(GRPM) Invesco S&P MidCap 400 GARP - Ratings and Ratios

The Invesco S&P MidCap400 GARP ETF is an exchange-traded fund that tracks the performance of high-quality growth stocks within the S&P MidCap400 Index, focusing on companies with a balance of growth and value characteristics.

The funds underlying index is constructed using a rules-based methodology that identifies the top 60 growth stocks in the S&P MidCap400 Index, with a bias towards companies exhibiting relatively high quality and value composite scores. This approach aims to capture the growth potential of mid-cap stocks while mitigating potential downside risks associated with overvalued or low-quality companies.

By investing at least 90% of its assets in the securities comprising the underlying index, the fund provides investors with a diversified portfolio of mid-cap growth stocks that are expected to outperform the broader market. The S&P MidCap400 Index is a widely recognized benchmark for mid-cap stocks in the US equity market, and the funds GARP (Growth at a Reasonable Price) strategy is designed to identify companies with strong growth prospects at reasonable valuations.

Analyzing the funds recent price action, we observe that the current price of $104.04 is above its 20-day and 50-day simple moving averages (SMA20: $100.14, SMA50: $101.93), indicating a short-term uptrend. However, the price remains below its 200-day simple moving average (SMA200: $112.13), suggesting that the long-term trend is still uncertain. The average true range (ATR: 3.45) indicates moderate volatility, which is expected in the mid-cap segment.

Considering the funds assets under management (AUM: $452.50M) and its investment strategy, we can forecast that the Invesco S&P MidCap400 GARP ETF will likely continue to attract investors seeking exposure to mid-cap growth stocks with a balance of quality and value characteristics. Based on the technical data, we expect the funds price to face resistance around the 52-week high ($125.69) and support around the 52-week low ($90.38). Assuming the current uptrend continues, we forecast a potential price target of $115-$120 in the near term, driven by the funds underlying index and overall market conditions.