Biotech ETF (CNCR) Hits New 52-Week High and is up nearly 37.4%

By Zacks

For investors seeking momentum, Loncar Cancer Immunotherapy ETF CNCR is probably on the radar now. The fund just hit a 52-week high and is up nearly 37.4% from its 52-week low price of $21.09/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:

CNCR in Focus

This fund provides exposure to companies that develop therapies to treat cancer by harnessing the body's own immune system. Immunotherapy is a transformational field within the biotechnology space that may have a foundational impact on cancer care. CNCR charges 79 bps in fees per year from its investors (see: all the Healthcare ETFs here ).

Why the Move?

The biotech segment of the broad equity market has been an area to watch lately, given encouraging industry fundamentals including mergers and acquisitions, earnings growth, promising drug launches, faster drug approvals, cost-cutting efforts, an aging population and Trump's tax reform. In particular, the new tax legislation enticed companies to bring offshore cash back home, leading to a wave of mergers and acquisitions.

More Gains Ahead?

CNCR has a Zacks ETF Rank #2 (Buy) with a High-risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source: Nasdaq