Dividend Channel
Market News Video Dividend Detective The Warren Buffetts Next Door Stock message boards
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

Notable Tuesday Option Activity: VMW, GPC, MDR
Tuesday, April 18, 3:40 PM ET, by Market News Video Staff

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume ...

DK Crosses Critical Technical Indicator
Wednesday, April 19, 3:50 PM ET, by Market News Video Staff

In trading on Wednesday, shares of Delek US Holdings Inc (DK) entered into oversold territory, ...

Short Interest Falls 72.7% For MDR
Wednesday, April 26, 1:10 PM ET, by Market News Video Staff

The most recent short interest data has been released for the 04/13/2017 settlement date, which ...

Notable Two Hundred Day Moving Average Cross - MDR
Thursday, May 4, 11:06 AM ET, by Market News Video Staff

In trading on Thursday, shares of McDermott International Inc (MDR) crossed below their 200 day ...

Notable Friday Option Activity: PENN, DIN, MDR
Friday, May 5, 3:23 PM ET, by Market News Video Staff

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy ...

  More articles:  1 2 3 4 5 6 7 next »

The Math Shows RALS Can Go To $41

By Dividend Channel Staff, Friday, August 18, 9:52 AM ET
Play Video: The Importance of ETFs


If the video does not load after a few moments, Upgrade to the Latest Flash Player.

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 ProShares RAFI Long/Short ETF (AMEX:RALS), we found that the implied analyst target price for the ETF based upon its underlying holdings is $41.38 per unit.

With RALS trading at a recent price near $37.61 per unit, that means that analysts see 10.03% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of RALS's underlying holdings with notable upside to their analyst target prices are Delek US Holdings Inc (NYSE:DK), PDL BioPharma Inc (NASDAQ:PDLI), and McDermott International Inc (NYSE:MDR). Although DK has traded at a recent price of $20.88/share, the average analyst target is 30.37% higher at $27.22/share. Similarly, PDLI has 28.21% upside from the recent share price of $2.73 if the average analyst target price of $3.50/share is reached, and analysts on average are expecting MDR to reach a target price of $7.12/share, which is 25.22% above the recent price of $5.69. Below is a twelve month price history chart comparing the stock performance of DK, PDLI, and MDR:

DK, PDLI, and MDR 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
ProShares RAFI Long/Short ETF RALS $37.61 $41.38 10.03%
Delek US Holdings Inc DK $20.88 $27.22 30.37%
PDL BioPharma Inc PDLI $2.73 $3.50 28.21%
McDermott International Inc MDR $5.69 $7.12 25.22%

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 DK FREE
Get the latest Zacks research report on PDLI FREE
Get the latest Zacks research report on MDR FREE


This Article's Word Cloud:   Below   BioPharma   Delek   FREEGet   Holdings   Long   McDermott   NYSE   PDLI   ProShares   RAFI   RALS   Short   Target   Zacks   analyst   analysts   average   background   based   border   bottom   color   data   from   have   hctblstyle   holdings   implied   latest   month   padding   price   prices   recent   report   research   share   solid   stock   target   targets   that   these   trading   underlying   unit   upon   upside   which

The Math Shows RALS Can Go To $41 | www.DividendChannel.com | Copyright © 2010 - 2017, All Rights Reserved

Nothing in Dividend Channel is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy. Video widget and dividend videos powered by Market News Video. Quote data delayed at least 20 minutes; data powered by Ticker Technologies, and Mergent. Contact Dividend Channel; Meet Our Editorial Staff.