An Adventurous Idea for Healthcare Earnings Season

Risk-tolerant traders looking for some added excitement with the healthcare during third-quarter earnings season have several leveraged ETFs to consider. The Direxion Daily Healthcare Bull 3X ETF (NYSEArca: CURE) is one of the dominant names among those funds.

CURE seeks daily investment results equal to 300% of the daily performance of the Health Care Select Sector Index. The index CURE tracks includes domestic companies from the healthcare sector, which includes the following industries: pharmaceuticals; health care equipment and supplies; health care providers and services; biotechnology; life sciences tools and services; and health care technology.

There are other catalysts to consider, including that the U.S. economy is moving into the late-cycle phase, overall growth may slow and signs of an economic slowdown could pop up. Consequently, investors may also turn to defensive sectors that are less economically sensitive, such as healthcare.

CURE Earnings Season Opportunities

Sophisticated traders often deploy leveraged ETFs, including CURE, during earnings seasons to take advantage of short-term moves. Data suggest analysts are currently bullish on healthcare stocks and the sector is already one of the best-performing groups in the S&P 500 this year.

“At the sector level, analysts are most optimistic on the Energy (59%), Health Care (58%), and Materials (58%) sectors, as these sectors have the highest percentages of Buy ratings,” according to FactSet.