Looking at the underlying holdings of the ETFs in our coverage universe at &l;a href=&q;https://www.etfchannel.com/&q; target=&q;_blank&q;&g;ETF Channel&l;/a&g;, 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.&a;nbsp; For the First Trust Technology AlphaDEX Fund ETF, we found that the implied analyst target price for the ETF based upon its underlying holdings is $68.00 per unit.
With FXL trading at a recent price near $61.84 per unit, that means that analysts see 9.96% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FXL&s;s underlying holdings with notable upside to their analyst target prices are PTC, Monolithic Power Systems and RingCentral. Although PTC has traded at a recent price of $89.96/share, the average analyst target is 12.27% higher at $101.00/share. Similarly, MPWR has 11.45% upside from the recent share price of $134.93 if the average analyst target price of $150.38/share is reached, and analysts on average are expecting RNG to reach a target price of $113.50/share, which is 11.00% above the recent price of $102.25.
Below is a summary table of the current analyst target prices discussed above:
&a;nbsp;
&l;/p&g;&l;div class=&q;table-wrapper&q;&g;&l;table class=&q;hctblstyle&q; border=&q;0&q; cellspacing=&q;0&q; cellpadding=&q;0&q;&g;&l;tbody&g;&l;tr&g;&l;th&g;Name&l;/th&g; &l;th align=&q;center&q;&g;Symbol&l;/th&g; &l;th align=&q;right&q;&g;Recent Price&l;/th&g; &l;th align=&q;right&q;&g;Avg. Analyst 12-Mo. Target&l;/th&g; &l;th align=&q;right&q;&g;% Upside to Target&l;/th&g; &l;/tr&g;&l;tr&g;&l;td&g;&l;b&g;First Trust Technology AlphaDEX Fund ETF&l;/b&g;&l;/td&g; &l;td align=&q;center&q;&g;&l;b&g;FXL&l;/b&g;&l;/td&g; &l;td align=&q;right&q;&g;&l;b&g;$61.84&l;/b&g;&l;/td&g; &l;td align=&q;right&q;&g;&l;b&g;$68.00&l;/b&g;&l;/td&g; &l;td align=&q;right&q;&g;&l;b&g;9.96%&l;/b&g;&l;/td&g; &l;/tr&g;&l;tr&g;&l;td&g;PTC Inc&l;/td&g; &l;td align=&q;center&q;&g;PTC&l;/td&g; &l;td align=&q;right&q;&g;$89.96&l;/td&g; &l;td align=&q;right&q;&g;$101.00&l;/td&g; &l;td align=&q;right&q;&g;12.27%&l;/td&g; &l;/tr&g;&l;tr&g;&l;td&g;Monolithic Power Systems Inc&l;/td&g; &l;td align=&q;center&q;&g;MPWR&l;/td&g; &l;td align=&q;right&q;&g;$134.93&l;/td&g; &l;td align=&q;right&q;&g;$150.38&l;/td&g; &l;td align=&q;right&q;&g;11.45%&l;/td&g; &l;/tr&g;&l;tr&g;&l;td&g;RingCentral Inc&l;/td&g; &l;td align=&q;center&q;&g;RNG&l;/td&g; &l;td align=&q;right&q;&g;$102.25&l;/td&g; &l;td align=&q;right&q;&g;$113.50&l;/td&g; &l;td align=&q;right&q;&g;11.00%&l;/td&g; &l;/tr&g;&l;/tbody&g;&l;/table&g;&l;/div&g;
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;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.
&l;a href=&q;http://www.etfchannel.com/slideshows/ten-etfs-with-most-upside/&q; target=&q;_blank&q;&g;Click here to find out 10 ETFs With Most Upside To Analyst Targets &a;raquo;&l;/a&g;
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