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Airline ETF (JETS) Hits New 52-Week High

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For investors seeking momentum, U.S. Global Jets ETF (JETS - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 63% from its 52-week low of $16.48 per share. 

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:

JETS in Focus

U.S. Global Jets ETF provides exposure to the global airline industry, including airline operators and manufacturers from all over the world. It charges 60 bps in annual fees (see: all the Industrials ETFs here).

Why the Move?

The airline industry has been an area to watch lately, given solid earnings reports from major air carriers. Both Delta Airlines (DAL) and United Airlines (UAL) topped the Zacks Consensus Estimates on the earnings and revenue front and offered an upbeat outlook for the ongoing quarter and the full fiscal year. This indicates robust travel demand and improved pricing power.

More Gains Ahead?

Currently, JETS has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, JETS might remain strong, given its weighted alpha of 48.33 and a lower 20-day volatility of 64.87%. There is definitely still some promise for investors who want to ride on this surging ETF.


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