For investors seeking momentum, the Horizon Kinetics Medical ETF MEDX is probably on the radar now. The fund just hit a 52-week high and is up 49.9% from its 52-week low price of $23.46 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.
MEDX in Focus
The fund provides exposure to patented first-line pharmaceuticals and biologics companies. The fund charges 85 basis points (bps) in annual fees (See: all Healthcare ETFs here).
What Led to the Rise?
Strong performance of the healthcare sector, specifically in specialized pharmaceutical and biotech areas, must have led MEDX to touch a new 52-week high now. Additionally, the fund’s concentrated focus on "patented first-line" pharmaceuticals is likely to have paid off, particularly through its double-digit weighting in Eli Lilly, which currently dominates the GLP-1 market.
More Gains Ahead?
MEDX may continue its strong performance in the near term, with a positive weighted alpha of 28.43 (as per Barchart.com), which suggests a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
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