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 Vanguard High Dividend Yield ETF (Symbol: VYM), we found that the implied analyst target price based on its underlying holdings is $155.66 per unit. With VYM trading at a recent price near $140.91 per unit, this suggests that analysts see a 10.47% upside for this ETF, looking through to the average analyst targets of the underlying holdings.
Three of VYM’s underlying holdings with notable upside relative to their analyst target prices are Bank of Hawaii Corp (Symbol: BOH), World Kinect Corp (Symbol: WKC), and Eastern Bankshares Inc (Symbol: EBC):
– **Bank of Hawaii Corp (BOH):** Recently traded at $62.71 per share. The average analyst target price is 12.95% higher at $70.83 per share.
– **World Kinect Corp (WKC):** Recently traded at $25.17 per share. The average analyst target price of $28.33 per share implies a 12.57% upside.
– **Eastern Bankshares Inc (EBC):** Recently traded at $18.75 per share. Analysts expect a target price of $21.00 per share, which is 12.00% above the recent price.
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 |
|——————————-|——–|————–|—————————-|——————–|
| Vanguard High Dividend Yield ETF | VYM | $140.91 | $155.66 | 10.47% |
| Bank of Hawaii Corp | BOH | $62.71 | $70.83 | 12.95% |
| World Kinect Corp | WKC | $25.17 | $28.33 | 12.57% |
| Eastern Bankshares Inc | EBC | $18.75 | $21.00 | 12.00% |
*Below is a twelve-month price history chart comparing the stock performance of BOH, WKC, and EBC.*
—
**Are Analysts Justified in These Targets?**
Are analysts justified in these targets, or are they overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have valid reasons 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. However, it can also be a precursor to target price downgrades if the targets are relics of past expectations.
These are important questions that require further investor research.
—
**Explore More:**
– [10 ETFs With Most Upside To Analyst Targets](#)
– Holdings Channel
– EXA Videos
– Funds Holding DOCS
—
*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/vyms-underlying-holdings-could-mean-10-gain-potential