Welcome!

News Feed Item

The Zacks Analyst Blog Highlights: Fidelity Select Health Care Fund, Fidelity Select Pharmaceuticals, Fidelity Select Medical Equipment and Systems Portfolio, Icon Healthcare Fund and Fidelity Select Medical Delivery

CHICAGO, Aug. 22, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Fidelity Select Health Care Fund (FSPHX-Free Report), Fidelity Select Pharmaceuticals (FPHAX-Free Report), Fidelity Select Medical Equipment and Systems Portfolio (FSMEX-Free Report), Icon Healthcare Fund (ICHCX-Free Report) and Fidelity Select Medical Delivery (FSHCX-Free Report).

Zacks Investment Research, Inc., www.zacks.com.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday's Analyst Blog:

5 Healthcare Mutual Funds Riding High on Earnings

With most of the Q2 2014 filings in the books, the medical sector has posted the top year to date earnings growth out of all the 16 Zacks sectors.  The sector as a whole is showing 15.6% year over year earnings growth.   

Further, the medical sector posted very impressive year over year revenue growth as well; 12.3% for Q2 2014.  Further, more than 75% of the companies in the medical sector beat their earnings and revenue expectations this quarter. 

While the earnings and revenue numbers are very impressive, we are now looking towards the second half of 2014, and into 2015.  Currently, we expect the medical sector to post double digit earnings growth for 2014, and 2015; 12.9% for 2014, and 12.4% in 2015. 

On the Revenue front, the medical sector is expected to post double digit growth in 2014, and then see some pull back in 2015; 10.9% for 2014, and 5.2% for 2015. 

Due to the positive Q2 results, and future guidance, we believe a wise investor should look to some strongly performing Healthcare Mutual Funds to capture the sectors growth through 2015.  We utilized the Zacks Mutual Fund Ranking system to identify the best positioned and best performing healthcare funds. 

To better understand the Zacks Mutual Fund Ranking System, please click here

Top Healthcare Mutual Funds

Fidelity Select Health Care Fund (FSPHX-Free Report) a Zacks Rank #1 (Strong Buy) is a balanced allocated fund, that holds about 48% of their position in the healthcare sector, with the remainder spread out multiple different industries including Tech, Finance, Industrial, and Services.  The fund is comprised of companies that are principally engaged in the design, manufacture, or sale of products or services used for or in connection with healthcare or medicine.  This gives the fund a broader spectrum of companies, and enables it to withstand headwinds more efficiently. 

The fund is heavy companies like, Actavis, Biogen, McKesson, Boston Scientific, and Agilent Technologies.  This fund as a minimum investment of $2,500, and is not front loaded (fees). 

Past Performance: 1 year 49.80%, 3 year 27.19%, 5 year 27.23%

Fidelity Select Pharmaceuticals (FPHAX-Free Report) a Zacks Rank #1 (Strong Buy) is much heavier in the health sector, with just under 69% of the fund, than our previous recommendation.  This fund invests in companies that are engaged in the research, development, manufacture, and distribution of various biotechnological products, services, and processes.  This fund was opened in 2001, and has strong 10 year return: 13.81%, vs. S&P 500 10 year at 8.3%.

The fund is heavy Abbvie, Merk, Johnson & Johnson, Astrazeneca, and Bristol Myers.  The fund has a minimum investment of $2,500, and is not front loaded (fees). 

Past Performance: 1 year 39.26%, 3 year 22.77%, 5 year 24.14%

Fidelity Select Medical Equipment and Systems Portfolio (FSMEX-Free Report) a Zacks Rank #1 (Strong Buy) is over weighted in the health sector, with at least 80% of their assets in common stocks of companies principally engaged in research, development, manufacture, distribution, supply, or sale of medical equipment and devices and related technologies.  Currently, the portfolio is just below 65% in health sector, with the remainder spread amongst Finance, Technology, Other, Retail trade, Services, and Industrial.  This fund was started in 1998, and has posted strong 10 year returns (+11.84%), which have outperformed the S&P 500 at 8.3%. 

The fund is heavy Covidien, Boston Scientific, Stryker Corp, Abbott Labs, and Medtronic.  The fund has a minimum investment of $2,500, and is not front loaded. 

Past Performance: 1 year 35.34%, 3 year 16.32%, 5 year 18.53%.

Icon Healthcare Fund (ICHCX-Free Report) a Zacks Rank #1 (Strong Buy) is a more balanced healthcare mutual fund, with just under 32% of the fund in the health sector.  This fund diversifies itself with other sectors who are related to the healthcare sector, with large holdings in Other, Finance, Services, Retail trade, Industrial, and non-durable sectors.  This fund is relatively inexpensive to enter, with only $1,000 minimum initial investment, and zero front loaded fees.  In the past 10 years, the fund has outperformed the S&P 500 by posting returns of 10.75% vs 8.3%.

This fund has the greatest percentage of their fund in Johnson & Johnson, Gilead, Celgene, Cigna, and UnitedHealth group.

Past Performance: 1 year 30.11%, 3 year 20.50%, 5 year 20.32%.

Fidelity Select Medical Delivery (FSHCX-Free Report) a Zacks Rank #1 (Strong Buy) who's objective is to seek out capital appreciation.  The fund normally invests at least 80% of assets in common stocks of companies principally engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services.  The fund offers dividends and capital gains twice a year in April and December.   This fund was started in 1986, and has outperformed the S&P 500 over the past 10 years, 15.73% vs. 8.3%. 

The fund is heavy UnitedHealth Group, Express Scripts, McKesson, Cardinal Health, and Cigna Corp.  FSHCX has a minimum investment of $2,500, and is not front loaded. 

Past Performance: 1 year 25.12%, 3 year 13.74%, 5 year 21.87%. 

Bottom Line

The healthcare sector is positioned for sustained earnings and revenue growth out through 2015.  So if you are inclined to invest into the healthcare sector, you should look to add these highly performing mutual funds to your portfolio.  

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

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! Register for your free subscription to Profit from the Pros.

Get the full Report on FSPHX - FREE

Get the full Report on FPHAX - FREE

Get the full Report on FSMEX - FREE

Get the full Report on ICHCX - FREE

Get the full Report on FSHCX - FREE

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

Join us on Facebook: http://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

[email protected]

http://www.zacks.com

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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
"Coalfire is a cyber-risk, security and compliance assessment and advisory services firm. We do a lot of work with the cloud service provider community," explained Ryan McGowan, Vice President, Sales (West) at Coalfire Systems, Inc., in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...