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Energy ETF (PXJ) Hits New 52-Week High

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For investors seeking momentum, Invesco Dynamic Oil & Gas Services ETF (PXJ - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 76% from its 52-week low price of $3.25/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:

PXJ in Focus

Invesco Dynamic Oil & Gas Services ETF targets the energy sector and evaluates companies based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action and value. It charges investors 63 basis points a year in fees (see: all the Energy ETFs here).

Why the Move?

Oil prices jumped after Russia announced 5% oil output cut in March. Russia will cut oil production by 500,000 barrels per day in March, Deputy Prime Minister Alexander Novak said on Friday, as the West enacted price caps on Russian oil and oil products.

The G7, the European Union and Australia agreed to ban the use of Western-supplied maritime insurance, finance and brokering for seaborne Russian oil priced above $60 per barrel from Dec 5 as part of Western sanctions on Moscow over its actions in Ukraine. This explains the rally in this energy ETF.

More Gains Ahead?

Currently, PXJ has a Zacks ETF Rank #2 (Buy) with a High risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces 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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