Vanguard High Dividend Yield ETF Shows Significant Upside Potential
In our analysis of ETFs at ETF Channel, we evaluated the trading prices of underlying holdings against their average analyst 12-month forward target prices. From this comparison, we calculated the Vanguard High Dividend Yield ETF (Symbol: VYM) has an implied target price of $147.43 per unit based on its components.
Currently, VYM is trading at approximately $126.37 per unit, indicating analysts foresee a 16.67% upside, based on the average forecasts for its underlying holdings. Among these holdings, three stand out with considerable projected gains: Sandy Spring Bancorp Inc (Symbol: SASR), Community Financial System Inc (Symbol: CBU), and Ardagh Metal Packaging SA (Symbol: AMBP). For instance, SASR is trading at $28.70 per share, while the average target price is $37.00, suggesting a 28.92% upside. CBU also shows promise with a current share price of $56.08 and an average target of $71.33, translating to a potential 27.20% increase. Analysts predict AMBP will reach an average target price of $3.41, representing a 25.51% upside from its recent price of $2.72. Below is a twelve-month price performance chart for SASR, CBU, and AMBP:
Here’s a summary of the current analyst target prices:
| Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|---|
| Vanguard High Dividend Yield ETF | VYM | $126.37 | $147.43 | 16.67% |
| Sandy Spring Bancorp Inc | SASR | $28.70 | $37.00 | 28.92% |
| Community Financial System Inc | CBU | $56.08 | $71.33 | 27.20% |
| Ardagh Metal Packaging SA | AMBP | $2.72 | $3.41 | 25.51% |
The question remains: Are analysts too optimistic about their targets for these stocks, or are their projections justified? Investors should consider whether analysts’ targets align with recent developments in the respective companies and industries. A high target compared to a stock’s trading price may signify optimism, but can also foreshadow possible downgrades if those targets no longer reflect current market realities. Further research will be crucial for investors to navigate these considerations.
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Also see:
• Gas Utilities Dividend Stocks
• CERE Insider Buying
• PBCP Split History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
