For investors seeking momentum, First Trust Industrials/Producer Durables AlphaDEX ETF (FXR Quick QuoteFXR - Free Report) is probably on radar. The fund just hit a 52-week high and is up 30.5% from its 52-week low price of $45.25/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 of where it might be headed:

FXR in Focus

The underlying StrataQuant Industrials Index is a modified equal-dollar weighted index designed by the AMEX to objectively identify and select stocks from the Russell 1000 Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology. It charges 61 basis points in annual fees (see: all the Industrials ETFs here).

Why the Move?

The industrial segment of the broad market has been an area to watch lately as business conditions remain good, and demand seems decent. Though the first half of 2023 seems to be stressful for the industrial activities due to high inflation and supply-chain difficulties, manufacturing companies indicated that the business sentiment is positive for the second half of the year. Rising automation would also favor the activities in the space.

More Gains Ahead?

Currently, FXR has a Zacks ETF Rank #2 (Buy) with a medium risk outlook.