(LABU) Direxion Daily S&P Biotech - Ratings and Ratios
Exchange: NYSE ARCA • Country: USA • Currency: USD • Type: Etf • ISIN: US25490K3234 • Trading--Leveraged Equity
LABU: Biotechnology, Pharmaceuticals, Medical, Healthcare, Research
The Direxion Daily S&P Biotech Bull 3X Shares (LABU) is a leveraged exchange-traded fund (ETF) designed to provide three times (3x) daily returns of the S&P Biotechnology Select Industry Index. Under normal market conditions, the fund allocates at least 80% of its net assets to financial instruments such as swap agreements, securities of the index, and ETFs that track the index. These investments are structured to deliver 3x daily leveraged exposure to the biotechnology sector, aligning with the funds stated objective. The S&P Biotechnology Select Industry Index is tailored to measure the performance of companies in the biotechnology sub-industry, classified under the Global Industry Classification Standards (GICS). This index serves as the benchmark for the funds daily returns, amplified by the 3x leverage.
As a trading tool, LABU is categorized as a leveraged equity ETF, specifically designed for short-term trading opportunities. It is important to note that the fund is non-diversified, meaning it can concentrate its holdings in a smaller number of securities, which may increase volatility. With approximately $769.06 million in assets under management (AUM), LABU is one of the more popular leveraged ETFs in the biotechnology space. Its listing on the NYSE ARCA exchange ensures liquidity for traders seeking to capitalize on intraday or daily movements in the biotech sector. For more information, investors can visit the funds website at http://www.direxionfunds.com.
Looking ahead, the future outlook for LABU will depend on the interplay of several factors. The biotechnology sector is inherently volatile, driven by breakthroughs in medical research, regulatory approvals, and market sentiment. Aswath Damodaran, a renowned financial analyst, would likely emphasize the importance of assessing the funds ability to maintain its 3x leverage in various market conditions. If the biotech sector experiences a period of significant innovation or consolidation, LABU could see amplified returns. However, the same leverage that drives upside potential also increases downside risk during market downturns. Additionally, the funds daily rebalancing mechanism means it is best suited for short-term traders rather than long-term investors. Over the next few years, the biotech industrys ability to adapt to changing regulatory landscapes and consumer demand will be critical in shaping the performance of LABU.
Additional Sources for LABU ETF
Tweets: X Stocktwits
Fund Manager Positions: Dataroma Stockcircle
LABU ETF Overview
Market Cap in USD | 669m |
Category | Trading--Leveraged Equity |
TER | 0.96% |
IPO / Inception | 2015-05-28 |
LABU ETF Ratings
Growth 5y | -72.7% |
Fundamental | - |
Dividend | 2.86% |
Rel. Strength Industry | -47.3 |
Analysts | - |
Fair Price Momentum | 51.36 USD |
Fair Price DCF | - |
LABU Dividends
Dividend Yield 12m | 0.32% |
Yield on Cost 5y | 0.10% |
Annual Growth 5y | -14.96% |
Payout Consistency | 49.6% |
LABU Growth Ratios
Growth Correlation 3m | -69% |
Growth Correlation 12m | -35% |
Growth Correlation 5y | -84% |
CAGR 5y | -24.84% |
CAGR/Max DD 5y | -0.25 |
Sharpe Ratio 12m | 0.59 |
Alpha | -66.39 |
Beta | 3.17 |
Volatility | 77.38% |
Current Volume | 733.9k |
Average Volume 20d | 1071.9k |
As of March 15, 2025, the stock is trading at USD 76.89 with a total of 733,899 shares traded.
Over the past week, the price has changed by -1.11%, over one month by -15.23%, over three months by -28.00% and over the past year by -41.61%.
No, based on ValueRay Analyses, Direxion Daily S&P Biotech (NYSE ARCA:LABU) is currently (March 2025) a stock to sell. It has a ValueRay Growth Rating of -72.74 and therefor a clear technical negative rating according to historical growth.
Based on ValueRays Analyses, Dividends and Discounted-Cash-Flow, the Fair Value of LABU as of March 2025 is 51.36. This means that LABU is currently overvalued and has a potential downside of -33.2%.
Direxion Daily S&P Biotech has no consensus analysts rating.
According to ValueRays Forecast Model, LABU Direxion Daily S&P Biotech will be worth about 61.6 in March 2026. The stock is currently trading at 76.89. This means that the stock has a potential downside of -19.83%.
Issuer | Forecast | Upside |
---|---|---|
Wallstreet Target Price | - | - |
Analysts Target Price | - | - |
ValueRay Target Price | 61.6 | -19.8% |