Investors seeking momentum may have Technology Select Sector SPDR ETF (XLK - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of XLK are up approximately 46.5% from their 52-week low of $103.47/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
XLK in Focus
The underlying Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics. The expense ratio is 0.12%.
Why the move?
The dovish Fed minutes dragged down the treasury yields on Jul 7, which benefitted tech stocks as these are high-growth in nature. Moreover, fears of delta variant of COVID-19 are also causing higher demand for the tech stocks as these are winning ones amid the stay-at-home trend. Plus, the sector has solid long-term potential.
More Gains Ahead?
The fund has a Zacks Rank #2 (Buy) and a positive weighted alpha of 40.85. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Investors seeking momentum may have Technology Select Sector SPDR ETF (XLK - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of XLK are up approximately 46.5% from their 52-week low of $103.47/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
XLK in Focus
The underlying Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics. The expense ratio is 0.12%.
Why the move?
The dovish Fed minutes dragged down the treasury yields on Jul 7, which benefitted tech stocks as these are high-growth in nature. Moreover, fears of delta variant of COVID-19 are also causing higher demand for the tech stocks as these are winning ones amid the stay-at-home trend. Plus, the sector has solid long-term potential.
More Gains Ahead?
The fund has a Zacks Rank #2 (Buy) and a positive weighted alpha of 40.85. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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