IHE: U.S. Pharmaceuticals ETF With Excellent GARP Features

The Sunday Investor7.16K FollowersFollow5ShareSavePlay(9min)CommentsSummaryThe iShares U.S. Pharmaceuticals ETF is led by Johnson & Johnson and Eli Lilly, two stocks whose earnings per share have nearly doubled over the last twelve months.Also in IHE's top ten holdings list are lower-growth but cheaper stocks like Pfizer. Overall, this balance results in a portfolio with very appealing growth-at-a-reasonable-price statistics.My calculations show that IHE's one-year estimated EPS growth rate is an exceptional 19.07%, while its forward P/E ratio sits at just 15.69x.IHE also benefits from positive earnings revisions, as indicated by Seeking Alpha's Quant system. It's these reasons why IHE is on an impressive nine-month winning streak.With these attractive fundamentals and positive earnings outlook, I rate IHE a "buy." Getty Images Investment Thesis The iShares U.S. Pharmaceuticals ETF (IHE) trades at 15.69x forward earnings and holds stocks that, in aggregate, are expected by analysts to increase their earnings per share by 19.07% over the next twelve months. From a GARP perspective, itThis article was written byThe Sunday Investor7.16K FollowersFollowThe Sunday Investor is focused exclusively on U.S. Equity ETFs. He has a strong analytical background, has received a Certificate of Advanced Investment Advice from the Canadian Securities Institute, and has completed all the educational requirements for the Chartered Investment Manager designation.Having covered hundreds of ETFs on Seeking Alpha, The Sunday Investor has developed a complex, proprietary ETF Rankings system which he shares on his website, etf-rankings.com. Nearly 1,000 ETFs receive individual factor scores covering costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment, which feed into an easy-to-understand composite score from 1-10.

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