For investors seeking momentum, Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 18% from its 52-week low price of $74.18/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 on where it might be headed:
XLY in Focus
XLY focuses on the consumer discretionary segment of the U.S. market. The fund has a large-cap focus with key holdings in media, Internet & direct marketing retail, specialty retail and hotels restaurants & leisure segments. It charges investors 14 basis points a year and has top holdings in Amazon (AMZN - Free Report) , Home Depot (HD - Free Report) and Comcast (CMCSA - Free Report) (see: all the Consumer Discretionary ETFs here).
Why the Move?
The consumer discretionary sector has been an area to watch lately given the host of positive news flows that are building enough confidence in the space. The consumer confidence jumped to the highest level in 16 years while trade deficit narrowed and inventories increased. All these indicate that economic growth has regained speed after faltering at the start of the year.
More Gains Ahead?
Currently, XLY has a Zacks ETF Rank of 3 or ‘Hold’ rating with a Medium risk outlook so it is hard to get a handle on its future returns in 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 still some promise for those who want to ride on this surging ETF a little 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 >>
For investors seeking momentum, Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 18% from its 52-week low price of $74.18/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 on where it might be headed:
XLY in Focus
XLY focuses on the consumer discretionary segment of the U.S. market. The fund has a large-cap focus with key holdings in media, Internet & direct marketing retail, specialty retail and hotels restaurants & leisure segments. It charges investors 14 basis points a year and has top holdings in Amazon (AMZN - Free Report) , Home Depot (HD - Free Report) and Comcast (CMCSA - Free Report) (see: all the Consumer Discretionary ETFs here).
Why the Move?
The consumer discretionary sector has been an area to watch lately given the host of positive news flows that are building enough confidence in the space. The consumer confidence jumped to the highest level in 16 years while trade deficit narrowed and inventories increased. All these indicate that economic growth has regained speed after faltering at the start of the year.
More Gains Ahead?
Currently, XLY has a Zacks ETF Rank of 3 or ‘Hold’ rating with a Medium risk outlook so it is hard to get a handle on its future returns in 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 still some promise for those who want to ride on this surging ETF a little 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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