Investors seeking momentum may have iShares U.S. Pharmaceuticals ETF IHE 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. 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.
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Eli Lilly and Company (LLY): Free Stock Analysis Report iShares U.S. Pharmaceuticals ETF (IHE): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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