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Aerospace and Defense ETF (ITA) Hits New 52-Week High

Zacks Equity Research
Ranger Energy Services, Inc. (RNGR) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

Investors seeking momentum may have iShares U.S. Aerospace & Defense ETF ITA on radar now. The fund recently hit a new 52-week high. Shares of ITA are up approximately 46.2% from the 52-week low of $124.7/share.


But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.


ITA in Focus


ITA focuses on providing exposure to the Aerospace and Defense companies in the U.S. equity market. It charges 44 basis points in fee per year and has top holdings in Boeing BA, United Technologies Corp UTX and Lockheed Martin Corp LMT with 10.2%, 7.9% and 7.4% allocation, respectively (as of Oct 6, 2017) (see all Industrials ETFs here).


Why the Move?


Lately, the defense sector has been in the spotlight. Following a latest report by Russian news agency RIA, a Russian lawmaker’s recent visit to Pyongyang has revealed that North Koreans are prepping another long-range missile test. This missile can supposedly reach the west coast of the United States. Therefore, geopolitical risks are at play again. Moreover, the earnings season has also been quite impressive for companies in this sector.


More Gains Ahead?


Currently, ITA has a Zacks ETF Rank #1 (Strong Buy) with a Medium Risk outlook. Moreover, the ETF has a weighted alpha of 44.4. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.


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Boeing Company (The) (BA) : Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
United Technologies Corporation (UTX) : Free Stock Analysis Report
 
ISHARS-US AEROS (ITA): ETF Research Reports
 
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