For investors seeking momentum, the State Street SPDR S&P Health Care Services ETF (XHS Quick QuoteXHS - Free Report) is probably on the radar now. The fund just hit a 52-week high and jumped 31.9% from its 52-week low price of $87.64 per share.

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

XHS in Focus

This fund provides exposure to large, mid, and small-cap stocks from the following subindustries: Health Care Distributors, Health Care Facilities, Health Care Services, and Managed Health Care. The product charges 35 basis points (bps) in annual fees (See: All Health Care ETFs here).

What Led to the Rise?

The fund recently hit a 52-week high, driven by powerful tailwinds in the healthcare-services sector. Notably, stable corporate earnings, defensive rotation by investors seeking reliable cash flows amid broader market volatility, and the post-pandemic normalization of medical utilization rates have significantly boosted margins across major healthcare services companies.

More Gains Ahead?

XHS may continue its strong performance in the near term, with a positive weighted alpha of 21.32 (as per Barchart.com), which suggests a further rally.