iShares MSCI USA Quality Factor ETF (QUAL) Could See 12% Gain Potential, Analysts Say

The iShares MSCI USA Quality Factor ETF (QUAL) has a potential 12% gain based on its underlying holdings. Analysts see an average target price of $211.10 per unit, compared to the current price of $188.95. Three underlying holdings with notable upside are Gartner Inc (IT), Applied Materials (AMAT), and PayPal Holdings (PYPL). Analysts are optimistic about these stocks, but it's unclear if their targets are justified or overly optimistic.

The iShares MSCI USA Quality Factor ETF (QUAL) has garnered attention from analysts who see a potential 12% gain based on the performance of its underlying holdings. According to data from ETF Channel, the implied analyst target price for QUAL is $211.10 per unit, compared to the current trading price near $188.95. This indicates that analysts are optimistic about the ETF's potential upside [1].

Three of QUAL's underlying holdings—Gartner Inc (IT), Applied Materials, Inc. (AMAT), and PayPal Holdings, Inc. (PYPL)—are particularly notable for their potential gains. Analysts expect IT to reach a target price of $304.78 per share, which is 21.34% higher than its recent price of $251.17. AMAT has a 20.85% upside potential, with analysts targeting $194.29 per share from the recent price of $160.77. PayPal Holdings, Inc. (PYPL) is expected to reach a target price of $81.17 per share, a 15.64% increase from its recent price of $70.19 [1].

However, the question remains whether these targets are justified or overly optimistic. Analysts' high price targets can reflect optimism about future performance but may also indicate a risk of target price downgrades if the targets are out of sync with recent company and industry developments. Further research is required to determine the validity of these targets [1].

In recent news, PayPal's stock price fell 1.4% to $69.22 during mid-day trading on August 27, 2025, indicating a significant decrease compared to its average trading volume. Analysts have mixed ratings on PayPal, with 17 recommending a Buy rating, 14 a Hold, and 2 a Sell, resulting in an average target price of $85.00 [2].

Despite the recent price drop, insider sales indicate a decline in insider ownership. Suzan Kereere sold 4,162 shares, and Deborah M. Messemer sold 3,795 shares, both indicating a decline in ownership. Institutional investors have also recently added to or reduced their stakes in the company, with Mpwm Advisory Solutions LLC and Evermay Wealth Management LLC making notable purchases [2].

In conclusion, the iShares MSCI USA Quality Factor ETF (QUAL) presents an intriguing investment opportunity with a potential 12% gain based on analyst targets. However, investors should conduct thorough research to determine the validity of these targets and assess the risks associated with these investments.

References:
[1] https://www.nasdaq.com/articles/quals-holdings-could-mean-12-gain-potential
[2] https://www.marketbeat.com/instant-alerts/paypal-nasdaqpypl-stock-price-down-14-should-you-sell-2025-08-27/