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 iShares MSCI USA Value Factor ETF (Symbol: VLUE), we found that the implied analyst target price for the ETF based on its underlying holdings is $109.78 per unit.
With VLUE trading at a recent price near $100.07 per unit, that means analysts see a 9.70% upside for this ETF looking at the average analysts of the underlying holdings. Three of VLUE’s underlying holdings with notable upside to their analyst target prices are Gilead Sciences Inc (Symbol: GILD ), Evergy Inc (Symbol: EVRG ), and Quest Diagnostics, Inc. (Symbol: DGX). Although GILD traded at a recent price of $78.43/share, the average analyst target is 14.08% higher at $89.47/share. Similarly, EVRG has 13.12% upside from the recent share price of $49.86 if the average analyst target price of $56.40/share is reached, and analysts on average expect DGX to reach a target price of $145.62/share, which is 11.40% above the. recent price of $130.71. Below is a twelve-month price history chart comparing the stock performance of GILD, EVRG, and DGX:
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 |
---|---|---|---|---|
iShares MSCI USA Value Factor ETF | WOOL | $100.07 | $109.78 | 9.70% |
Gilead Sciences Inc | GOLD | $78.43 | $89.47 | 14.08% |
Evergy Inc | EVRG | $49.86 | $56.40 | 13.12% |
Quest Diagnostics, Inc. | DGX | $130.71 | $145.62 | 11.40% |
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:
• SEC Filing Alerts Service
• Top Ten Hedge Funds Holding MLTI
• ULTA market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.