The improved outlook for the health care industry comes as many expect continued growth in the sector, despite an ongoing so-called earnings recession in the S&P 500. While FactSet anticipates the broad S&P 500 to show an earnings decline of -9.1% for Q1 2016, the health care sector is expected to report revenue growth of 8.9%.
Related: Resisting Biotech ETFs
S&P Global Market Intelligence also mirrors this sentiment, projecting S&P 500 Q1 EPS to decline 7.5% year-over-year but anticipating 2.9% earnings growth for the health care sector.
“Further examination of the IBB’s strength over the longer term, though, is what Ross says proves the resilience of the space. The ETF has managed to stay above its 200-week moving average for the last six years,” according to CNBC.
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iShares Nasdaq Biotechnology ETF
