For investors seeking momentum, SPDR S&P Biotech ETF (XBI - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 67.9% from its 52-week low price of $62.94/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:
XBI in Focus
XBI focuses on the biotechnology segment of the U.S. market and offers equal-weight exposure across stocks. It is spread across various market spectrums, with 46.7% allocated to small caps, 31.3% to mid caps and the rest to large caps. The fund charges investors 35 basis points a year in fees (see: all the Healthcare ETFs here).
Why the Move?
The biotech corner of the broad healthcare sector has been an area to watch lately, given the positive developments in coronavirus treatment. Moderna (MRNA) is the latest drugmaker to have shown promising results in an early-stage clinical trial for a COVID-19 vaccine. The Phase 1 trial developed neutralizing antibodies in coronavirus patients, a promising finding that has propelled the vaccine to the next phase of clinical testing.
More Gains Ahead?
Currently, XBI has a Zacks ETF Rank #2 (Buy) with a High risk outlook, suggesting continued outperformance in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride 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, SPDR S&P Biotech ETF (XBI - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 67.9% from its 52-week low price of $62.94/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:
XBI in Focus
XBI focuses on the biotechnology segment of the U.S. market and offers equal-weight exposure across stocks. It is spread across various market spectrums, with 46.7% allocated to small caps, 31.3% to mid caps and the rest to large caps. The fund charges investors 35 basis points a year in fees (see: all the Healthcare ETFs here).
Why the Move?
The biotech corner of the broad healthcare sector has been an area to watch lately, given the positive developments in coronavirus treatment. Moderna (MRNA) is the latest drugmaker to have shown promising results in an early-stage clinical trial for a COVID-19 vaccine. The Phase 1 trial developed neutralizing antibodies in coronavirus patients, a promising finding that has propelled the vaccine to the next phase of clinical testing.
More Gains Ahead?
Currently, XBI has a Zacks ETF Rank #2 (Buy) with a High risk outlook, suggesting continued outperformance in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride 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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