For investors seeking momentum, S&P Oil & Gas Exploration & Production ETF (XOP Quick QuoteXOP - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 127% from its 52-week low price of $71.48/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

XOP in Focus

S&P Oil & Gas Exploration & Production ETF targets the oil and gas exploration and production corner of the broad energy space. It charges investors 35 basis points a year in fees (see: all the Energy ETFs here).

Why the Move?

The energy sector has been an area to watch lately, given an oil price surge buoyed by supply disruptions and unprecedented demand. given the oil price surge. Oil resumed its strength and reached its highest levels since March after Saudi Arabia raised crude prices for July. Easing of COVID-19 restrictions in China and the European Union agreement to ban 90% of Russian crude by the end of the year added to the strength. The dual news will continue to bolster demand and exacerbate worries over the already tightening supply.

More Gains Ahead?

Currently, XOP has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.