Analysts predict 11% gains for USLB holdings

Looking 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 Russell 1000 Equal Weight Low Beta ETF (ticker: USLB), we found that the implied analyst target price for the ETF, based on its underlying holdings, is $42.44 per unit.

With USLB trading at a recent price close to $38.30 per share, this means analysts see 10.79% upside potential for this ETF when looking at the average analyst targets of the underlying holdings. Three of USLB’s underlying holdings with a notable advantage over their analyst target prices are OneMain Holdings Inc (Symbol: OMF), PENN Entertainment Inc (Symbol: PENN) and IPG Photonics Corp (Symbol: IPGP). Although OMF traded at a recent price of $36.79/share, the average analyst target is 30.02% higher at $47.83/share. Similarly, PENN is up 28.33% from the recent share price of $36.18 if the average analyst target price of $46.43/share is reached, and analysts expect average for the IPGP to reach a target price of $115.33/share, 26.43% above the recent price of $91.22. Below is a 12 month price history chart comparing the stock performance of OMF, PENN and IPGP:

Below is a table summarizing the current target prices of the analysts mentioned above:

Last name Symbol Recent Price Avg. 12-MB Analyst. Target % increase over target
Invesco Russell 1000 Equal Weight Low Beta ETF USLB $38.30 $42.44 10.79%
OneMain Holdings Inc OMF $36.79 $47.83 30.02%
PENN Entertainment Inc PENN $36.18 $46.43 28.33%
IPG Photonics Corp. IPGP $91.22 $115.33 26.43%

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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Also see:

• Alphabetical list of all hedge funds
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• Top ten hedge funds holding SOJD

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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