Looking at the underlying holdings of the ETFs in our coverage universe at &l;a href=&q;https://www.etfchannel.com/&q; target=&q;_blank&q;&g;ETF Channel&l;/a&g;, 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.&a;nbsp; For the iShares Core Dividend Growth ETF, we found that the implied analyst target price for the ETF based upon its underlying holdings is $39.50 per unit.
With DGRO trading at a recent price near $35.25 per unit, that means that analysts see 12.04% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of DGRO&s;s underlying holdings with notable upside to their analyst target prices are Core Mark Holding, Advanced Drainage Systems and Simpson Manufacturing. Although CORE has traded at a recent price of $27.88/share, the average analyst target is 15.97% higher at $32.33/share. Similarly, WMS has 14.71% upside from the recent share price of $25.50 if the average analyst target price of $29.25/share is reached, and analysts on average are expecting SSD to reach a target price of $69.00/share, which is 12.41% above the recent price of $61.38.
Below is a summary table of the current analyst target prices discussed above:
&l;/p&g;&l;div class=&q;table-wrapper&q;&g;&l;table class=&q;hctblstyle&q; border=&q;0&q; cellspacing=&q;0&q; cellpadding=&q;0&q;&g;&l;tbody&g;&l;tr&g;&l;th&g;Name&l;/th&g; &l;th align=&q;center&q;&g;Symbol&l;/th&g; &l;th align=&q;right&q;&g;Recent Price&l;/th&g; &l;th align=&q;right&q;&g;Avg. Analyst 12-Mo. Target&l;/th&g; &l;th align=&q;right&q;&g;% Upside to Target&l;/th&g; &l;/tr&g;&l;tr&g;&l;td&g;&l;b&g;iShares Core Dividend Growth ETF&l;/b&g;&l;/td&g; &l;td align=&q;center&q;&g;&l;b&g;DGRO&l;/b&g;&l;/td&g; &l;td align=&q;right&q;&g;&l;b&g;$35.25&l;/b&g;&l;/td&g; &l;td align=&q;right&q;&g;&l;b&g;$39.50&l;/b&g;&l;/td&g; &l;td align=&q;right&q;&g;&l;b&g;12.04%&l;/b&g;&l;/td&g; &l;/tr&g;&l;tr&g;&l;td&g;Core Mark Holding Co Inc&l;/td&g; &l;td align=&q;center&q;&g;CORE&l;/td&g; &l;td align=&q;right&q;&g;$27.88&l;/td&g; &l;td align=&q;right&q;&g;$32.33&l;/td&g; &l;td align=&q;right&q;&g;15.97%&l;/td&g; &l;/tr&g;&l;tr&g;&l;td&g;Advanced Drainage Systems Inc&l;/td&g; &l;td align=&q;center&q;&g;WMS&l;/td&g; &l;td align=&q;right&q;&g;$25.50&l;/td&g; &l;td align=&q;right&q;&g;$29.25&l;/td&g; &l;td align=&q;right&q;&g;14.71%&l;/td&g; &l;/tr&g;&l;tr&g;&l;td&g;Simpson Manufacturing Co., Inc.&l;/td&g; &l;td align=&q;center&q;&g;SSD&l;/td&g; &l;td align=&q;right&q;&g;$61.38&l;/td&g; &l;td align=&q;right&q;&g;$69.00&l;/td&g; &l;td align=&q;right&q;&g;12.41%&l;/td&g; &l;/tr&g;&l;/tbody&g;&l;/table&g;&l;/div&g;
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;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.
&l;a href=&q;http://www.etfchannel.com/slideshows/ten-etfs-with-most-upside/&q; target=&q;_blank&q;&g;Click here to find out 10 ETFs With Most Upside To Analyst Targets &a;raquo;&l;/a&g;
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