For investors seeking momentum, iShares U.S. Home Construction ETF (ITB Quick QuoteITB - Free Report) is probably on radar. The fund just hit a 52-week high and is up 60.4% from its 52-week low price of $48.02/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:

ITB in Focus

The underlying Dow Jones U.S. Select Home Builders Index is a subset of the Dow Jones U.S. Household Goods Index. It is a free-float adjusted market capitalization-weighted index. It measures the performance of the home construction sector of the U.S. equity market. ITB charges 39 bps in annual fees.

Why the Move?

Homebuilding stocks and ETFs have gained lately on upbeat corporate earnings and upbeat sector data. The nationwide median sale price for existing homes rose slightly month over month in March to $375,700. However, it dropped 0.9% year over year.

The year-over-year decline in price has been seen for two successive months following a long period of price increases. Before that, the U.S. housing market saw 131 consecutive months of year-over-year median sale price increases. The likelihood of a decline in rates due to a less-hawkish Fed this year is also a plus for ITB.

More Gains Ahead?

The fund has a positive weighted alpha of 37.40. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.