Here is how IHI CORP (IHICY) and Mitsubishi Heavy Industries, Ltd. (MHVYF) have performed compared to their sector so far this year.
Health Care sector at 52-week highs, led by Eli Lilly. Hold rating on iShares U.S. Medical Devices ETF (IHI) due to high valuation and secular headwinds. IHI has strong chart setup but high valuation, concentration risk, and weak seasonal trends; resistance at $59, support at $53-$54.
Here is how IHI CORP (IHICY) and Mitsubishi Heavy Industries, Ltd. (MHVYF) have performed compared to their sector so far this year.
IHI CORP (IHICY) witnesses a hammer chart pattern, indicating support found by the stock after losing some value lately. This coupled with an upward trend in earnings estimate revisions could mean a trend reversal for the stock in the near term.
iShares U.S. Medical Devices ETF has underperformed in recent times. The healthcare sector is considered defensive, but medical devices may still be sensitive to economic downturns. IHI's present valuation is, in my opinion, fair (unlike at the end of 2021), but there are still concentration risks and little margin of safety in earnings growth numbers.