Investors seeking momentum may have SPDR S&P Aerospace & Defense ETF (XAR - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of XAR are up approximately 41.7% from the 52-week low of $55.72/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.
XAR in Focus
XAR focuses on providing exposure to aerospace and defense companies in the U.S. equity market. It charges 35 basis points in fee per year and has top holdings in Orbital ATK Inc. , KLX Inc. and Triumph Group Inc. (TGI - Free Report) with 4.4%, 4.0% and 3.9% allocation, respectively (as of Sep 20, 2017) (see all Industrials ETFs here).
Why the Move?
Lately, the defense sector has been in the spotlight. Following repeated missile tests by North Korea, President Donald Trump threatened to destroy the nation completely. This prompted North Korean leader Kim Jong-Un to warn the United States of the "highest level of hard-line countermeasure in history”. Moreover, North Korea’s foreign minister suggested that another hydrogen bomb test in the Pacific Ocean might be in the cards. Increasing tensions relating to North Korea have brought these sector ETFs into play again. Moreover, the earnings season has also been quite impressive for companies in this sector.
More Gains Ahead?
Currently, XAR has a Zacks ETF Rank #1 (Strong Buy) with a Medium Risk outlook. Moreover, the ETF has a weighted alpha of 37.30. So, there is a promising 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 SPDR S&P Aerospace & Defense ETF (XAR - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of XAR are up approximately 41.7% from the 52-week low of $55.72/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.
XAR in Focus
XAR focuses on providing exposure to aerospace and defense companies in the U.S. equity market. It charges 35 basis points in fee per year and has top holdings in Orbital ATK Inc. , KLX Inc. and Triumph Group Inc. (TGI - Free Report) with 4.4%, 4.0% and 3.9% allocation, respectively (as of Sep 20, 2017) (see all Industrials ETFs here).
Why the Move?
Lately, the defense sector has been in the spotlight. Following repeated missile tests by North Korea, President Donald Trump threatened to destroy the nation completely. This prompted North Korean leader Kim Jong-Un to warn the United States of the "highest level of hard-line countermeasure in history”. Moreover, North Korea’s foreign minister suggested that another hydrogen bomb test in the Pacific Ocean might be in the cards. Increasing tensions relating to North Korea have brought these sector ETFs into play again. Moreover, the earnings season has also been quite impressive for companies in this sector.
More Gains Ahead?
Currently, XAR has a Zacks ETF Rank #1 (Strong Buy) with a Medium Risk outlook. Moreover, the ETF has a weighted alpha of 37.30. So, there is a promising 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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