Shares of ETF provider WisdomTree Investments (NasdaqGM: WETF) are trying to break out of the range they’ve been stuck in since June as the firm prepares to report third-quarter results later this month.
The stock is also testing its 200-day moving average, which has acted as technical resistance during the back half of 2012. WETF gained 2% on Thursday morning.
WisdomTree is expected to report third-quarter earnings on Oct. 24, according to Zacks Equity Research, which is forecasting profit of 3 cents a share.
Zacks rates WisdomTree shares a strong buy. “Better-than-expected second quarter earnings and decent ETF assets position are the primary rank drivers for this stock,” Zacks says.
WisdomTree shares have delivered a total return of 14.2% year to date, according to Morningstar. [New WisdomTree Dividend ETF Targets China]
In July, the company reported net income of $0.1 million, down from $0.7 million in the year-ago period and $1.1 million for the first quarter of 2012.
“WisdomTree gathered $338 million predominantly in our dividend based equity strategies in a difficult market environment where, at an industry level, net inflows were almost entirely concentrated in domestic fixed income,” WisdomTree CEO Jonathan Steinberg said in the second-quarter earnings release. “While this market cycle was challenging for our product set, our ability to buck the trend in equities demonstrates our strategies are differentiated and desirable.”
In June, WisdomTree celebrated its sixth anniversary in the ETF business. At the end of the second quarter, its ETF assets under management totaled $15 billion.