Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we compared each holding’s trading price against the average analyst 12-month forward target price, and calculated the weighted implied analyst target price for the ETF itself. For the Vanguard Russell 1000 Value ETF (Symbol: VONV), we found that the implied analyst target price for the ETF based on its underlying holdings is $77.75 per unit.
With VONV trading at a recent price near $68.33 per unit, that means analysts see a 13.79% upside for this ETF looking at the average analyst targets of the underlying holdings. Three of VONV’s underlying holdings with notable upside to their analyst target prices are Lumentum Holdings Inc (Symbol: LITE ), Grocery Outlet Holding Corp (Symbol: GO ), and Olaplex Holdings Inc (Symbol: OLPX ). Although LITE traded at a recent price of $42.30/share, the average analyst target is 18.20% higher at $50.00/share. Similarly, GO has 16.63% upside from the recent share price of $28.21 if the average analyst target price of $32.90/share is reached, and analysts on average expect OLPX to reach a target price of $2.46/share, which is 16.27% above the. recent price of $2.12. Below is a twelve month price history chart comparing the stock performance of LITE, GO and OLPX:
Below is a summary table of the current analyst target prices discussed above:
name | Symbol | Recent Price | Avg. Analyst 12-Mo. Purpose | % Up to Target |
---|---|---|---|---|
Vanguard Russell 1000 Value ETF | VONV | $68.33 | $77.75 | 13.79% |
Lumentum Holdings Inc | BED | $42.30 | $50.00 | 18.20% |
Grocery Outlet Holding Corp | go | $28.21 | $32.90 | 16.63% |
Olaplex Holdings Inc | OLPX | $2.12 | $2.46 | 16.27% |
Are analysts justified in these targets, or overly optimistic about where these stocks will trade 12 months from now? Do the analysts have a valid justification for their goals, or are they behind the curve on recent company and industry developments? A high price target relative to a stock’s trading price can reflect optimism about the future, but can also be a precursor to a target price decrease if the targets were a relic of the past. These are questions that require further investment research.
See also:
• Top Ten Hedge Funds Holding ERGF
• EXP Videos
• ETFs Holding MDXG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.