Monday, April 28, 2014

Stock Price Targets

Often analysts will give a 12 month target price when they have their stock recommendations. You can pick up the average 12 month Price Target at a number of sites. Some sites also give the high and low 12 month target price as well. I generally get mine from TD Waterhouse.

The site 4-Traders generally will give you the 12 month target stock price for most Canadian stocks. Search for the stock you want using the stock symbol (for example, the symbol for Toromont Industries Ltd. is TIH). When you get the stock, you need to look under the "consensus" tab for the 12 months stock price.

You can use the 12 month stock price target to get what analysts expect the total return to be over the next 12 month. For example, if the current price is $25.85 and the 12 month target price is $27.30 that gives you a 12 month capital gain of 5.61%. If the current dividend yield is 2.32%, you add together 5.61% and 2.32% to get a total return over the next 12 months of 7.93%.

On my other blog I am today writing about Manulife Financial Corp. (TSX-MFC, NYSE-MFC) ...continue...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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1 comment:

  1. Price targets are a good indicator of how much upside an investor can make when investing in a stock, that is if the analyst consistently performs well