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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 iShares S&P Mid-Cap 400 Value ETF (Symbol: IJJ), we found that the implied analyst target price for the ETF based upon its underlying holdings is $128.73 per unit.

With IJJ trading at a recent price near $114.28 per unit, that means that analysts see 12.64% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IJJ's underlying holdings with notable upside to their analyst target prices are Core & Main Inc (Symbol: CNM), Cognex Corp (Symbol: CGNX), and Commercial Metals Co. (Symbol: CMC). Although CNM has traded at a recent price of $47.98/share, the average analyst target is 17.28% higher at $56.27/share. Similarly, CGNX has 16.23% upside from the recent share price of $42.28 if the average analyst target price of $49.14/share is reached, and analysts on average are expecting CMC to reach a target price of $60.75/share, which is 14.64% above the recent price of $52.99. Below is a twelve month price history chart comparing the stock performance of CNM, CGNX, and CMC:

Below is a summary table of the current analyst target prices discussed above:

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.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.