ETF Analysis: First Trust Value Line Dividend Index Fund Insights
In a recent analysis at ETF Channel, we examined the underlying assets of various ETFs, comparing each holding’s trading price with the average 12-month forward target price set by analysts. For the First Trust Value Line Dividend Index Fund ETF (Symbol: FVD), the weighted average implied analyst target price stands at $49.61 per unit.
Currently, FVD trades near $44.58 per unit, indicating an anticipated 11.28% upside based on analysts’ projections for the underlying holdings. Among these holdings, three stand out with significant upside potential to their respective target prices: Bank of Nova Scotia Halifax (Symbol: BNS), HSBC Holdings plc (Symbol: HSBC), and Bank of Montreal (Quebec) (Symbol: BMO). Although BNS is trading at $46.87 per share, analysts have set an average target of $56.77, suggesting a 21.13% increase. Similarly, HSBC shares priced at $57.26 show an 18.76% upside potential, with a target of $68.00. Lastly, BMO’s current price of $96.43 compares to an analyst target of $109.30, reflecting a potential rise of 13.34%.
Below is a twelve-month price history chart illustrating the stock performance of BNS, HSBC, and BMO:
Here’s a summary of the current analyst target prices for these stocks:
| Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|---|
| First Trust Value Line Dividend Index Fund ETF | FVD | $44.58 | $49.61 | 11.28% |
| Bank of Nova Scotia Halifax | BNS | $46.87 | $56.77 | 21.13% |
| HSBC Holdings plc | HSBC | $57.26 | $68.00 | 18.76% |
| Bank of Montreal (Quebec) | BMO | $96.43 | $109.30 | 13.34% |
These findings raise questions about whether analysts are justified in their targets or if they may be overly optimistic about where these stocks will trade in the coming year. Investors must consider whether analysts’ expectations are grounded in recent developments or if they represent dated perspectives. A high target price compared to a stock’s current price can denote optimism, but it might also signal potential price downgrades if the targets no longer align with market realities. This is a topic that warrants further investigation by investors.
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also see:
Cheap Growth Stocks
CR market cap history
Top Ten Hedge Funds Holding RLD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
