pharmaceutical spending rises.

Some investors might prefer companies that have more upside. These investors should take a look at companies like Acorda Therapeutics (Nasdaq ACOR), Par Pharmaceutical Companies (NYSE: <a class="ticker" href="/stock/prx#NYSE">PRX</a>), VIVUS (Nasdaq: <a class="ticker" href="/stock/vvus#Nasdaq">VVUS</a>) and Orexigen Therapeutics (Nasdaq: <a class="ticker" href="/stock/orex#Nasdaq">OREX</a>).

All of these small cap stocks trades above their average 12-month price targets, have much more potential upside than the giant drug companies and are far more likely to be acquired by one of the bigger companies looking to buy growth and innovation.

For those who prefer diversification over stock picking, there are ETFs like the Health Care Select Sector SPDR Fund (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>) and the ProShares Ultra Health Care (NYSE: <a class="ticker" href="/stock/rxl#NYSE">RXL</a>).

These two ETFs will likely rise over the next decade and may best the broader market as healthcare spending takes up an ever increasing part of consumers' budgets.

However, some investors may feel that the inevitable budget cuts that President Barack Obama and the United States Congress will eventually agree to will lead to an overall reduction in national spending on healthcare.

These investors could short individual stocks or instead lower their risk by buying the ProShares UltraShort Health Care Fund (NYSE: <a class="ticker" href="/stock/rxd#NYSE">RXD</a>).

If healthcare spending actually takes a hit because the federal government drastically lowers spending, this ETF should climb higher.

Small Cap Analysis

Events

Econ #s

OREX

VVUS

How to Profit from Exploding Government Healthcare Costs 

Investors should avoid ETFs with limited assets and negligible trading volume.

iShares MSCI Emerging Markets Materials Sector Index Fund

EMMT

PowerShares Dynamic Financial Sector Portfolio

ETF Deathwatch

Stock volume on the exchanges has been down-right anemic as of late; in fact, yesterday’s volume was the lowest we have seen during an August (which is historically the lowest volume month) in nearly 40 years. There are several reasons for this low volume, namely that large, institutional traders and hedge fund managers are out on holiday until after Labor Day. 
Those of us who are lacking a house in The Hamptons still show up to trade every day, but are greeted with small movements in indexes and increased volatility in individual names. While this reinforces the case for being a stock picker, even well-loved names can make outsized moves in the wrong direction on low volume tapes. Therefore the best way to grind out day-trades is in leverages ETFs—that is what they were developed for anyway!
Here is a short list to copy, print out, and keep on your trading desk. Rest assured that one of these is guarantied to be moving around even on high volume days:
Ultra Short ETFs
•	Proshares Ultrashort Basic Materials (NYSE: <a class="ticker" href="/stock/smn#NYSE">SMN</a>) 
•	Proshares Ultrashort Consumer Goods (NYSE: <a class="ticker" href="/stock/szk#NYSE">SZK</a>) 
•	Proshares Ultrashort Consumer Services (NYSE: <a class="ticker" href="/stock/scc#NYSE">SCC</a>) 
•	Proshares Ultrashort Dow 30 (NYSE: <a class="ticker" href="/stock/dxd#NYSE">DXD</a>) 
•	Proshares Ultrashort Financials (NYSE: <a class="ticker" href="/stock/skf#NYSE">SKF</a>) 
•	Proshares Ultrashort Health Care (NYSE: <a class="ticker" href="/stock/rxd#NYSE">RXD</a>) 
•	Proshares Ultrashort Industrials (NYSE: <a class="ticker" href="/stock/sij#NYSE">SIJ</a>) 
•	Proshares Ultrashort 20+ Year Treasury (NYSE: <a class="ticker" href="/stock/tbt#NYSE">TBT</a>) 
•	Proshares Ultrashort Oil &amp; Gas (NYSE: <a class="ticker" href="/stock/dug#NYSE">DUG</a>) 
•	Proshares Ultrashort Nasdaq 100 QQQ (NYSEL QID) 
•	Proshares Ultrashort S&amp;P 500 (NYSE: <a class="ticker" href="/stock/sds#NYSE">SDS</a>)
Ultra Long ETFs
•	Proshares Ultralong Basic Materials (NYSE: <a class="ticker" href="/stock/uym#NYSE">UYM</a>) 
•	Proshares Ultralong Consumer Goods (NYSE: <a class="ticker" href="/stock/uge#NYSE">UGE</a>) 
•	Proshares Ultralong Consumer Services (NYSE: <a class="ticker" href="/stock/ucc#NYSE">UCC</a>) 
•	Proshares Ultralong Dow 30 (NYSE: <a class="ticker" href="/stock/ddm#NYSE">DDM</a>) 
•	Proshares Ultralong Financials (NYSE: <a class="ticker" href="/stock/uyg#NYSE">UYG</a>) 
•	Proshares Ultralong Health Care (NYSE: <a class="ticker" href="/stock/rxl#NYSE">RXL</a>) 
•	Proshares Ultralong Industrials (NYSE: <a class="ticker" href="/stock/uxi#NYSE">UXI</a>) 
•	Proshares Ultralong Oil and Gas (NYSE: <a class="ticker" href="/stock/dig#NYSE">DIG</a>) 
•	Proshares Ultralong Nasdaq 100 QQQ (NYSE: <a class="ticker" href="/stock/qld#NYSE">QLD</a>) 
•	Proshares Ultralong S&amp;P 500 (NYSE: <a class="ticker" href="/stock/sso#NYSE">SSO</a>)
<a href="http://at.zacks.com/?id=7279">Strong Buy Stocks That Have Tripled the Market. See them for free.</a>

