Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Wednesday's ETF to Watch: iShares MSCI Israel Fund

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

The last few weeks have been incredibly volatile in U.S. markets. Though major indexes have been trending upwards for the majority of 2011, last week saw a major blip in performance as commodities, namely oil and silver, took a nose dive bringing down equities across the board. The major sell-off was due to an unexpected jump in jobless claims, as well as a reasonably stronger dollar, which was then followed by an unexpected dip in unemployment, helping to correct markets from their tailspin. This week will have its sights set on the closing days of earnings season as bellwether firms from around the world shed light on their most recent quarter's performance [see also First Trust Wins Auto ETF Race, Debuts CARZ].

Today, prior to market open, Teva Pharmaceutical (Nasdaq: TEVA  ) will release their quarterly earnings report. Teva is primarily concerned with generic drugs and creating cheaper alternatives to some of today's most popular drugs. This company has been able to feed off of the giant patent cliffs that major companies like Johnson & Johnson have been facing, turning once-profitable drugs for big pharma into products of its own. Teva is the 10th largest firm by market capitalization on the NASDAQ and is based in Petah Tikva, Israel. The company has been very active with acquisitions over the last few years as it just announced a plan to purchase biopharmaceutical company, Cephalon, for a whopping $6.8 billion.

Analysts are calling for the company to report EPS of $1.04 with revenues of approximately $4.3 billion. Last quarter, the company missed its marks, disappointing investors as it had surpassed its predictions for the three quarters prior. As we have seen with many major firms during earnings reports, strong or weak numbers can be completely overshadowed by guidance for the company's future. As more and more major pharma firms come to grips with the star drugs coming off patent, Teva will be the company to swoop in and undercut, which may provide for a strong guidance for the near future [see also Middle East ETFs Under Pressure as Protests Intensify].

With this major earnings announcement on tap, today's ETF to watch will be the iShares MSCI Israel Capped Investable Market Index (NYSE: EIS  ) . This fund seeks to replicate the performance of the Israeli equity market, and holds Teva as its top security, delegating over 23% of its assets to this company. From a sector standpoint, this fund strays from the norm by overweighting the health care and basic materials sectors, where most funds in fellow quasi-developed markets grant the most weight to financials and energy firms instead. EIS has lost over 5% on the year while paying out a dividend yield of 2.53%. If Teva misses its marks tomorrow, look for the fund to take a hit, but strong numbers or guidance could make for a solid trading day for EIS [see also April ETF Data: Assets Set Record, EEM Strikes Back].

[For more ETFs to watch sign up for our free ETF newsletter.]

More from

Disclosure: Photo courtesy of David Richfield. No positions at time of writing.

ETF Database is not an investment advisor, and any content published by ETF Database does not constitute individual investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. From time to time, issuers of exchange-traded products mentioned herein may place paid advertisements with ETF Database. All content on ETF Database is produced independently of any advertising relationships. Read the full disclaimer here.

Johnson & Johnson is a Motley Fool Inside Value pick. Teva Pharmaceutical Industries is a Motley Fool Global Gains pick. Johnson & Johnson is a Motley Fool Income Investor choice. Motley Fool Options has recommended a diagonal call position on Johnson & Johnson. The Fool owns shares of Johnson & Johnson, and Teva Pharmaceutical Industries. Alpha Newsletter Account, LLC owns shares of Johnson & Johnson. 

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1493012, ~/Articles/ArticleHandler.aspx, 10/27/2016 6:45:02 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 3:59 PM
EIS $46.52 Down -0.21 -0.45%
iShares MSCI Israe… CAPS Rating: *****
TEVA $43.15 Down -0.21 -0.48%
Teva Pharmaceutica… CAPS Rating: ****