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MARKETS LIVE BLOG:

STOCKS CLIMB AS DOW POSTS 8TH STRAIGHT WIN

Fed's Michelle Bowman echoes higher-for-longer mantra for interest rates

Healthcare ETF (VHT) Hits New 52-Week High

Zacks Equity Research
Updated
BancorpSouth (BXS) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Investors seeking momentum may have Vanguard Healthcare ETF VHT on radar now. The fund recently hit a new 52-week high. Shares of VHT are up approximately 29.2% from the 52-week low of $120.38/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.


VHT in Focus


VHT focuses on providing exposure to healthcare stocks in the U.S. equity markets. It charges 10 basis points in fee per year and has top holdings in Johnson & Johnson JNJ, Pfizer PFE and Unitedhealth UNH with 9.6%, 5.9% and 5.2% allocation, respectively (as of Sep 30, 2017) (see all Health Care ETFs here).

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Why the Move?


The earnings season is off to a strong start with companies in the sector beating estimates. In a latest executive order, Trump aimed at scrapping a key component of Obamacare. The President said that he wanted to end subsidies to insurers that cost $7 billion this year and help millions of low-income Americans pay medical expenses. However, the uncertainty was reduced to some extent as news of the two political parties coming to a bipartisan deal started doing the rounds. Senators of both parties said they reached a deal to stabilize Obamacare for the short term and allow insurer subsidies. This in turn led to a rally in healthcare stocks.


More Gains Ahead?


Currently, VHT has a Zacks ETF Rank #2 (Buy) with a Medium Risk outlook. Moreover, the ETF has a weighted alpha of 22.6. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.


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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Pfizer, Inc. (PFE) : Free Stock Analysis Report
 
Johnson & Johnson (JNJ) : Free Stock Analysis Report
 
VIPERS-HLTH CR (VHT): ETF Research Reports
 
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report