Look Under The Hood: SDVY Has 14% Upside
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 23 2025
0mins
Source: NASDAQ.COM
ETF Analysis: The First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) has an implied analyst target price of $39.18, indicating a potential upside of 13.91% from its current trading price of $34.39.
Stock Performance Insights: Notable underlying holdings such as Advanced Drainage Systems Inc, NOV Inc, and UMB Financial Corp show significant upside potential based on analyst target prices, raising questions about the validity and optimism of these targets in light of recent market developments.
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Analyst Views on WMS
Wall Street analysts forecast WMS stock price to rise
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 138.090
Low
168.00
Averages
178.67
High
197.00
Current: 138.090
Low
168.00
Averages
178.67
High
197.00
About WMS
Advanced Drainage Systems, Inc. is a manufacturer of stormwater and onsite wastewater solutions. The Company and its subsidiary, Infiltrator Water Technologies, LLC, provide stormwater drainage and onsite wastewater products used in a wide variety of markets and applications, including commercial, residential, infrastructure and agriculture, while delivering customer service. Its pipe segment manufactures and markets thermoplastic corrugated pipe throughout the United States. Its infiltrator segment is a provider of plastic leachfield chambers and systems, septic tanks and accessories, primarily for use in residential applications. Its international segment manufactures and markets products in regions outside the United States, with a strategy focused on its owned facilities in Canada and those markets serviced through its joint ventures in Mexico and South America. Its other segments manufacture a range of allied products and other that are complementary to their pipe products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Wall Street's Latest Rating Changes Overview
- Openlane Upgrade: JPMorgan upgraded Openlane from neutral to overweight and raised its December 2026 price target to $38, indicating that the online used car marketplace is experiencing robust growth and has potential for sustainable expansion over the coming years.
- Dollar General Downgrade: Deutsche Bank downgraded Dollar General from buy to hold, citing challenges in its customer base and the widening gap in the K-shaped economy, which may limit same-store sales upside, reflecting a cautious outlook on the company.
- Ecolab Upgrade: UBS upgraded Ecolab from neutral to buy and raised its price target to $325, demonstrating strong demand and positive performance expectations for the chemicals company amid a favorable market environment.
- FedEx Upgrade: JPMorgan upgraded FedEx from neutral to overweight, expressing optimism ahead of its upcoming earnings report, particularly regarding the separation of its freight business, which is seen as an attractive risk-reward opportunity.
See More
Advanced Drainage Systems Q4 Fiscal 2026 Earnings Highlights
- Significant Revenue Growth: In Q4 of fiscal 2026, Advanced Drainage Systems reported revenue of $677 million, reflecting a 10% year-over-year increase that exceeded expectations, demonstrating the company's strong market performance and confidence in future growth.
- Strong EBITDA Performance: Adjusted EBITDA rose by 6%, achieving a margin of 27.8%, indicating ongoing improvements in cost control and operational efficiency, which help bolster investor confidence.
- Cash Flow and Shareholder Returns: The company generated $569 million in free cash flow for the year, a 54% increase from the previous year, while announcing an 11% dividend increase, reflecting a positive stance on shareholder returns and financial health.
- Optimistic Future Outlook: The company expects fiscal 2027 revenue to range between $3.35 billion and $3.55 billion, and despite facing inflationary pressures, management has implemented pricing strategies to offset rising costs, showcasing their ability to navigate market challenges.
See More
WMS Q4 2026 Earnings Call Transcript
See More
Advanced Drainage Systems Beats Earnings Estimates
- Earnings Surprise: Advanced Drainage Systems reported earnings of $1.07 per share, exceeding the Zacks consensus estimate of $1.00, and up from $1.03 a year ago, indicating sustained improvement in the company's profitability.
- Significant Revenue Growth: The company achieved revenues of $676.76 million for the quarter, surpassing the Zacks consensus estimate by 2.48%, and reflecting a 9.93% increase from $615.76 million year-over-year, showcasing strong market performance.
