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Energy ETF (OIH) Hits New 52-Week High
For investors seeking momentum, Vaneck Oil Services ETF (OIH - Free Report) is probably on radar. The fund just hit a 52-week high and is up 83.33% from its 52-week low price of $198.59/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 of where it might be headed:
OIH in Focus
The underlying MVIS U.S. Listed Oil Services 25 Index tracks the overall performance of U.S.-listed companies involved in oil services to the upstream oil sector, which include oil equipment, oil services, or oil drilling. The product charges 35 bps in annual fees (See: all Energy ETFs here).
Why the Move?
The energy sector has been an area to watch, given the tightening supply and a rise in oil prices. Extended OPEC+ production cuts and declining inventories in the United States are fueling the recent rally in oil prices. Optimism around a recovery in demand is another tailwind for the energy market.
More Gains Ahead?
Currently, OIH has a Zacks ETF Rank #3 (Hold) with a High risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 57.10, which gives cues of a further rally.