Peek Under The Hood: PYZ Has 11% Upside

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 PowerShares DWA Basic Materials Momentum Portfolio ETF ( PYZ), we found that the implied analyst target price for the ETF based upon its underlying holdings is $60.24 per unit.

START SLIDESHOW:
10 ETFs With Most Upside To Analyst Targets »

With PYZ trading at a recent price near $54.45 per unit, that means that analysts see 10.63% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PYZ's underlying holdings with notable upside to their analyst target prices are US Silica Holdings, Inc. ( SLCA), Royal Gold Inc ( RGLD), and Innospec Inc ( IOSP). Although SLCA has traded at a recent price of $42.93/share, the average analyst target is 17.24% higher at $50.33/share. Similarly, RGLD has 13.86% upside from the recent share price of $74.40 if the average analyst target price of $84.71/share is reached, and analysts on average are expecting IOSP to reach a target price of $62.67/share, which is 12.91% above the recent price of $55.50. Below is a twelve month price history chart comparing the stock performance of SLCA, RGLD, and IOSP:

SLCA, RGLD, and IOSP Relative Performance Chart

Combined, SLCA, RGLD, and IOSP represent 9.51% of the PowerShares DWA Basic Materials Momentum Portfolio ETF. Below is a summary table of the current analyst target prices discussed above:

If you liked this article you might like

PYZ Makes Bullish Cross Above Critical Moving Average

Metals and Mining Sector May Be Shining Again

GDP Chart View: Recession Likely Over

Monday's ETF Winners & Losers

Monday's ETF Winners & Losers

Monday's ETF Winners & Losers

Monday's ETF Winners & Losers