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.
Also see:
• Specialized Retail Dividend Equities
• VRM Videos
• LNN revenue history
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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