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For investors seeking momentum, iShares U.S. Pharmaceuticals ETF (IHE - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 42.76% from its 52-week low price of $77.52/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
IHE in Focus
The underlying Dow Jones U.S. Select Pharmaceuticals Indexincludes pharmaceutical companies such as manufacturers of prescription or over-the-counter drugs or vaccines. The product charges 37 bps in annual fees (see: all the Healthcare ETFs here).
Why the Move?
The pharmaceutical industry is benefiting from a combination of strong drug demand, promising clinical developments and increasing M&A activity. The fund has allocated about 26.5% of its weight to Eli Lilly (LLY - Free Report) .
Eli Lilly shares rose following Jefferies' decision to increase its price target to $1,700, the highest among Wall Street analysts.
As quoted on a Yahoo Finance article, Jefferies believes Lilly's growth potential in international GLP-1 markets remains underappreciated, noting that the overseas patient pool could be twice as large as that in the United States. The firm also highlighted favorable pricing trends and strong margins as additional growth drivers.
More Gains Ahead?
Currently, IHE has a Zacks ETF Rank #3 (Hold), with a High-risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 38.85 (as per Barchart.com), which gives cues of a further rally.
View the Zacks #1 Rank List
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Pharmaceuticals ETF (IHE) Hits a New 52-Week High
For investors seeking momentum, iShares U.S. Pharmaceuticals ETF (IHE - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 42.76% from its 52-week low price of $77.52/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
IHE in Focus
The underlying Dow Jones U.S. Select Pharmaceuticals Indexincludes pharmaceutical companies such as manufacturers of prescription or over-the-counter drugs or vaccines. The product charges 37 bps in annual fees (see: all the Healthcare ETFs here).
Why the Move?
The pharmaceutical industry is benefiting from a combination of strong drug demand, promising clinical developments and increasing M&A activity. The fund has allocated about 26.5% of its weight to Eli Lilly (LLY - Free Report) .
Eli Lilly shares rose following Jefferies' decision to increase its price target to $1,700, the highest among Wall Street analysts.
As quoted on a Yahoo Finance article, Jefferies believes Lilly's growth potential in international GLP-1 markets remains underappreciated, noting that the overseas patient pool could be twice as large as that in the United States. The firm also highlighted favorable pricing trends and strong margins as additional growth drivers.
More Gains Ahead?
Currently, IHE has a Zacks ETF Rank #3 (Hold), with a High-risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 38.85 (as per Barchart.com), which gives cues of a further rally.