Metals Channel
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

VOE, AJG, CARR, PCG: Large Outflows Detected at ETF
Thursday, February 8, 10:53 AM ET, by Market News Video Staff

Symbols mentioned in this story: VOE, AJG, CARR, PCG Exchange traded funds (ETFs) trade just ...

Notable Monday Option Activity: BIG, RH, BFAM
Monday, February 12, 3:20 PM ET, by Market News Video Staff

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume ...

First Week of August 16th Options Trading For RH (RH)
Tuesday, February 13, 11:19 AM ET, by Market News Video Staff

Investors in RH (RH) saw new options begin trading this week, for the August 16th ...

RWL's Underlying Holdings Could Mean 10% Gain Potential
Wednesday, February 14, 7:03 AM ET, by Market News Video Staff

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

First Week of September 20th Options Trading For SPDR Series Trust - S&P Homebuilders ETF (XHB)
Wednesday, February 14, 10:56 AM ET, by Market News Video Staff

Investors in SPDR Series Trust - S&P Homebuilders ETF (XHB) saw new options become available ...

We Did The Math XHB Can Go To $86

By Metals Channel Staff, Monday, November 1, 8:28 AM ET
Play Video: The Importance of ETFs


If the video does not load after a few moments, Upgrade to the Latest Flash Player.
Email EnvelopeFree Email Alerts By Stock:
Get Dividend Alerts
Get SEC Filing Alerts

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 SPDR— S&P— Homebuilders ETF (NYSE:XHB), we found that the implied analyst target price for the ETF based upon its underlying holdings is $85.56 per unit.

With XHB trading at a recent price near $77.58 per unit, that means that analysts see 10.28% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of XHB's underlying holdings with notable upside to their analyst target prices are Installed Building Products Inc (NYSE:IBP), RH (NYSE:RH), and Carrier Global Corp (NYSE:CARR). Although IBP has traded at a recent price of $127.05/share, the average analyst target is 13.68% higher at $144.43/share. Similarly, RH has 13.05% upside from the recent share price of $659.63 if the average analyst target price of $745.71/share is reached, and analysts on average are expecting CARR to reach a target price of $58.67/share, which is 12.32% above the recent price of $52.23. Below is a twelve month price history chart comparing the stock performance of IBP, RH, and CARR:

IBP, RH, and CARR Relative Performance Chart

Combined, IBP, RH, and CARR represent 8.31% of the SPDR— S&P— Homebuilders ETF. 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
SPDR— S&P— Homebuilders ETF XHB $77.58 $85.56 10.28%
Installed Building Products Inc IBP $127.05 $144.43 13.68%
RH RH $659.63 $745.71 13.05%
Carrier Global Corp CARR $52.23 $58.67 12.32%

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.
Get the latest Zacks research report on IBP — FREE
Get the latest Zacks research report on RH — FREE
Get the latest Zacks research report on CARR — FREE


This Article's Word Cloud:   Analyst   Below   Building   CARR   Carrier   Corp   ETFs   FREEGet   Global   Homebuilders   Installed   NYSE   Products   SPDR   Target   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   recent   report   research   share   target   targets   that   trading   underlying   upside

We Did The Math XHB Can Go To $86 | 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 stock 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.