Trying on the underlying holdings of the ETFs in our protection universe at ETF Channel, we’ve in contrast the buying and selling worth of every holding in opposition to the common analyst 12-month ahead goal worth, and computed the weighted common implied analyst goal worth for the ETF itself. For the Vanguard Mega Cap ETF (Image: MGC), we discovered that the implied analyst goal worth for the ETF based mostly upon its underlying holdings is $156.57 per unit.
With MGC buying and selling at a latest worth close to $141.26 per unit, that implies that analysts see 10.84% upside for this ETF wanting by to the common analyst targets of the underlying holdings. Three of MGC’s underlying holdings with notable upside to their analyst goal costs are Ford Motor Co. (Image: F), Greenback Normal Corp (Image: DG), and Costco Wholesale Corp (Image: COST). Though F has traded at a latest worth of $12.73/share, the common analyst goal is 17.52% larger at $14.96/share. Equally, DG has 15.03% upside from the latest share worth of $229.59 if the common analyst goal worth of $264.10/share is reached, and analysts on common expect COST to succeed in a goal worth of $558.83/share, which is 11.77% above the latest worth of $499.99. Beneath is a twelve month worth historical past chart evaluating the inventory efficiency of F, DG, and COST:
Beneath is a abstract desk of the present analyst goal costs mentioned above:
|Identify||Image||Latest Value||Avg. Analyst 12-Mo. Goal||% Upside to Goal|
|Vanguard Mega Cap ETF||MGC||$141.26||$156.57||10.84%|
|Ford Motor Co.||F||$12.73||$14.96||17.52%|
|Greenback Normal Corp||DG||$229.59||$264.10||15.03%|
|Costco Wholesale Corp||COST||$499.99||$558.83||11.77%|
Are analysts justified in these targets, or overly optimistic about the place these shares will likely be buying and selling 12 months from now? Do the analysts have a sound justification for his or her targets, or are they behind the curve on latest firm and business developments? A excessive worth goal relative to a inventory’s buying and selling worth can replicate optimism concerning the future, however may also be a precursor to focus on worth downgrades if the targets have been a relic of the previous. These are questions that require additional investor analysis.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.