For investors seeking momentum, State Street SPDR S&P Pharmaceuticals ETF (XPH Quick QuoteXPH - Free Report) is probably on the radar. The fund just hit a 52-week high and rose 61.4% from its 52-week low price of $35.22/share.

But, are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might head:

XPH in Focus

The underlying S&P Pharmaceuticals Select Industry Index represents the pharmaceuticals sub-industry portion of the S&P Total Markets Index. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Small Cap exchanges. The Pharmaceuticals Index is a modified equal weight index. The product charges 35 bps in annual fees (See all Financials ETFs here).

Why the Move?

With AI bubble fears doing rounds and the economy moving ahead at a sluggish pace, safe sectors like healthcare have been gaining precedence. Moreover, biotech stocks have been strengthening due to innovations and increased mergers and acquisitions.

More Gains Ahead?

Currently, XPH 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 39.32 (as per Barchart.com), which gives cues of a further rally.