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. From this, we computed the weighted average implied analyst target price for the ETF itself.
For the First Trust Value Line Dividend Index Fund ETF (Symbol: FVD), we found that the implied analyst target price based on its underlying holdings is $50.88 per unit. With FVD trading at a recent price near $45.86 per unit, this indicates that analysts see approximately 10.94% upside for this ETF when looking through to the average analyst targets of its underlying holdings.
### Notable Holdings with Upside Potential
Three of FVD’s underlying holdings show notable upside relative to their analyst target prices:
– **Thomson Reuters Corp (Symbol: TRI)**: The recent share price is $159.33, while the average analyst target is 28.53% higher at $204.79.
– **Essential Utilities Inc (Symbol: WTRG)**: Trading at $40.67 per share, with an average analyst target price of $46.12, representing a 13.41% upside.
– **Kroger Co (Symbol: KR)**: Currently priced at $69.10 per share, with analysts expecting it to reach $77.70, or 12.45% upside.
Below is a twelve-month price history chart comparing the stock performance of TRI, WTRG, and KR.
### Summary Table of Analyst Target Prices
| Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|——————————————-|——–|————–|—————————-|——————–|
| First Trust Value Line Dividend Index Fund ETF | FVD | $45.86 | $50.88 | 10.94% |
| Thomson Reuters Corp | TRI | $159.33 | $204.79 | 28.53% |
| Essential Utilities Inc | WTRG | $40.67 | $46.12 | 13.41% |
| Kroger Co | KR | $69.10 | $77.70 | 12.45% |
### Are Analysts’ Targets Justified?
Are analysts justified in these target prices, or are they overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have valid justification for these targets, or are they behind the curve on recent company and industry developments?
A high price target relative to a stock’s current trading price can reflect optimism about future performance. However, it can also precede target price downgrades if these targets are outdated or based on past conditions that have since changed.
These are important questions that require further research from investors.
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**Related Resources:**
– [10 ETFs With Most Upside To Analyst Targets »](#)
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– SMP Next Dividend Date
– VTAK Split History
*The views and opinions expressed herein are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.*
https://www.nasdaq.com/articles/fvds-holdings-imply-11-gain-potential
