Peek Under The Hood: IWR Has 11% Upside


Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Russell Mid-Cap ETF (AMEX: IWR), we found that the implied analyst target price for the ETF based upon its underlying holdings is $188.87 per unit.

Click here to find out 10 ETFs With Most Upside To Analyst Targets »

With IWR trading at a recent price near $170.15 per unit, that means that analysts see 11.00% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IWR’s underlying holdings with notable upside to their analyst target prices are Hain Celestial Group Inc (NASD: HAIN), Life Storage Inc (NYSE: LSI), and Guidewire Software Inc (NYSE: GWRE). Although HAIN has traded at a recent price of $35.70/share, the average analyst target is 17.88% higher at $42.08/share. Similarly, LSI has 17.74% upside from the recent share price of $90.03 if the average analyst target price of $106.00/share is reached, and analysts on average are expecting GWRE to reach a target price of $71.67/share, which is 17.72% above the recent price of $60.88. Below is a twelve month price history chart comparing the stock performance of HAIN, LSI, and GWRE:

Below is a summary table of the current analyst target prices discussed above:

Name Symbol Recent Price Avg. Analyst 12-Mo. Target % Upside to Target
iShares Russell Mid-Cap ETF IWR $170.15 $188.87 11.00%
Hain Celestial Group Inc HAIN $35.70 $42.08 17.88%
Life Storage Inc LSI $90.03 $106.00 17.74%
Guidewire Software Inc GWRE $60.88 $71.67 17.72%

Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock’s trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.

The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via

Get the latest Zacks research report on HAIN — FREE

Check out ETF Dividends on ETF Channel.

Products You May Like

Articles You May Like

Markets are expected to remain on edge as the Fed meets in the week ahead
Monday Night Futures LIVE! | Earnings Week Options Trades
SEC eyes tighter disclosure deadlines for hedge funds building big stakes in companies
Promising EV Play Lucid is Worth a Look as it Stops to Recharge
There Are Red Flags With DoorDash’s Story

Leave a Reply

Your email address will not be published. Required fields are marked *