ProShares UltraPro Short Communication Services Select Sector (SCOM) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
ProShares UltraPro Short Communication Services Select Sector (SCOM) trades at $24.88. ProShares UltraPro Short Communication Services Select Sector seeks to deliver three times the inverse of the daily performance of the S&P Communication Services Select Sector Index. Sector: Unknown.
Price as of Jul 20, 2026 · Last analyzed: Mar 16, 2026Analyst Coverage for SCOM: SCOM does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates SCOM against Unknown peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
SCOM: 1/2 scored disciplines lean bearish. Dominant signal: Ray Dalio bullish.
How is this calculated? →ProShares UltraPro Short Communication Services Select Sector (SCOM) Business Overview & Investment Profile
ProShares UltraPro Short Communication Services Select Sector (SCOM) is a non-diversified fund aiming for three times the inverse daily return of the S&P Communication Services Select Sector Index, employing derivatives and money market instruments. It focuses its investments within the communication services sector of the S&P 500.
What Is the Investment Thesis for SCOM?
SCOM offers a tactical tool for investors seeking to profit from short-term declines in the communication services sector. The fund's leveraged inverse exposure can amplify returns when the sector underperforms. However, the use of leverage also magnifies potential losses, making it suitable only for sophisticated investors with a high-risk tolerance and a short-term investment horizon. The fund's daily reset feature can lead to significant tracking error over longer periods, particularly in volatile markets. Investors should carefully monitor the index's performance and the fund's daily returns to manage risk effectively. The beta of 1.00 indicates that the fund's volatility is similar to that of the market.
Based on FMP financials and quantitative analysis
SCOM Key Highlights
- Seeks to provide three times the inverse (-3x) of the daily performance of the S&P Communication Services Select Sector Index.
- Utilizes derivatives and money market instruments to achieve its investment objective.
- Concentrates its investments in the communication services sector, mirroring the index's composition.
- Classified as a non-diversified fund, increasing its sensitivity to sector-specific movements.
- Beta of 1.00 indicates market-level volatility.
Who Are SCOM's Competitors?
What Are SCOM's Key Strengths?
- Leveraged inverse exposure provides potential for high returns in declining markets.
- Established brand recognition as part of the ProShares ETF family.
- Offers a tactical tool for short-term trading strategies.
- Concentrated exposure to the communication services sector.
What Are SCOM's Weaknesses?
- High-risk due to leverage and inverse exposure.
- Daily reset feature can lead to tracking error over longer periods.
- Suitable only for sophisticated investors.
- Concentration in a single sector increases volatility.
What Could Drive SCOM Stock Higher?
- Earnings releases and financial performance of major companies within the S&P Communication Services Select Sector Index can significantly impact the fund's performance.
- Regulatory changes affecting the communication services sector or the use of leveraged ETFs could influence investor sentiment and trading activity.
- Technological advancements and disruptions within the communication services sector can create volatility and trading opportunities for SCOM.
What Are the Key Risks for SCOM?
- Significant losses due to the leveraged inverse exposure, especially in a rising market.
- Tracking error over longer periods due to the daily reset feature.
- Changes in interest rates impacting the cost of borrowing for derivative positions.
- High volatility associated with the communication services sector.
- Regulatory scrutiny of leveraged and inverse ETFs.
What Are the Growth Opportunities for SCOM?
- Increased Volatility in Communication Services Sector: Market volatility within the communication services sector could lead to increased trading activity and demand for SCOM as investors seek to capitalize on short-term declines. Geopolitical events, regulatory changes, or unexpected shifts in consumer behavior could trigger such volatility. The timeline for this growth opportunity is event-driven and difficult to predict, but increased market uncertainty could drive demand for inverse ETFs like SCOM.
- Growing Sophistication of Retail Investors: As retail investors become more sophisticated and seek to implement complex trading strategies, demand for leveraged and inverse ETFs may increase. SCOM could benefit from this trend as investors use it to hedge their portfolios or speculate on short-term market movements. This growth opportunity is dependent on the continued education and empowerment of retail investors, with a potential timeline of 2-5 years.
- Expansion of ETF Trading Platforms: The proliferation of online brokerage platforms and the increasing accessibility of ETF trading could drive demand for SCOM. As more investors gain access to these platforms, they may be more likely to experiment with leveraged and inverse ETFs as part of their investment strategies. This growth opportunity is tied to the continued expansion and innovation of the online brokerage industry, with a potential timeline of 1-3 years.
- Strategic Use by Institutional Investors: Institutional investors may use SCOM as a tactical tool to hedge their exposure to the communication services sector or to generate alpha through short-term trading strategies. Increased adoption by institutional investors could drive significant trading volume and assets under management for SCOM. This growth opportunity is dependent on the fund's ability to demonstrate its effectiveness as a hedging and trading tool, with a potential timeline of 3-5 years.
- Product Innovation in Leveraged and Inverse ETFs: Continued innovation in the ETF industry could lead to the development of new and more sophisticated leveraged and inverse products. SCOM could benefit from this trend by expanding its product offerings or by attracting investors who are seeking more specialized investment strategies. This growth opportunity is dependent on the fund's ability to adapt to changing market conditions and investor preferences, with an ongoing timeline.
What Opportunities Does SCOM Have?
- Increased volatility in the communication services sector.
- Growing sophistication of retail investors.
- Expansion of ETF trading platforms.
- Strategic use by institutional investors.
What Threats Does SCOM Face?
- Potential for significant losses due to leverage and inverse exposure.
- Changes in regulatory environment impacting leveraged ETFs.
- Competition from other leveraged and inverse ETFs.
