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Media ETF (PBS) Hits New 52-Week High

Sweta Killa
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For investors seeking momentum, Invesco Dynamic Media ETF PBS is probably on radar now. The fund just hit a 52-week high and is up about 23.1% from its 52-week low price of $26.87/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:

PBS in Focus    

PBS provides exposure to media stocks under one roof. It seeks to offer capital appreciation by investing in companies that are selected on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action and value by tracking the Dynamic Media Intellidex Index. It charges investors 63 bps a year in fees (see: all the Consumer Discretionary ETFs here).

Why the Move?

The media corner of the broad consumer discretionary space has been an area to watch lately given the regulatory approval for AT&T’s T $85.4 billion purchase of Time Warner TWX that has paved the way for a merger frenzy, especially in the telecom and media industry. This is especially true as Comcast CMCSA has made a bid worth $65 billion or $35 per share to acquire the film production and studio assets of Twenty-First Century Fox FOXA. The move resulted in a bidding war with The Walt Disney Company DIS, which had struck a deal in November to acquire the same assets for $52.4 billion in an all-stock deal. This led to a surge in the media ETF.

More Gains Ahead?

Currently, PBS has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns in 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 still some promise for those who want to ride on this surging ETF a little further.

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The Walt Disney Company (DIS) : Free Stock Analysis Report
AT&T Inc. (T) : Free Stock Analysis Report
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PWRSH-DYN MEDIA (PBS): ETF Research Reports
Twenty-First Century Fox, Inc. (FOXA) : Free Stock Analysis Report
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