Currency ETFs

ETFs for Low Volume Trading Days (FAS, SMN, UYM, RXL)

Here's the ETF Professor's ETF Watchlist for Thursday November 5, 2009.
If Qualcomm's earnings fail to lift the stock higher, and they very well may fail in the endeavor, take a look at the iShares Dow Jones US Technology ETF (NYSE: <a href="/stock/iyw">IYW</a>).
Cigna (NYSE: <a href="/stock/ci">CI</a>) reports earnings before the bell, so keep an eye on the iShares Dow Jones US Healthcare Provider (NYSE: <a href="/stock/ihf">IHF</a>). The bearish play here is the UltraShort Health Care ProShares (NYSE: <a href="/stock/rxd">RXD</a>). Both are thinly traded.
The Financial Select Sector SPDRS ETF (NYSE: <a href="/stock/xlf">XLF</a>) and the Regional Bank HOLDRS ETF (NYSE: <a href="/stock/rkh">RKH</a>) both erased most of Tuesday's gains during Wednesday's session.
U.S. Steel (NYSE: <a href="/stock/x">X</a>) has been getting tarred and feathered over the past month, but there was some unusual options trade on Wednesday and it was heavy put selling, so watch the Market Vectors Steel ETF (NYSE: <a href="/stock/slx">SLX</a>).
With CVS Caremark (NYSE: <a href="/stock/cvs">CVS</a>) reporting earnings and plenty of retail sales data coming out, the ETF Professor recommends both the Retail HOLDRs (NYSE: <a href="/stock/rth">RTH</a>) and the SPDR S&amp;P Retail ETF (NYSE: <a href="/stock/xrt">XRT</a>). Inverse play: ProShares UltraShort Consumer Goods (NYSE: <a href="/stock/szk">SZK</a>), another thinly traded issue.
Asian stocks were down, so let's watch the CurrencyShares Japanese Yen Trust (NYSE: <a href="/stock/fxy">FXY</a>) and its inverse cousin, the UltraShort Yen ProShares (NYSE: <a href="/stock/ycs">YCS</a>).

iShares Dow Jones US Health Care Provides Index Fund

iShares Dow Jones US Technology Sector Index Fund

Merrill Lynch Retail HOLDRS Trust due 12/31/41

ETFs To Watch On November 5, 2009 (XRT, XLF, SLX, FXY)

ProShares UltraShort Health Care -2x Shares

Comments

ProShares UltraShort Health Care

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Ultime notizie per ProShares UltraShort Health Care (ARCA:RXD)

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