Invesco DB Oil ETF DBO is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has surged 104.04% from its 52-week low price of $11.89 per share.
Are more gains in store for this ETF? Let us 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.
DBO in Focus
The underlying DBIQ Optimum Yield Crude Oil Index Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. The product charges 0.73% in annual fees (see: all Energy ETFs here).
Why the Move?
The energy sector has been an area to watch as the escalation of the Middle East conflict, marked by retaliatory strikes between Washington and Tehran, pushed oil prices to multi-week highs. Rising expectations of a prolonged conflict could provide another tailwind for the fund, as continued geopolitical tensions are likely to keep oil prices elevated for longer.
More Gains Ahead?
DBO might continue its strong performance in the near term, with a positive weighted alpha of 79.72 (per Barchart.com), which hints at a rally.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant 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
Invesco DB Oil ETF (DBO): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).