Look Under The Hood: PXI Has 16% 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 Energy Momentum Portfolio ETF ( PXI), we found that the implied analyst target price for the ETF based upon its underlying holdings is $47.26 per unit.

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With PXI trading at a recent price near $40.87 per unit, that means that analysts see 15.63% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PXI's underlying holdings with notable upside to their analyst target prices are Sanchez Energy Corp. ( SN), CONSOL Energy Inc ( CNX), and PDC Energy Inc ( PDCE). Although SN has traded at a recent price of $6.85/share, the average analyst target is 26.51% higher at $8.67/share. Similarly, CNX has 21.45% upside from the recent share price of $18.48 if the average analyst target price of $22.44/share is reached, and analysts on average are expecting PDCE to reach a target price of $76.33/share, which is 15.92% above the recent price of $65.85. Below is a twelve month price history chart comparing the stock performance of SN, CNX, and PDCE:

SN, CNX, and PDCE Relative Performance Chart

Combined, SN, CNX, and PDCE represent 7.72% of the PowerShares DWA Energy Momentum Portfolio ETF. Below is a summary table of the current analyst target prices discussed above:

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