Add up the coins: XSHD could be worth $25


ILooking at the underlying ETF holdings in our coverage universe on ETF Channel, we compared the trading price of each holding to the 12-month futures analyst average target price, and calculated the weighted average implied analyst target price. for the ETF itself. For the Invesco S&P SmallCap High Dividend Low Volatility ETF (Symbol: XSHD), we found that the analysts’ implied target price for the ETF based on its underlying holdings is $24.96 per share.

With XSHD trading at a recent price close to $22.34 per share, this means analysts see an 11.72% upside potential for this ETF when looking at the average analyst targets of the underlying holdings. Three of XSHD’s underlying holdings with a notable advantage over their analyst target prices are Industrial Logistics Properties Trust (ticker: ILPT), Progress Software Corp (ticker: PRGS) and Pennymac Mortgage Investment Trust (ticker: PMT) . Although the ILPT traded at a recent price of $22.67/share, the average analyst target is 19.98% higher at $27.20/share. Similarly, PRGS is up 18.92% from the recent price of $47.09 if the average analyst target price of $56.00/share is reached, and analysts on average expect PMT hits a target price of $19.42/share, 14.96% above the recent price of $16.89. Below is a 12 month price history chart comparing the stock performance of ILPT, PRGS and PMT:

Together, ILPT, PRGS and PMT represent 5.75% of the Invesco S&P SmallCap High Dividend Low Volatility ETF. Below is a table summarizing the current target prices of the analysts mentioned above:

name symbol Recent Price Avg. 12-MB Analyst. Target % increase over target
Invesco S&P SmallCap High Dividend Low Volatility ETF XSHD $22.34 $24.96 11.72%
Industrial Logistics Property Trust ILPT $22.67 $27.20 19.98%
Progress Software Corp. PRGS $47.09 $56.00 18.92%
Pennymac Mortgage Investment Trust EMP $16.89 $19.42 14.96%

Are analysts justified in these targets, or too optimistic about where these stocks will trade in 12 months? Do the analysts have a valid rationale for their goals, or are they lagging behind recent company and industry developments? A high price target relative to a stock’s price can reflect optimism about the future, but can also be a precursor to target price declines if 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.


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