Analysts Forecast 12% Upside For FYC

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 First Trust Small Cap Growth AlphaDEX Fund ETF (FYC), we found that the implied analyst target price for the ETF based upon its underlying holdings is $36.18 per unit.

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

With FYC trading at a recent price near $32.36 per unit, that means that analysts see 11.79% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FYC's underlying holdings with notable upside to their analyst target prices are Hannon Armstrong Sustainable Infrastructure Capital Inc ( HASI), Amedisys, Inc. ( AMED), and Penumbra Inc ( PEN). Although HASI has traded at a recent price of $19.81/share, the average analyst target is 28.44% higher at $25.44/share. Similarly, AMED has 24.98% upside from the recent share price of $39.55 if the average analyst target price of $49.43/share is reached, and analysts on average are expecting PEN to reach a target price of $76.50/share, which is 23.39% above the recent price of $62.00. Below is a twelve month price history chart comparing the stock performance of HASI, AMED, and PEN:

HASI, AMED, and PEN Relative Performance Chart

Below is a summary table of the current analyst target prices discussed above:

Name Symbol Recent Price Avg. Analyst 12-Mo. Target % Upside to Target
First Trust Small Cap Growth AlphaDEX Fund ETF FYC $32.36 $36.18 11.79%
Hannon Armstrong Sustainable Infrastructure Capital Inc HASI $19.81 $25.44 28.44%
Amedisys, Inc. AMED $39.55 $49.43 24.98%
Penumbra Inc PEN $62.00 $76.50 23.39%

Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.

The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
Get the latest Zacks research report on HASI — FREE
Get the latest Zacks research report on AMED — FREE
Get the latest Zacks research report on PEN — FREE

More from Stocks

PayPal's Stock Is Poised for an Explosive Move

PayPal's Stock Is Poised for an Explosive Move

Boeing's Blowout Quarter Proves Why There Won't Be a Stock Market Panic

Boeing's Blowout Quarter Proves Why There Won't Be a Stock Market Panic

Twitter Founder Jack Dorsey Deserves a Nice Tweet After Q1 Results

Twitter Founder Jack Dorsey Deserves a Nice Tweet After Q1 Results

Key Numbers for Investors to Watch as Amazon, Microsoft and Intel Report Results

Key Numbers for Investors to Watch as Amazon, Microsoft and Intel Report Results

Twitter Tops Wall Street's Estimates - Here Are the Key Numbers You Need to Know

Twitter Tops Wall Street's Estimates - Here Are the Key Numbers You Need to Know