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SmallCap Consumer Staples ETF (PSCC) Hits New 52-Week High

Sanghamitra Saha
NantHealth, Inc. (NH) delivered earnings and revenue surprises of 23.08% and -10.83%, respectively, for the quarter ended September 2018. Do the numbers hold clues to what lies ahead for the stock?

For investors seeking momentum, Invesco S&P SmallCap Consumer Staples ETF PSCC is probably on the radar now. The fund just hit a 52-week high and is up nearly 22.9% from its 52-week low price of $64.11/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.

PSCC in Focus       

The fund follows the performance of the S&P SmallCap 600 Capped Consumer Staples Index. The fund holds 20 stocks in total. Darling Ingredients, Darling Ingredients, and WD-40 Co are the top three stocks of the fund. Food Products (44.52%), Household Products (15.5%) and Food and Staples Retailing (14.07%) are the top three industries of the fund. The product charges 29 bps in fees (see all Consumer Staples ETFs here).

Why the Move?   

The Consumer Staples sector is less ruffled by economic fluctuations due to its non-cyclical nature. And, small-cap stocks are more domestically-focused and thus not exposed to geopolitical risks and negative currency translations. Both criteria enabled the fund to cash in on an improving U.S. economy while dodging tensions stemming from trade war and a rising dollar.

More Gains Ahead? 

The fund has a Zacks ETF Rank #3 (Hold). However, it seems that the fund will perform decently in the near term given a positive weighted alpha of 19.60.

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PWRSH-SP SC C S (PSCC): ETF Research Reports
 
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