Key Takeaways
- Analysis of ETF holdings reveals a potential 15.22% upside for the SPDR S&P 600 Small Cap Growth ETF (SLYG).
- This potential upside is calculated by comparing current trading prices against average analyst 12-month forward target prices of underlying assets.
- Notable holdings within SLYG showing significant analyst-driven upside include Ceva Inc (CEVA), Central Pacific Financial Corp (CPF), and Apple Hospitality REIT Inc (APLE).
- Analysts project considerable growth for CEVA (19.76%), CPF (17.03%), and APLE (15.38%) based on their target prices relative to current market values.
Analyzing ETF Upside Potential
Examining the underlying components of various Exchange Traded Funds (ETFs) offers a unique perspective on potential investment performance. Our analysis, focusing on ETFs tracked by ETF Channel, compares the current trading price of each ETF’s holdings against the consensus 12-month forward target price set by financial analysts. This data allows us to compute a weighted average implied analyst target price for the ETF itself.
For the SPDR S&P 600 Small Cap Growth ETF (Symbol: SLYG), this methodology yields an implied analyst target price of $110.51 per unit. Considering its recent trading price around $95.91, this suggests a potential upside of approximately 15.22% for investors.
Individual Holdings Driving SLYG’s Potential
Within the SLYG ETF’s portfolio, several individual stocks stand out with notable potential for appreciation based on analyst price targets. These include Ceva Inc (Symbol: CEVA), Central Pacific Financial Corp (Symbol: CPF), and Apple Hospitality REIT Inc (Symbol: APLE).
💡 Ceva Inc (CEVA) is trading at approximately $28.39 per share, with analysts collectively setting an average target price of $34.00 per share, indicating a potential upside of 19.76%.
📍 Central Pacific Financial Corp (CPF) has a current share price of $29.48. Analysts’ average target price for CPF is $34.50, suggesting a possible upward movement of 17.03%.
✅ Apple Hospitality REIT Inc (APLE) is presently trading at $11.70 per share. The average analyst expectation points to a target price of $13.50, representing a potential gain of 15.38%.
Analyst Target Price Summary
The following table summarizes the current analyst target prices for the SPDR S&P 600 Small Cap Growth ETF (SLYG) and its highlighted underlying holdings:
| Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|---|
| SPDR S&P 600 Small Cap Growth ETF | SLYG | $95.91 | $110.51 | 15.22% |
| Ceva Inc | CEVA | $28.39 | $34.00 | 19.76% |
| Central Pacific Financial Corp | CPF | $29.48 | $34.50 | 17.03% |
| Apple Hospitality REIT Inc | APLE | $11.70 | $13.50 | 15.38% |
Investor Considerations
Understanding the divergence between current stock prices and analyst target prices is crucial for informed investment decisions. The significant potential upside indicated by these targets raises questions about the basis and sustainability of these analyst projections.
📊 Investors are encouraged to investigate whether analyst targets are grounded in current company performance, industry trends, and realistic growth prospects. A high target price, while seemingly optimistic, could also signal that prior targets may have been set under different market conditions and might be due for revisions if recent developments haven’t been factored in. Further due diligence is recommended to validate these analyst expectations.
Final Thoughts
The analysis of SLYG’s holdings suggests a notable upside potential for the ETF, driven by several individual stocks that analysts have assigned higher target prices to. While these figures provide a potential roadmap, investors should conduct thorough research to confirm the validity of these analyst projections.