MetalsChannel.com
Analysts Forecast 13% Gains Ahead For SLXBy Metals Channel Staff, Thursday, March 7, 7:25 AM ETLooking 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 Steel ETF (NYSE:SLX), we found that the implied analyst target price for the ETF based upon its underlying holdings is $79.13 per unit. With SLX trading at a recent price near $70.24 per unit, that means that analysts see 12.65% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SLX's underlying holdings with notable upside to their analyst target prices are Rio Tinto plc (NYSE:RIO), Carpenter Technology Corp. (NYSE:CRS), and Tenaris SA (NYSE:TS). Although RIO has traded at a recent price of $64.85/share, the average analyst target is 33.38% higher at $86.50/share. Similarly, CRS has 32.29% upside from the recent share price of $65.26 if the average analyst target price of $86.33/share is reached, and analysts on average are expecting TS to reach a target price of $42.95/share, which is 14.90% above the recent price of $37.38. Below is a twelve month price history chart comparing the stock performance of RIO, CRS, and TS:
Combined, RIO, CRS, and TS represent 17.68% of the Steel ETF. Below is a summary table of the current analyst target prices discussed above:
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 Quandl.com.
This Article's Word Cloud:
Analyst
Below
Carpenter
Corp
ETFs
FREEGet
NYSE
Steel
Target
Technology
Tenaris
Tinto
Upside
With
Zacks
about
above
analyst
analysts
average
background
based
border
bottom
color
data
font
from
have
hctblstyle
holdings
implied
latest
mdash
month
padding
price
prices
recent
report
research
share
solid
stock
target
targets
that
trading
underlying
upside
|
Start slideshow:Analysts Forecast 13% Gains Ahead For SLX | www.MetalsChannel.com
Copyright © 2010 - 2024, All Rights Reserved Nothing in Metals Channel is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy. Video widget and metals videos powered by Market News Video. Quote data delayed at least 20 minutes; data powered by Ticker Technologies, and Mergent. Contact Metals Channel; Meet Our Editorial Staff.