EIS: Israel Caught Up In The Tech Selloff, Where To Be A Buyer

Mike Zaccardi, CFA, CMT
7.82K Followers
(6min)

Summary

  • I have a hold rating on the iShares MSCI Israel ETF due to attractive valuation but cautionary technical indicators.
  • EIS has corrected 11% from its all-time high, with significant exposure to underperforming Information Technology and Financial sectors.
  • The ETF is cheap with a P/E ratio near 12x and a PEG ratio of 1.34x, but high volatility and low liquidity are concerns.
  • Buying on a further dip to the 200-day moving average offers a favorable risk/reward strategy given the current bearish technical setup.
Jerusalem old city Western Wall with Israeli flag

stellalevi

Some of the big country winners from 2024 have struggled recently. I noticed that shares of the iShares MSCI Israel ETF (NYSEARCA:EIS) have corrected 11% from their all-time high of $84 notched in late February. Israel’s soft returns lately correspond with

This article was written by

Mike Zaccardi, CFA, CMT
7.82K Followers
Freelance Financial Writer | Investments | Markets | Personal Finance | RetirementI create written content used in various formats including articles, blogs, emails, and social media for financial advisors and investment firms in a cost-efficient way. My passion is putting a narrative to financial data. Working with teams that include senior editors, investment strategists, marketing managers, data analysts, and executives, I contribute ideas to help make content relevant, accessible, and measurable. Having expertise in thematic investing, market events, client education, and compelling investment outlooks, I relate to everyday investors in a pithy way. I enjoy analyzing stock market sectors, ETFs, economic data, and broad market conditions, then producing snackable content for various audiences. Macro drivers of asset classes such as stocks, bonds, commodities, currencies, and crypto excite me. My thing is communicating finance with an educational and creative style. I also believe in producing evidence-based narratives using empirical data to drive home points. Charts are one of the many tools I leverage to tell a story in a simple but engaging way. I focus on SEO and specific style guides when appropriate.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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