Back to top

Image: Bigstock

Pharma ETF (IHE) Hit a 52-Week High

Read MoreHide Full Article

Investors seeking momentum may have iShares U.S. Pharmaceuticals ETF (IHE - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of IHE are up approximately 29.6% from their 52-week low of $58.97/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

IHE In Focus

The underlying Dow Jones U.S. Select Pharmaceuticals Index is free-float adjusted market capitalization-weighted index. It includes pharmaceutical companies such as manufacturers of prescription or over-the-counter drugs or vaccines, but excludes producers of vitamins. The fund charges 38 bps in fees.

Why The Move?

The fund IHE invests about 23.66% of its weight in Eli Lilly & Co (LLY - Free Report) . Eli Lilly stock gained on earnings and upbeat guidance. LLY shares added 9.6% over the past week. Eli Lilly’s investment spree is another positive for the fund.

The company recently said that it will invest $1.2 billion in Puerto Rico (as quoted on Economic Times). Eli Lilly recently said that it plans to build a new $3 billion manufacturing plant in the Netherlands to expand the production capacity for its experimental weight-loss pill, orforglipron, and other oral medicines (per Reuters).

More Gains Ahead?

The fund has a positive weighted alpha of 13.47. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Eli Lilly and Company (LLY) - free report >>

iShares U.S. Pharmaceuticals ETF (IHE) - free report >>

Published in