THEBy examining the underlying holdings of ETFs in our hedge universe on ETF Channel, we compared the trade price of each holding to the 12-month average analyst forward target price, and calculated the weighted average implied target price of analysts. for the ETF itself. For the Invesco S&P 500 – Enhanced Value ETF (ticker: SPVU), we found that the implied analyst target price for the ETF based on its underlying holdings is $ 47.81 per unit.
With SPVU trading at a recent price close to $ 43.51 per unit, that means analysts are seeing a 9.91% rise for this ETF taking into account analysts’ average targets for the underlying holdings. Three of SPVU’s underlying holdings with a notable rise over their analysts’ target prices are Capital One Financial Corp (ticker: COF), Phillips 66 (ticker: PSX) and DISH Network Corp (ticker: DISH). Although COF recently traded at $ 152.50 / share, analysts’ average target is 15.96% higher at $ 176.85 / share. Likewise, PSX is 11.53% higher from the recent share price of $ 77.35 if the average analyst target price of $ 86.27 / share is met, and analysts expect on average for DISH to hit a target price of $ 46.00 / share, which is 11.06% above the recent price of $ 41.42. Below is a 12-month price history chart comparing the performance of COF, PSX and DISH stocks:
Below is a summary table of the analysts’ current target prices discussed above:
|name||symbol||Recent price||Avg. 12-Mo analyst. Target||% increase over target|
|Invesco S&P 500 – Value Enhanced ETF||SPVU||$ 43.51||$ 47.81||9.91%|
|Capital One Financial Corp||COF||$ 152.50||$ 176.85||15.96%|
|Phillips 66||PSX||$ 77.35||$ 86.27||11.53%|
|DISH Network Corp||PLATE||$ 41.42||$ 46.00||11.06%|
Are analysts justified in these goals, or overly optimistic about where these stocks will trade in 12 months? Do analysts have a valid rationale for their goals or are they lagging behind recent business and industry developments? A high price target relative to a stock’s price may reflect optimism about the future, but can also be a harbinger of price declines if the targets were a relic of the past. These are questions that require further research from investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.