Analysts Forecast Upside Potential for SPDR S&P Dividend ETF
In analyzing the underlying holdings of the ETFs represented in our coverage at ETF Channel, we have evaluated the trading price of each holding against the average 12-month target price set by analysts. This analysis has led us to compute the weighted average implied target price for the SPDR S&P Dividend ETF (Symbol: SDY), which stands at $148.45 per unit.
Currently, SDY is trading at approximately $134.79 per unit. This indicates that analysts project a 10.13% upside for the ETF based on the average target prices of its underlying holdings. Among those holdings, three stand out with significant upside potential: W.W. Grainger Inc. (Symbol: GWW), New Jersey Resources Corp (Symbol: NJR), and BancFirst Corp. (Symbol: BANF). GWW, priced at $988.19 per share, has a target price that is 12.60% higher at $1,112.70 per share. Similarly, NJR shows a potential upside of 12.35% from its recent price of $48.24, reaching an average target price of $54.20 per share. Additionally, analysts expect BANF’s target price to reach $125.67 per share, reflecting a 12.33% increase from its recent price of $111.87.
Below, you can see a twelve-month price history chart comparing the stock performance of GWW, NJR, and BANF:
Here’s a summary table of the current analyst target prices for each discussed stock:
| Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|---|
| SPDR S&P Dividend ETF | SDY | $134.79 | $148.45 | 10.13% |
| W.W. Grainger Inc. | GWW | $988.19 | $1,112.70 | 12.60% |
| New Jersey Resources Corp | NJR | $48.24 | $54.20 | 12.35% |
| BancFirst Corp. | BANF | $111.87 | $125.67 | 12.33% |
Are analysts justifiably optimistic in their targets, or may they be overly ambitious regarding where these stocks will be trading in a year? Investors should ponder whether analysts have valid reasoning for their forecasts or if they are lagging behind recent developments in the companies and their industries. A high target price compared to a stock’s trading price can signal optimism but might also foreshadow potential downgrades if those targets do not materialize. These inquiries invite further research from investors.
10 ETFs With Most Upside To Analyst Targets »
Also see:
• TWFG YTD Return
• IPAS YTD Return
• Institutional Holders of LCR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
