Johnson & Johnson (JNJ) is set to report its Q4 earnings on January 21. Analysts expect revenue of about $24.16 billion, up 7.3% year‑over‑year, and earnings of $2.49 per share, reflecting a 22.1% increase from last year. With expectations running high, this could be the right moment for investors to seek exposure to JNJ’s potential upside, particularly through exchange-traded funds (ETFs) that offer diversified exposure without the risk of holding the stock directly.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Investors seeking exposure to JNJ stock may consider iShares U.S. Pharmaceuticals ETF (IHE) and Portfolio Building Block World Pharma and Biotech Index ETF (PBPH). Let’s take a deeper look at these two ETFs.
iShares U.S. Pharmaceuticals ETF (IHE)
The IHE ETF focuses specifically on large U.S. pharmaceutical companies. The fund invests in a focused group of major drug companies known for steady cash flow, solid pipelines, and stable performance even when markets are volatile. Importantly, JNJ stock accounts for 23% of the IHE ETF’s total holdings.
Apart from JNJ, some of the top stocks in the IHE ETF are Eli Lilly (LLY), Merck (MRK), and Bristol-Myers Squibb (BMY). Overall, the ETF has $971.66 million in assets under management (AUM). Also, it has an expense ratio of 0.38%. Over the past six months, the IHE ETF has gained 28.09%.
On TipRanks, IHE has a Moderate Buy consensus rating based on 52 Buys, two Holds, and one Sell assigned in the last three months. At $102.17, the average IHE ETF price target implies 19.24% upside potential.
Portfolio Building Block World Pharma and Biotech Index ETF (PBPH)
The PBPH ETF offers exposure to the global pharmaceutical and biotechnology industries. It tracks the BITA Global Pharma and Biotech Select Index, which includes companies in developed markets that generate a major share of revenue from researching, developing, and commercializing human therapeutics. JNJ stock constitutes 8.97% of the ETF’s holdings.
Some of the top holdings in the PBPH ETF include AbbVie (ABBV), Roche (CH:ROG), and Novartis (CH:NOVN). Overall, the ETF has $20.63 million in AUM and an expense ratio of 0.13%. Over the past six months, the PBPH ETF has gained 1.48%.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 51 stocks held, 46 have Buy and five have Hold ratings. At $28.03, the average PBPH ETF price target implies a 9.31% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to JNJ stock, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider IHE and PBPH, as these ETFs offer exposure to Johnson & Johnson stock.