Strong Upside Potential in Direxion Daily S&P 500 Bull ETF
At ETF Channel, we analyze the underlying holdings of various ETFs in our coverage universe. By comparing the trading price of each holding against the average analyst 12-month forward target price, we calculated the weighted average implied analyst target price for the ETF itself. For the Direxion Daily S&P 500 Bull 3X ETF (Symbol: SPXL), the implied analyst target price based on its underlying holdings stands at $125.04 per unit.
Currently, SPXL is trading near $95.83 per unit. This price indicates that analysts foresee a 30.48% upside for this ETF when considering the average analyst targets of its underlying holdings. Notably, three of SPXL’s underlying stocks show significant upside potential: Intel Corp (Symbol: INTC), Match Group Inc (Symbol: MTCH), and Waters Corp. (Symbol: WAT). Recently, INTC trades at $18.13 per share, while the average analyst target is 35.77% higher at $24.62 per share. Similarly, MTCH shows a 34.36% upside from its recent share price of $27.03 if it meets the average target of $36.32 per share. Meanwhile, analysts predict WAT could reach a target price of $408.44 per share, representing a 33.07% increase from its recent price of $306.94. Below is a twelve-month price history chart comparing the stock performance of INTC, MTCH, and WAT:
Additionally, here’s a summary table of the current analyst target prices for the discussed stocks:
| Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|---|
| Direxion Daily S&P 500 Bull 3X ETF | SPXL | $95.83 | $125.04 | 30.48% |
| Intel Corp | INTC | $18.13 | $24.62 | 35.77% |
| Match Group Inc | MTCH | $27.03 | $36.32 | 34.36% |
| Waters Corp. | WAT | $306.94 | $408.44 | 33.07% |
The questions remain whether analysts are justified in these targets or overly optimistic regarding the future trading scenarios for these stocks. Valid justifications for these targets must be evaluated against recent developments in the companies and their industries. A high price target relative to a stock’s trading price may reflect optimism about future performance; however, it may also signal potential for price target downgrades if such targets no longer align with the current market landscape. These considerations warrant further investor research.
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Also see:
• Secondary Stock Offerings
• LSE Insider Buying
• BKI Stock Predictions
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
