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For investors seeking momentum, WisdomTree Earnings 500 Fund (EPS - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 25.1% from its 52-week low price of $25.92/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:
EPS in Focus
This fund provides exposure to earnings-generating companies within the large-cap segment of the broad U.S. stock market. It complements or replaces large-cap active and passive strategies with the potential for more favorable valuations. The ETF has key holdings in information technology, financials, healthcare, consumer discretionary and industrials. The ETF charges 28 bps in annual fees (see: all the Large Cap ETFs here).
Why the Move?
The earnings-weighted ETF has been an area to watch lately driven by expectation that companies will come up with big gains this earnings season and increased estimates for this year driven by tax cut savings. The Q4 earnings season is off to a strong start with earnings of 36 S&P 500 companies that have reported results, up 11.8% from the same period last year on 7.7% higher revenues, with 77.8% beating EPS estimates and 75% beating revenue estimates. Overall, total earnings and revenues are projected to grow 9.9% and 7%, respectively.
More Gains Ahead?
Currently, EPS has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, 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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Earnings-Focused ETF (EPS) Hits New 52-Week High
For investors seeking momentum, WisdomTree Earnings 500 Fund (EPS - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 25.1% from its 52-week low price of $25.92/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:
EPS in Focus
This fund provides exposure to earnings-generating companies within the large-cap segment of the broad U.S. stock market. It complements or replaces large-cap active and passive strategies with the potential for more favorable valuations. The ETF has key holdings in information technology, financials, healthcare, consumer discretionary and industrials. The ETF charges 28 bps in annual fees (see: all the Large Cap ETFs here).
Why the Move?
The earnings-weighted ETF has been an area to watch lately driven by expectation that companies will come up with big gains this earnings season and increased estimates for this year driven by tax cut savings. The Q4 earnings season is off to a strong start with earnings of 36 S&P 500 companies that have reported results, up 11.8% from the same period last year on 7.7% higher revenues, with 77.8% beating EPS estimates and 75% beating revenue estimates. Overall, total earnings and revenues are projected to grow 9.9% and 7%, respectively.
More Gains Ahead?
Currently, EPS has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, 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 >>