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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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
