Interpublic Group (IPG) - Consistently Beating Earnings Estimates and Poised for Another Surprise

Interpublic Group (IPG) has consistently beaten earnings estimates, with an average surprise of 23.18% over the last two quarters. In its most recent quarter, IPG reported $0.75 per share, a surprise of 36.36%. The Zacks Earnings ESP for the stock is positive, indicating a potential earnings beat. With a Zacks Rank #3 (Hold), IPG is well-positioned to keep its earnings surprise streak alive in its next quarterly report.

Johnson & Johnson (JNJ), a leading pharmaceutical and medical device company, recently reported its third-quarter 2025 earnings, which exceeded analysts' expectations. The company's strong performance, coupled with a bullish outlook, is likely to attract investors to healthcare exchange-traded funds (ETFs) that have significant exposure to JNJ.

A Brief Look at JNJ’s Q3 Results

JNJ's third-quarter earnings per share (EPS) of $2.80 beat the Zacks Consensus Estimate by 1.1%, marking the company's continued streak of earnings beats. Sales grew 6.8% year over year to $23.99 billion, outpacing the Zacks Consensus Estimate by 1%. Segment-wise, sales from both Innovative Medicines and MedTech jumped 6.8% year over year. Notably, sales of JNJ's blockbuster multiple myeloma medicine Darzalex soared 21.7% year over year to $3.67 billion in the third quarter. Additionally, the company raised its full-year sales expectation from $93.2-$93.6 billion to $93.5-$93.9 billion, and adjusted operational sales growth is expected to be in the range of 3.5-4.0%.

Johnson & Johnson's Impact on Healthcare ETFs

The impressive quarterly performance of JNJ may entice investors to tap into healthcare ETFs. As highlighted in a TradingView piece, several ETFs have significant exposure to JNJ, including:

- iShares U.S. Pharmaceuticals ETF (IHE): This fund provides exposure to 47 companies, with JNJ accounting for 23.47% of its holdings. It has gained 8.6% year to date and charges 36 basis points (bps) in fees.
- Health Care Select Sector SPDR Fund (XLV): This fund offers exposure to 60 companies, with JNJ accounting for 8.88% of its holdings. It has risen 3.6% year to date and charges 8 bps in fees.
- iShares U.S. Healthcare ETF (IYH): This fund provides exposure to 107 U.S. companies, with JNJ accounting for 8.55% of its holdings. It has surged 3.9% year to date and charges 38 bps in fees.
- First Trust Nasdaq Pharmaceuticals ETF (FTXH): This fund offers exposure to 50 U.S. pharmaceutical and biotechnology companies, with JNJ accounting for 7.56% of its holdings. It has gained 7.6% year to date and charges 60 bps in fees.
- Fidelity MSCI Health Care Index ETF (FHLC): This fund offers exposure to 323 companies from the healthcare sector, with JNJ accounting for 7.52% of its holdings. It has gained 5% year to date and charges 8 bps in fees.

Conclusion

Johnson & Johnson's robust third-quarter performance and positive outlook are likely to drive investor interest in healthcare ETFs, particularly those with significant exposure to the drugmaker. Investors should closely monitor JNJ's earnings reports and the performance of these ETFs to capitalize on potential growth opportunities.

References

https://www.tradingview.com/news/zacks:8b9fea3a3094b:0-etfs-to-watch-post-jnj-s-q3-earnings-surprise-bullish-outlook/