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Johnson & Johnson (JNJ - Free Report) set the ball rolling for the pharma and medical device manufacturer space’s first-quarter 2023 earnings on Apr 19, before the opening bell. The world's biggest healthcare products’ maker continued with its long streak of earnings beat. It topped the revenue estimate as well as lifted the full-year outlook.
The results have put ETFs having the highest allocation to this diversified drug maker, such as iShares U.S. Pharmaceuticals ETF (IHE - Free Report) , Health Care Select Sector SPDR Fund (XLV - Free Report) , iShares U.S. Healthcare ETF (IYH - Free Report) , VanEck Vectors Pharmaceutical ETF (PPH - Free Report) and Vanguard Health Care ETF (VHT - Free Report) in the spotlight.
Earnings per share came in at $2.68, beating the Zacks Consensus Estimate of $2.51 and improving 0.4% from the year-ago quarter. Revenues grew 5.6% year over year to $24.7 billion and edged past the Zacks Consensus Estimate of $23.57 billion. Strong sales were attributed to higher demand for everything from Tylenol to the company’s pharmaceutical products and contact lenses (see: all the Healthcare ETFs here).
For 2023, Johnson & Johnson lifted the revenue guidance to $97.9-$98.9 billion from the previous outlook of $96.9-$97.9 billion. It also raised the earnings per share guidance to $10.60-$10.70 from the previous outlook of $10.45-$10.65. The Zacks Consensus Estimate is pegged at $98.18 for revenues and $10.22 for earnings per share. The solid outlook is driven by newer cancer treatments and multiple myeloma drug Darzalex, which is likely to soften the blow from declining sales for some of its older drugs.
iShares U.S. Pharmaceuticals ETF provides exposure to 42 companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. Of these, Johnson and Johnson takes the top spot, accounting for a 23.5% share.
iShares U.S. Pharmaceuticals ETF has $395.4 million in AUM and charges 39 bps in fees and expenses. Volume is lower as it exchanges about 7,000 shares a day. The fund has a Zacks ETF Rank #4 (Sell) with a High risk outlook.
Health Care Select Sector SPDR Fund is the most-popular healthcare ETF and follows the Health Care Select Sector Index. It holds 65 securities in its basket, with JNJ taking the second spot at 8.5% of the assets. Pharma, and healthcare providers and services take the largest share at 30% and 21.7% share, respectively, from a sector look, while healthcare equipment and supplies, biotech and life sciences tools & services have double-digit exposure each.
Health Care Select Sector SPDR Fund manages $40 billion in its asset base and trades in a heavy volume of around 10 million shares. The expense ratio comes in at 0.10%. It has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
iShares U.S. Healthcare ETF offers exposure to 112 U.S. healthcare equipment and services, pharmaceuticals, and biotechnology companies by tracking the Russell 1000 Health Care RIC 22.5/45 Capped Gross Index. Here again, Johnson and Johnson is the second firm, accounting for 8.3% of the total assets. In terms of industrial exposure, pharma takes the top spot at 30%, followed by healthcare equipment (19.2%) and biotech (18.2%).
iShares U.S. Healthcare ETF has amassed $3.3 billion in its asset base, while charging 39 bps in annual fees. It trades in a moderate volume of around 42,000 shares a day and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: UnitedHealth's Solid Q1 Earnings Put These ETFs in Focus).
VanEck Vectors Pharmaceutical ETF follows the MVIS US Listed Pharmaceutical 25 Index, which measures the performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. It holds 25 stocks in its basket, with Johnson and Johnson occupying the top position at 7.6% of assets.
VanEck Vectors Pharmaceutical ETF has amassed $404.4 million in its asset base and trades in a good volume of about 141,000 shares a day. The expense ratio is 0.36%. VanEck Vectors Pharmaceutical ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Health Care ETF tracks the MSCI US Investable Market Health Care 25/50 Index and holds 410 stocks in its basket. Of these, JNJ takes the second spot with a 7.2% allocation. Pharma takes the largest share at 26.8%, while biotech and healthcare equipment round off the top three spots.
Vanguard Health Care ETF is also one of the most popular and liquid ETFs, with AUM of $17.4 billion and an average daily volume of about 193,000 shares. It charges 10 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
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ETFs to Buy on Solid Q1 JNJ Earnings Results
Johnson & Johnson (JNJ - Free Report) set the ball rolling for the pharma and medical device manufacturer space’s first-quarter 2023 earnings on Apr 19, before the opening bell. The world's biggest healthcare products’ maker continued with its long streak of earnings beat. It topped the revenue estimate as well as lifted the full-year outlook.
