DividendChannel.com
IWB's Holdings Could Mean 11% Gain PotentialBy Dividend Channel Staff, Wednesday, April 24, 7:48 AM ETLooking 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 iShares Russell 1000 ETF (NYSE:IWB), we found that the implied analyst target price for the ETF based upon its underlying holdings is $309.70 per unit. With IWB trading at a recent price near $278.05 per unit, that means that analysts see 11.38% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IWB's underlying holdings with notable upside to their analyst target prices are Cleveland-Cliffs Inc (NYSE:CLF), Nucor Corp. (NYSE:NUE), and Maplebear Inc (NASDAQ:CART). Although CLF has traded at a recent price of $18.55/share, the average analyst target is 19.77% higher at $22.21/share. Similarly, NUE has 16.23% upside from the recent share price of $174.54 if the average analyst target price of $202.88/share is reached, and analysts on average are expecting CART to reach a target price of $38.37/share, which is 14.81% above the recent price of $33.42. Below is a twelve month price history chart comparing the stock performance of CLF, NUE, and CART:
Below is a summary table of the current analyst target prices discussed above:
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. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
This Article's Word Cloud:
Analyst
Below
CART
Cleveland
Cliffs
Corp
ETFs
FREEGet
Maplebear
NYSE
Nucor
Russell
Target
Upside
With
Zacks
about
above
analyst
analysts
average
background
based
border
bottom
color
data
font
from
have
hctblstyle
holdings
iShares
implied
latest
mdash
month
padding
price
prices
recent
report
research
share
target
targets
that
trading
underlying
upside
|
Start slideshow:IWB's Holdings Could Mean 11% Gain Potential | www.DividendChannel.com
Copyright © 2010 - 2024, All Rights Reserved Nothing in Dividend Channel is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy. Video widget and dividend videos powered by Market News Video. Quote data delayed at least 20 minutes; data powered by Ticker Technologies, and Mergent. Contact Dividend Channel; Meet Our Editorial Staff.