For investors seeking momentum, iShares US Home Construction ETF (ITB Quick QuoteITB - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 56% from its 52-week low price of $25.16/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:

ITB in Focus

This fund looks to track the performance of the construction sector of the U.S. equity market. The fund is tilted toward the homebuilding sector with about 67% exposure, followed by building Products (14%). D R Horton, Lennar and NVR Inc are the top three stocks of the fund. The net expense ratio of the fund is 0.44% (see all Industrials ETFs here).

Why the Move?

After losing momentum in August, new home sales in the United States turned around. Sales of new U.S. single-family homes suddenly grew in September, touching the highest level in about 10 years, and defying economists’ expectations of a 0.9% decline. The percent sales surge was the highest since January 1992, as per CNBC. As a result, the fund gained in the recent session.

More Gains Ahead? 

The fund has a Zacks Rank #2 (Buy). It seems that this fund might stay strong given a positive weighted alpha of 53.60. As a result, there is still some promise for investors who want to ride on this surging ETF.

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