The results have put ETFs having the highest allocation to this diversified drug maker, such as iShares U.S. Pharmaceuticals ETF (IHE - Free Report) , Health Care Select Sector SPDR Fund (XLV - Free Report) , iShares U.S. Healthcare ETF (IYH - Free Report) , VanEck Vectors Pharmaceutical ETF (PPH - Free Report) and Vanguard Health Care ETF (VHT - Free Report) in the spotlight.
Earnings per share came in at $2.68, beating the Zacks Consensus Estimate of $2.51 and improving 0.4% from the year-ago quarter. Revenues grew 5.6% year over year to $24.7 billion and edged past the Zacks Consensus Estimate of $23.57 billion. Strong sales were attributed to higher demand for everything from Tylenol to the company’s pharmaceutical products and contact lenses (see: all the Healthcare ETFs here).
For 2023, Johnson & Johnson lifted the revenue guidance to $97.9-$98.9 billion from the previous outlook of $96.9-$97.9 billion. It also raised the earnings per share guidance to $10.60-$10.70 from the previous outlook of $10.45-$10.65. The Zacks Consensus Estimate is pegged at $98.18 for revenues and $10.22 for earnings per share. The solid outlook is driven by newer cancer treatments and multiple myeloma drug Darzalex, which is likely to soften the blow from declining sales for some of its older drugs.
iShares U.S. Pharmaceuticals ETF (IHE - Free Report)
iShares U.S. Pharmaceuticals ETF provides exposure to 42 companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. Of these, Johnson and Johnson takes the top spot, accounting for a 23.5% share.
iShares U.S. Pharmaceuticals ETF has $395.4 million in AUM and charges 39 bps in fees and expenses. Volume is lower as it exchanges about 7,000 shares a day. The fund has a Zacks ETF Rank #4 (Sell) with a High risk outlook.
Health Care Select Sector SPDR Fund (XLV - Free Report)
Health Care Select Sector SPDR Fund is the most-popular healthcare ETF and follows the Health Care Select Sector Index. It holds 65 securities in its basket, with JNJ taking the second spot at 8.5% of the assets. Pharma, and healthcare providers and services take the largest share at 30% and 21.7% share, respectively, from a sector look, while healthcare equipment and supplies, biotech and life sciences tools & services have double-digit exposure each.
Health Care Select Sector SPDR Fund manages $40 billion in its asset base and trades in a heavy volume of around 10 million shares. The expense ratio comes in at 0.10%. It has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
iShares U.S. Healthcare ETF (IYH - Free Report)
iShares U.S. Healthcare ETF offers exposure to 112 U.S. healthcare equipment and services, pharmaceuticals, and biotechnology companies by tracking the Russell 1000 Health Care RIC 22.5/45 Capped Gross Index. Here again, Johnson and Johnson is the second firm, accounting for 8.3% of the total assets. In terms of industrial exposure, pharma takes the top spot at 30%, followed by healthcare equipment (19.2%) and biotech (18.2%).
iShares U.S. Healthcare ETF has amassed $3.3 billion in its asset base, while charging 39 bps in annual fees. It trades in a moderate volume of around 42,000 shares a day and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: UnitedHealth's Solid Q1 Earnings Put These ETFs in Focus).
VanEck Vectors Pharmaceutical ETF (PPH - Free Report)
VanEck Vectors Pharmaceutical ETF follows the MVIS US Listed Pharmaceutical 25 Index, which measures the performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. It holds 25 stocks in its basket, with Johnson and Johnson occupying the top position at 7.6% of assets.
VanEck Vectors Pharmaceutical ETF has amassed $404.4 million in its asset base and trades in a good volume of about 141,000 shares a day. The expense ratio is 0.36%. VanEck Vectors Pharmaceutical ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Vanguard Health Care ETF (VHT - Free Report)
Vanguard Health Care ETF tracks the MSCI US Investable Market Health Care 25/50 Index and holds 410 stocks in its basket. Of these, JNJ takes the second spot with a 7.2% allocation. Pharma takes the largest share at 26.8%, while biotech and healthcare equipment round off the top three spots.
Vanguard Health Care ETF is also one of the most popular and liquid ETFs, with AUM of $17.4 billion and an average daily volume of about 193,000 shares. It charges 10 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.