- Unexpected shifts in the communication services sector.
What Are SCOM's Competitive Advantages?
- Established brand recognition as part of the ProShares ETF family.
- Leveraged and inverse exposure provides a unique offering in the ETF market.
- Proprietary trading strategies for managing derivative positions.
- Deep understanding of the communication services sector and its dynamics.
What Does SCOM Do?
ProShares UltraPro Short Communication Services Select Sector (SCOM) is designed to provide investors with a leveraged inverse exposure to the communication services sector. The fund seeks daily investment results, before fees and expenses, that correspond to three times the inverse (-3x) of the daily performance of the S&P Communication Services Select Sector Index. This index represents the communication services industry group within the broader S&P 500 Index. The fund achieves its investment objective primarily through the use of financial instruments such as derivatives and money market instruments. Derivatives, including swaps, futures contracts, and options, allow the fund to gain leveraged exposure to the index without directly holding the underlying stocks. Money market instruments provide liquidity and serve as collateral for the derivative positions. SCOM is classified as a non-diversified fund, meaning it can concentrate its investments in a particular industry or group of industries to approximately the same extent as the index it tracks. This concentration increases the fund's sensitivity to fluctuations in the communication services sector.
What Products and Services Does SCOM Offer?
- Seeks daily investment results that correspond to three times the inverse of the daily performance of the S&P Communication Services Select Sector Index.
- Invests primarily in derivatives, such as swaps, futures contracts, and options.
- Utilizes money market instruments for liquidity and collateral purposes.
- Concentrates its investments in the communication services sector.
- Offers a leveraged inverse exposure to the communication services sector.
- Resets daily, which can lead to tracking error over longer periods.
How Does SCOM Make Money?
- Generates revenue through management fees charged on assets under management (AUM).
- Profits from trading activities related to the fund's derivative positions.
- Aims to provide leveraged inverse exposure to the S&P Communication Services Select Sector Index.
- Attracts investors seeking short-term trading opportunities in the communication services sector.
What Industry Does SCOM Operate In?
SCOM operates within the exchange-traded fund (ETF) industry, specifically focusing on leveraged and inverse products. The communication services sector, which SCOM targets, includes companies involved in telecommunications, media, and entertainment. This sector is influenced by factors such as technological advancements, regulatory changes, and consumer preferences. The ETF market has experienced significant growth in recent years, driven by increasing investor demand for low-cost, passively managed investment vehicles. However, leveraged and inverse ETFs like SCOM carry additional risks due to their use of derivatives and daily reset mechanisms.
Who Are SCOM's Key Customers?
- Sophisticated investors with a high-risk tolerance.
- Traders seeking to profit from short-term declines in the communication services sector.
- Institutional investors using SCOM as a hedging tool.
- Retail investors implementing complex trading strategies.
Net buyingInsider Activity
The most recent 12 insider filings for ProShares UltraPro Short Communication Services Select Sector break down as 1 sales and 11 purchases. On net that is roughly 163K shares acquired (about $257K) — insiders putting money in tends to read as conviction.
SCOM Financials
Bull Case vs Bear Case
Bull Case
- Recent insider buying could signal management believes the stock is undervalued in the short term.
- The fund's inverse nature means it benefits from a decline in communication services, which some see as overvalued.
- Increased bearish sentiment in the broader market could drive more investors to short communication services.
- The communication sector faces regulatory headwinds, potentially creating downward pressure on related stocks.
Bear Case
- Insider activity is not always indicative of future performance, and could be unrelated to the company's prospects.
- The communication services sector could experience unexpected growth, hurting the fund's performance.
- Bullish sentiment in the broader market could reduce the demand for short positions in communication services.
- The communication sector is innovative and resilient, with potential for strong long-term growth.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
SCOM Latest News
No recent news available for SCOM.
SCOM Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SCOM.
Price Targets
Wall Street price target analysis for SCOM.
SCOM MoonshotScore
What does this score mean?
The MoonshotScore rates SCOM 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Classification
Industry UnknownSCOM Unknown Stock FAQ
What does ProShares UltraPro Short Communication Services Select Sector do?
ProShares UltraPro Short Communication Services Select Sector (SCOM) is an exchange-traded fund (ETF) designed to deliver three times the inverse of the daily performance of the S&P Communication Services Select Sector Index. This means that the fund aims to generate gains when the communication services sector, as represented by the index, declines in value.
What are the main risks for SCOM?
The main risks for SCOM include the potential for significant losses due to its leveraged inverse exposure. If the communication services sector rises in value, the fund is likely to decline, and the leverage can magnify these losses. The daily reset feature can also lead to tracking error over longer periods, particularly in volatile markets.
What are the key factors to evaluate for SCOM?
Evaluate SCOM on fundamentals, analyst consensus, and risk factors. Not financial advice.
How frequently does SCOM data refresh on this page?
SCOM's price was last updated on Jul 20, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven SCOM's recent stock price performance?
ProShares UltraPro Short Communication Services Select Sector (SCOM) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Leveraged inverse exposure provides potential for high returns in declining markets. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider SCOM overvalued or undervalued right now?
ProShares UltraPro Short Communication Services Select Sector (SCOM) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research SCOM before investing?
Before investing in ProShares UltraPro Short Communication Services Select Sector (SCOM), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Why might investors consider adding SCOM to a portfolio?
Key strength of ProShares UltraPro Short Communication Services Select Sector (SCOM): Leveraged inverse exposure provides potential for high returns in declining markets. Weigh rewards against risks and diversify. Not financial advice.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending for SCOM, limiting the depth of available insights.
- The information provided is based on publicly available data and may be subject to change.