PBJ's Underlying Holdings Imply 10% Gain Potential

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 Dynamic Food & Beverage Portfolio ETF ( PBJ), we found that the implied analyst target price for the ETF based upon its underlying holdings is $35.81 per unit.

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With PBJ trading at a recent price near $32.69 per unit, that means that analysts see 9.56% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PBJ's underlying holdings with notable upside to their analyst target prices are Calavo Growers, Inc. ( CVGW), Ingredion Inc ( INGR), and Performance Food Group Co ( PFGC). Although CVGW has traded at a recent price of $55.90/share, the average analyst target is 31.93% higher at $73.75/share. Similarly, INGR has 27.12% upside from the recent share price of $119.57 if the average analyst target price of $152.00/share is reached, and analysts on average are expecting PFGC to reach a target price of $25.75/share, which is 16.25% above the recent price of $22.15. Below is a twelve month price history chart comparing the stock performance of CVGW, INGR, and PFGC:

CVGW, INGR, and PFGC Relative Performance Chart

Combined, CVGW, INGR, and PFGC represent 7.61% of the PowerShares Dynamic Food & Beverage Portfolio ETF. Below is a summary table of the current analyst target prices discussed above:

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