(LABD) Direxion Daily S&P Biotech - Ratings and Ratios
Inverse, Exposure, Swaps, Futures, Short
Description: LABD Direxion Daily S&P Biotech
The Direxion Daily S&P Biotech Bear 3X Shares (LABD) is an exchange-traded fund (ETF) designed to provide investors with a magnified inverse exposure to the biotechnology sub-industry, as tracked by the S&P Biotechnology Select Industry Index. By investing in a combination of financial instruments such as swap agreements, futures contracts, and short positions, LABD aims to deliver three times the daily inverse return of the underlying index.
The funds investment strategy is centered around its objective to provide a short exposure to the biotechnology sector, making it a potential tool for investors looking to hedge against declines in this specific industry or to speculate on its downturn. Given its non-diversified nature, LABD is more susceptible to volatility and sector-specific risks, emphasizing the need for cautious investment decisions.
Analyzing the technical data, the current price of LABD is $8.51, indicating a position below both its 20-day and 50-day Simple Moving Averages (SMA) of $8.81 and $9.18, respectively. This suggests a short-term downtrend. However, with its 200-day SMA at $6.96, the long-term trend appears bullish, indicating potential for growth if the broader market or the biotechnology sector experiences a downturn. The Average True Range (ATR) of 1.27, representing 14.97% of the current price, highlights the ETFs volatility, a characteristic common in leveraged and inverse funds.
Considering the fundamental data, LABDs Assets Under Management (AUM) stand at $57.85 million. While this is relatively modest, it is sufficient to provide liquidity for most investors. The size of the fund also reflects its niche appeal, catering to investors with specific views on the biotechnology sectors short-term movements.
Forecasting LABDs performance involves analyzing both technical and fundamental data. Given the current technical indicators, if the biotechnology sector experiences a downturn, LABD could potentially benefit, moving towards its 52-week high of $14.06. Conversely, a strong upswing in the sector could negatively impact LABD, pushing it towards its 52-week low of $4.85. Investors should closely monitor the sectors performance and adjust their strategies accordingly. With its 3X leverage, LABD is suited for short-term trading strategies rather than long-term investments, requiring active management to mitigate potential losses.
To navigate LABD effectively, investors must remain vigilant, monitoring both the ETFs technical indicators and the overall performance of the biotechnology sector. A disciplined approach, coupled with a clear understanding of the associated risks, is crucial for leveraging LABD as either a hedging tool or a speculative investment.
Additional Sources for LABD ETF
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle
LABD ETF Overview
Market Cap in USD | 51m |
Category | Trading--Inverse Equity |
TER | 1.10% |
IPO / Inception | 2015-05-28 |
LABD ETF Ratings
Growth Rating | -53.7 |
Fundamental | - |
Dividend Rating | 1.26 |
Rel. Strength | -10.1 |
Analysts | - |
Fair Price Momentum | 5.10 USD |
Fair Price DCF | - |
LABD Dividends
Dividend Yield 12m | 4.08% |
Yield on Cost 5y | 0.45% |
Annual Growth 5y | -19.45% |
Payout Consistency | 42.8% |
Payout Ratio | % |
LABD Growth Ratios
Growth Correlation 3m | -86.1% |
Growth Correlation 12m | 79.6% |
Growth Correlation 5y | -81.6% |
CAGR 5y | -34.46% |
CAGR/Max DD 5y | -0.37 |
Sharpe Ratio 12m | -0.57 |
Alpha | 28.91 |
Beta | -3.531 |
Volatility | 71.01% |
Current Volume | 19839.5k |
Average Volume 20d | 13681.2k |
Stop Loss | 6.4 (-8.6%) |
As of July 09, 2025, the stock is trading at USD 7.00 with a total of 19,839,481 shares traded.
Over the past week, the price has changed by -5.79%, over one month by -1.76%, over three months by -49.97% and over the past year by +1.65%.
No, based on ValueRay´s Analyses, Direxion Daily S&P Biotech (NYSE ARCA:LABD) is currently (July 2025) a stock to sell. It has a ValueRay Growth Rating of -53.73 and therefor a clear technical negative rating according to historical growth.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of LABD is around 5.10 USD . This means that LABD is currently overvalued and has a potential downside of -27.14%.
Direxion Daily S&P Biotech has no consensus analysts rating.
According to our own proprietary Forecast Model, LABD Direxion Daily S&P Biotech will be worth about 5.5 in July 2026. The stock is currently trading at 7.00. This means that the stock has a potential downside of -21.29%.
Issuer | Target | Up/Down from current |
---|---|---|
Wallstreet Target Price | - | - |
Analysts Target Price | - | - |
ValueRay Target Price | 5.5 | -21.3% |