How The Parts Add Up: SLYG Headed For $247

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 SPDR S&P 600 Small Cap Growth ETF (SLYG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $246.88 per unit.

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

With SLYG trading at a recent price near $219.49 per unit, that means that analysts see 12.48% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SLYG's underlying holdings with notable upside to their analyst target prices are Motorcar Parts of America Inc ( MPAA), Lumber Liquidators Holdings Inc ( LL), and AdvanSix Inc ( ASIX). Although MPAA has traded at a recent price of $24.51/share, the average analyst target is 38.72% higher at $34.00/share. Similarly, LL has 36.39% upside from the recent share price of $25.57 if the average analyst target price of $34.88/share is reached, and analysts on average are expecting ASIX to reach a target price of $47.00/share, which is 33.60% above the recent price of $35.18. Below is a twelve month price history chart comparing the stock performance of MPAA, LL, and ASIX:

MPAA, LL, and ASIX 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
SPDR S&P 600 Small Cap Growth ETF SLYG $219.49 $246.88 12.48%
Motorcar Parts of America Inc MPAA $24.51 $34.00 38.72%
Lumber Liquidators Holdings Inc LL $25.57 $34.88 36.39%
AdvanSix Inc ASIX $35.18 $47.00 33.60%

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 MPAA — FREE
Get the latest Zacks research report on LL — FREE
Get the latest Zacks research report on ASIX — FREE

More from Stocks

UnitedHealth Could Strike Deal for Tenet's Conifer Subsidiary: Reports

UnitedHealth Could Strike Deal for Tenet's Conifer Subsidiary: Reports

One Chart Will Make You Even More Pumped Up to Buy Tech Stocks

One Chart Will Make You Even More Pumped Up to Buy Tech Stocks

Google Shares Shrug Off $5 Billion EU Fine Against Alphabet

Google Shares Shrug Off $5 Billion EU Fine Against Alphabet

Jim Cramer's Biggest Moments From Delivering Alpha

Jim Cramer's Biggest Moments From Delivering Alpha

The Recent Pullback in the Defense Sector Provides a Buying Opportunity

The Recent Pullback in the Defense Sector Provides a Buying Opportunity