For investors seeking momentum, Consumer Staples Select Sector SPDR Fund (XLP - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 22.1% from its 52-week low price of $48.33/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:
XLP in Focus
The underlying the Consumer Staples Select Sector Index seeks to provide an effective representation of the consumer staples sector of the S&P 500 Index. It charges 13 bps in fees (see all Consumer Staples ETFs here).
Why the Move?
The consumer staples sector has been an area to watch lately given chances of a rate cut by the Fed. The sector performs well in a low-rate environment. Also, trade tensions between the United States and China is not over yet, thereby raising the appeal for consumer staples stocks. This is because the sector generally acts as a safe haven amid political and economic turmoil. Stocks in these sectors generally outperform during periods of low growth and high uncertainty.
More Gains Ahead?
The fund has a Zacks Rank #1 (Strong Buy). It also has a positive weighted alpha of 15.40, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.
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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 Staples Select Sector SPDR Fund (XLP - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 22.1% from its 52-week low price of $48.33/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:
XLP in Focus
The underlying the Consumer Staples Select Sector Index seeks to provide an effective representation of the consumer staples sector of the S&P 500 Index. It charges 13 bps in fees (see all Consumer Staples ETFs here).
Why the Move?
The consumer staples sector has been an area to watch lately given chances of a rate cut by the Fed. The sector performs well in a low-rate environment. Also, trade tensions between the United States and China is not over yet, thereby raising the appeal for consumer staples stocks. This is because the sector generally acts as a safe haven amid political and economic turmoil. Stocks in these sectors generally outperform during periods of low growth and high uncertainty.
More Gains Ahead?
The fund has a Zacks Rank #1 (Strong Buy). It also has a positive weighted alpha of 15.40, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.
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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