(FCOM) Fidelity MSCI - Ratings and Ratios

The Fidelity® MSCI Communication Services Index ETF (FCOM) is an exchange-traded fund that tracks the MSCI USA IMI Communication Services 25/50 Index, providing investors with exposure to the U.S. communication services sector. By investing at least 80% of its assets in securities included in the underlying index, FCOM offers a diversified portfolio of companies operating in this sector, although it may not hold every security in the index.

As a non-diversified fund, FCOMs investment strategy is focused on replicating the performance of its underlying index, which comprises a broad range of communication services companies, including those involved in telecommunications, media, and entertainment. This sector has experienced significant growth in recent years, driven by the increasing demand for digital services and the proliferation of streaming media.

From a technical analysis perspective, FCOMs price action indicates a bullish trend, with the funds last price of $61.61 exceeding its 20-day simple moving average (SMA) of $60.91 and its 50-day SMA of $57.41. The 200-day SMA at $57.67 also suggests a long-term uptrend. The average true range (ATR) of 0.88, equivalent to 1.43%, indicates moderate volatility.

Considering the funds assets under management (AUM) of $1.553 billion, FCOM has a substantial presence in the market, which can contribute to liquidity and reduce trading costs. By combining the technical and fundamental data, a forecast for FCOM can be made: given the bullish trend and the growth prospects of the communication services sector, FCOM is likely to continue its upward trajectory, potentially reaching $65 in the near term, representing a 5.5% increase from its current price.

However, its essential to monitor the funds performance and adjust the forecast accordingly, as the communication services sector is subject to various risks, including regulatory changes, intense competition, and technological disruptions. A thorough analysis of the funds holdings and the overall market conditions is necessary to make informed investment decisions.