Uranium ETF (URNJ) Hits New 52-Week High
For investors seeking momentum, Sprott Junior Uranium Miners ETF URNJ is probably on the radar. The fund just hit a 52-week high and has moved up 136.55% from its 52-week low price of $11.52 per share.
But are there 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.
URNJ in Focus
The underlying Nasdaq Sprott Junior Uranium Miners Index tracks the performance of companies that derive at least 50% of their revenues and assets from mining, exploration, development and production of uranium; earning uranium royalties and supplying uranium. The product charges 80 bps in annual fees (See: all Materials ETFs here).
Why the Move?
As the demand for AI soars and clean energy needs grow, tech giants are looking at nuclear power to fuel energy-hungry data centers. Data centers are energy-intensive, with AI applications consuming even more energy than traditional computing.
The growing interest in nuclear energy and increasing AI-driven data centers are expected to boost the demand for uranium. Projections of uranium demand growing in the coming years are a key tailwind for the fund.
More Gains Ahead?
URNJ may continue its strong performance in the near term, with a positive weighted alpha of 53.55 (as of Barchart.com), which gives cues of a further rally.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>Want 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
Sprott Junior Uranium Miners ETF (URNJ): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
