Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard S&P 500 ETF, we found that the implied analyst target price for the ETF based upon its underlying holdings is $272.31 per unit.
— TRENDING NOW—
$330,000 per year trading part-time?
Check Out This Video to Learn Jason’s 3 Simple Trading Patterns
With VOO trading at a recent price near $247.15 per unit, that means that analysts see 10.18% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of VOO’s underlying holdings with notable upside to their analyst target prices are Northern Trust, Allstate , and PNC Financial Services Group. Although NTRS has traded at a recent price of $102.30/share, the average analyst target is 10.95% higher at $113.50/share. Similarly, ALL has 10.55% upside from the recent share price of $94.24 if the average analyst target price of $104.18/share is reached, and analysts on average are expecting PNC to reach a target price of $155.89/share, which is 10.37% above the recent price of $141.25.
Below is a summary table of the current analyst target prices discussed above:
| Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|---|
| Vanguard S&P 500 ETF | VOO | $247.15 | $272.31 | 10.18% |
| Northern Trust Corp | NTRS | $102.30 | $113.50 | 10.95% |
| Allstate Corp | ALL | $94.24 | $104.18 | 10.55% |
| PNC Financial Services Group | PNC | $141.25 | $155.89 | 10.37% |
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, 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 target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
— TRENDING NOW—
FREE STOCK TRADING WEBINAR
Experienced Biotech stock investor, Kyle Dennis, will be showing you 3 easy-to-follow steps that you’re going to want in your playbook & he’s got the numbers to prove it!
Join this free webinar today!
Source: forbes.com | Original Link