Invesco Dorsey Wright Consumer Cyclicals Momentum ETF

PEZ

Market cap $22.9M

Consumer sentiment hits a five-month high in July. XLY, VCR, PEZ and RTH ETFs stand to benefit from the upbeat outlook.

PEZ follows a proprietary strategy to identify at least 30 U.S. Consumer Cyclical stocks with strong intermediate and long-term price momentum. Its expense ratio is 0.60%. The ETF's long-term track record and current fundamentals highly suggest that the momentum factor alone is insufficient for investing in this sector. Though PEZ's components currently have an excellent 24% estimated earnings growth rate, it's also extremely risky based on its beta, P/E, and quality characteristics.

Following on last week's top 10 list, this week's blog focuses on ETFs related to the stocks in the list. For this week, we then screened for ETFs that contained each stock that were also rated 5 (Strong Buy), focusing on the ETF that held the stock in the greatest percentage, then traveling down the lists of ETFs that held it until we found one rated 5. This resulted in a list of Strong Buy 5 rated ETFs that held at least one Strong Buy 5 rated stock as a major holding.

Wall Street was upbeat last week on Fed rate cut hopes.

To date, 145 of the 199 companies in our Retail/Restaurant Index have reported their EPS results for Q2 2024, representing 73% of the index. The blended revenue growth estimate for the 199 companies in this index is 3.5% for Q2 2024. Home Depot reported better-than-expected Q2 earnings and revenue.

Wall Street is ending the fourth quarter on a sweet note. After a Downbeat October 2023, stocks surged in November and December on the hopes of Fed rate cuts in 2024.

All three major indices wrapped up their eighth consecutive weekly advance. We have highlighted the best ETFs, each from the top five segments of the fourth quarter.

Wall Street has been on a stellar ride, with all three major indices on track to wrap up their best monthly performance of 2023.

Let's delve into some of the best ETF charts of Q3 earnings.