For investors seeking momentum, iShares U.S. Aerospace & Defense ETF (ITA Quick QuoteITA - Free Report) is probably on radar now. The fund just hit a 52-week high and is up around 45.6% from its 52-week low price of $141.49/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:

ITA in Focus

The fund offers exposure to the Dow Jones U.S. Select Aerospace & Defense Index which measures the performance of the aerospace and defense sector of the U.S. equity market.Boeing, United Technologies and Lockheed Martin are the top three holdings of the fund. It charges 44 basis points in annual fees (see all Industrials ETFs here).

Why the Move?

The latest earnings performance has been quite impressive for Aerospace and Defense companies, with major players beating market estimates. Boeing Company, United Technologies, Northrop Grumman, General Dynamics and Lockheed Martin Corporation beat earnings estimates. However, the revenue performance was a mixed bag. Rising geopolitical risks and higher commercial demand are giving a boost to defense companies.

More Gains Ahead?

Currently, ITA has a Zacks ETF Rank #2 (Buy) with a moderate risk outlook, suggesting that the outperformance could continue in the months ahead.

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