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Vanguard Materials ETF Shows 16.69% Upside Potential

Vanguard Materials ETF (VAW) analysts predict a 16.69% upside potential, trading at $198.08 against a target of $231.15. This positive outlook is reflected in the underlying stocks, including Tronox (TROX) with a 39.16% potential upside.

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AI Rating:   7

Potential Upside for ETFs and Underlying Stocks

The analysis reports a positive outlook for the Vanguard Materials ETF (VAW), which is trading at $198.08 with an implied analyst target price of $231.15. This indicates a potential upside of 16.69%. Such a projection can lead to increased investor interest as it suggests a favorable return on investment.

Notably, three underlying holdings of VAW exhibit substantial potential for growth. Tronox Holdings PLC (TROX) is trading at $10.14, with an average analyst target of $14.11, representing a 39.16% upside. Olympic Steel Inc. (ZEUS) currently priced at $35.01 is expected to reach $47.75, indicating a 36.39% potential increase. Fuller Company (FUL), priced at $60.99, has a target of $74.33, suggesting a growth of 21.88%.

This overall bullish sentiment may boost stock prices positively as investors weigh the analyst's future targets against current trading prices. However, there remains a cautionary note regarding whether these targets are justified or reflect overly optimistic forecasts based on past performance.