VB holdings could represent 24% 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 Vanguard Small-Cap ETF (Symbol: VB), we found that the analysts’ implied target price for the ETF based on its underlying holdings is $223.87 per share.
With VB trading at a recent price close to $179.97 per share, this means analysts see 24.39% upside potential for this ETF when looking at the average analyst targets of the underlying holdings. Three of VB’s underlying holdings with a notable advantage over their analyst target prices are Latham Group Inc (Symbol: SWIM), Coursera Inc (Symbol: COUR) and Alignment Healthcare Inc (Symbol: ALHC). Although SWIM traded at a recent price of $3.15/share, the average analyst target is 76.57% higher at $5.56/share. Similarly, COUR is up 74.69% from the recent stock price of $11.22 if the average analyst target price of $19.60/share is reached, and analysts expect average for the ALHC to reach a target price of $19.39/share, which is 71.12% above the recent price of $11.33. Below is a 12 month price history chart comparing the performance of SWIM, COUR and ALHC stocks:
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 |
|---|---|---|---|---|
| Vanguard Small Cap ETF | VB | $179.97 | $223.87 | 24.39% |
| Latham Group Inc. | SWIM | $3.15 | $5.56 | 76.57% |
| Coursera Inc. | COURT | $11.22 | $19.60 | 74.69% |
| Alignment Health Inc | ALHC | $11.33 | $19.39 | 71.12% |
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:
• Industrial equity hedge funds are buying
• AUID Year-to-Date Performance
• Institutional holders of PMCS
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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