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Looking for Bargain Hunting? Top-Ranked ETFs to Buy
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The S&P 500 has been hovering around a record-high level despite rising rate worries. The recent rally has been propelled by Nvidia's exceptional earnings report. Both the S&P 500 and Dow Jones concluded yesterday at all-time highs, while the Nasdaq Composite finished just below its record peak (read: 5 ETFs at All-Time Highs as S&P 500 Rally Continues).
Notably, the Nasdaq 100 soared over 3% to achieve a historic high, marking its most significant single-day gain since March 2000, according to Bespoke Investment Group, per a Yahoo Finance article. Goldman Sachs Group Inc. strategists recently have boosted their forecast for the S&P 500 Index, now targeting 5,200 by year-end, citing increased profit estimates as the driving factor.
Goldman's optimism aligns with other bullish forecasts on Wall Street, including those from Tom Lee of Fundstrat Global Advisors and John Stoltzfus of Oppenheimer Asset Management, per Bloomberg, as quoted on Yahoo Finance.
Are You Looking For Bargains?
Bargain hunting in a market where the S&P 500 is at record levels may seem like a daunting task, but it's not impossible. While the broader market might be trading at premiums, there are always undervalued stocks that offer potential for significant returns.
These hidden gems can be found across various sectors. Below we highlight a few ETFs that have a Zacks Rank #1 (Strong Buy) or #2 (Buy). These ETFs have P/E less than 20X (S&P 500 P/E Ratio is at a current level of 22.78). These ETFs have beaten the S&P 500’s performance (up 6.7%) this year. Hence, these ETFs come across as good bargain ETFs with solid promises.
ETFs in Focus
Invesco S&P MidCap 400 Pure Growth ETF (RFG - Free Report) ) – P/E: 13.13X; Up 12.5% YTD
The underlying S&P MidCap 400 Pure Growth Index measures the performance of securities that exhibit strong growth characteristics in the S&P MidCap 400 Index. The fund charges 35 bps in fees. The fund’s Zacks Rank is #2.
The underlying MSCI US Investable Market Index (IMI)/Financials 25/50 measures the investment return of stocks in the financial sector. The fund charges 10 bps in fees. Its Zacks Rank is #1.
iShares U.S. Transportation ETF (IYT - Free Report) ) – P/E: 16.66X; Up 8.5% YTD
The underlying S&P Transportation Select Industry FMC Capped Index (USD) measures the performance of companies from the Industrial Transportation, Airline and General Industrial Services industries of the U.S. equity market. The fund charges 40 bps in fees. Its Zacks Rank is #2.
iShares U.S. Pharmaceuticals ETF (IHE - Free Report) – P/E: 17.82X; Up 10.4% YTD
The underlying Dow Jones U.S. Select Pharmaceuticals Index is free-float adjusted market capitalization-weighted index. It includes pharmaceutical companies such as manufacturers of prescription or over-the-counter drugs or vaccines, but excludes producers of vitamins. The fund charges 40 bps in fees. Its Zacks Rank is #2.
Communication Services Select Sector SPDR ETF (XLC - Free Report) ) – P/E: 17.87X; Up 10.6% YTD
The underlying Dow Jones U.S. Select Pharmaceuticals Index is free-float adjusted market capitalization-weighted index. It includes pharmaceutical companies such as manufacturers of prescription or over-the-counter drugs or vaccines, but excludes producers of vitamins. The fund charges 40 bps in fees. Its Zacks Rank is #2.
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Looking for Bargain Hunting? Top-Ranked ETFs to Buy
The S&P 500 has been hovering around a record-high level despite rising rate worries. The recent rally has been propelled by Nvidia's exceptional earnings report. Both the S&P 500 and Dow Jones concluded yesterday at all-time highs, while the Nasdaq Composite finished just below its record peak (read: 5 ETFs at All-Time Highs as S&P 500 Rally Continues).
Notably, the Nasdaq 100 soared over 3% to achieve a historic high, marking its most significant single-day gain since March 2000, according to Bespoke Investment Group, per a Yahoo Finance article. Goldman Sachs Group Inc. strategists recently have boosted their forecast for the S&P 500 Index, now targeting 5,200 by year-end, citing increased profit estimates as the driving factor.
Goldman's optimism aligns with other bullish forecasts on Wall Street, including those from Tom Lee of Fundstrat Global Advisors and John Stoltzfus of Oppenheimer Asset Management, per Bloomberg, as quoted on Yahoo Finance.
Are You Looking For Bargains?
Bargain hunting in a market where the S&P 500 is at record levels may seem like a daunting task, but it's not impossible. While the broader market might be trading at premiums, there are always undervalued stocks that offer potential for significant returns.
These hidden gems can be found across various sectors. Below we highlight a few ETFs that have a Zacks Rank #1 (Strong Buy) or #2 (Buy). These ETFs have P/E less than 20X (S&P 500 P/E Ratio is at a current level of 22.78). These ETFs have beaten the S&P 500’s performance (up 6.7%) this year. Hence, these ETFs come across as good bargain ETFs with solid promises.
ETFs in Focus
Invesco S&P MidCap 400 Pure Growth ETF (RFG - Free Report) ) – P/E: 13.13X; Up 12.5% YTD
The underlying S&P MidCap 400 Pure Growth Index measures the performance of securities that exhibit strong growth characteristics in the S&P MidCap 400 Index. The fund charges 35 bps in fees. The fund’s Zacks Rank is #2.
Vanguard Financials ETF (VFH - Free Report) ) – P/E: 13.70X; Up 5.4% YTD
The underlying MSCI US Investable Market Index (IMI)/Financials 25/50 measures the investment return of stocks in the financial sector. The fund charges 10 bps in fees. Its Zacks Rank is #1.
iShares U.S. Transportation ETF (IYT - Free Report) ) – P/E: 16.66X; Up 8.5% YTD
The underlying S&P Transportation Select Industry FMC Capped Index (USD) measures the performance of companies from the Industrial Transportation, Airline and General Industrial Services industries of the U.S. equity market. The fund charges 40 bps in fees. Its Zacks Rank is #2.
iShares U.S. Pharmaceuticals ETF (IHE - Free Report) – P/E: 17.82X; Up 10.4% YTD
The underlying Dow Jones U.S. Select Pharmaceuticals Index is free-float adjusted market capitalization-weighted index. It includes pharmaceutical companies such as manufacturers of prescription or over-the-counter drugs or vaccines, but excludes producers of vitamins. The fund charges 40 bps in fees. Its Zacks Rank is #2.
Communication Services Select Sector SPDR ETF (XLC - Free Report) ) – P/E: 17.87X; Up 10.6% YTD
The underlying Dow Jones U.S. Select Pharmaceuticals Index is free-float adjusted market capitalization-weighted index. It includes pharmaceutical companies such as manufacturers of prescription or over-the-counter drugs or vaccines, but excludes producers of vitamins. The fund charges 40 bps in fees. Its Zacks Rank is #2.