Underlying holdings of EPS imply 14% upside potential

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 WisdomTree US LargeCap Fund ETF (ticker: EPS), we found that the analysts’ implied target price for the ETF based on its underlying holdings is $48.17 per unit.

With EPS trading at a recent price near $42.37 per share, that means analysts see 13.69% upside potential for this ETF when looking at the average analyst targets of the underlying holdings. Splunk Inc (ticker: SPLK), UDR Inc (ticker: UDR) and Teledyne Technologies Inc (ticker: TDY) are three of EPS’s underlying holdings with a notable advantage over their analyst price targets. Although SPLK traded at a recent price of $83.36/share, the average analyst target is 33.65% higher at $111.41/share. Similarly, UDR is up 20.68% from the recent price of $38.70 if the average analyst target price of $46.70/share is reached, and analysts on average expect TDY hits a target price of $485.40/share, 18.81% above the recent price of $408.54. Below is a 12 month price history chart comparing the stock performance of SPLK, UDR and TDY:

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
WisdomTree US LargeCap Fund ETF PES $42.37 $48.17 13.69%
Splunk Inc. SPLK $83.36 $111.41 33.65%
UDR inc. UDR $38.70 $46.70 20.68%
Teledyne Technologies Inc. JTD $408.54 $485.40 18.81%

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 investor research.

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Also see:

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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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