- Underperformance in Market: Despite the positive earnings report, Advanced Drainage's shares have declined by 5.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.6%, indicating a lack of investor confidence in the stock.
- Cautious Future Outlook: The current Zacks Rank of 3 (Hold) suggests a cautious investor sentiment regarding earnings expectations for the upcoming quarters, particularly as the overall industry rank is in the bottom 40% of the Zacks categories.
See More
Advanced Drainage Systems Announces 11.1% Increase in Quarterly Dividend
- Quarterly Dividend Increase: Advanced Drainage Systems has declared a quarterly dividend of $0.20 per share, marking an 11.1% increase from the previous $0.18, indicating the company's ongoing improvement in cash flow stability and profitability, which enhances investor confidence.
- Dividend Yield: The forward yield of 0.58% reflects the company's attractiveness in the current market environment, potentially drawing in more investors seeking stable returns, thereby increasing shareholder value.
- Financial Performance Beats Expectations: The company reported a non-GAAP EPS of $1.07, exceeding expectations by $0.10, while revenue of $676.8 million also surpassed forecasts by $24.29 million, demonstrating strong performance in a competitive market and driving future growth potential.
- Shareholder Equity Assurance: The dividend will be payable on June 15, with a record date of June 1 and an ex-dividend date also on June 1, ensuring that shareholders receive timely returns, further solidifying the trust between the company and its investors.
See More
Advanced Drainage Systems Issues 2027 Sales Guidance
- Sales Guidance Issued: Advanced Drainage Systems has projected net sales for 2027 to be between $3.35 billion and $3.55 billion in its fourth-quarter earnings report, reflecting confidence in future market demand that could drive stock price recovery.
- Dividend Increase: The company's Board of Directors has approved an 11% increase in the quarterly cash dividend to $0.20 per share, payable on June 15, 2026, which not only enhances shareholder returns but may also attract more investor interest in the stock.
- Stock Price Fluctuation: In Thursday's pre-market trading, WMS shares were priced at $131.00, down $6.10 or 4.45%, indicating a cautious market reaction to the earnings report that could impact short-term investor confidence.
- Market Outlook: With the company's positive sales outlook and the dividend increase, investor confidence in its long-term growth potential is expected to strengthen, further solidifying its leadership position in the water management solutions market.
See More
Wall Street's Latest Rating Changes Overview
- Openlane Upgrade: JPMorgan upgraded Openlane from neutral to overweight and raised its December 2026 price target to $38, indicating that the online used car marketplace is experiencing robust growth and has potential for sustainable expansion over the coming years.
- Dollar General Downgrade: Deutsche Bank downgraded Dollar General from buy to hold, citing challenges in its customer base and the widening gap in the K-shaped economy, which may limit same-store sales upside, reflecting a cautious outlook on the company.
- Ecolab Upgrade: UBS upgraded Ecolab from neutral to buy and raised its price target to $325, demonstrating strong demand and positive performance expectations for the chemicals company amid a favorable market environment.
- FedEx Upgrade: JPMorgan upgraded FedEx from neutral to overweight, expressing optimism ahead of its upcoming earnings report, particularly regarding the separation of its freight business, which is seen as an attractive risk-reward opportunity.
See More
Advanced Drainage Systems Q4 Fiscal 2026 Earnings Highlights
- Significant Revenue Growth: In Q4 of fiscal 2026, Advanced Drainage Systems reported revenue of $677 million, reflecting a 10% year-over-year increase that exceeded expectations, demonstrating the company's strong market performance and confidence in future growth.
- Strong EBITDA Performance: Adjusted EBITDA rose by 6%, achieving a margin of 27.8%, indicating ongoing improvements in cost control and operational efficiency, which help bolster investor confidence.
- Cash Flow and Shareholder Returns: The company generated $569 million in free cash flow for the year, a 54% increase from the previous year, while announcing an 11% dividend increase, reflecting a positive stance on shareholder returns and financial health.
- Optimistic Future Outlook: The company expects fiscal 2027 revenue to range between $3.35 billion and $3.55 billion, and despite facing inflationary pressures, management has implemented pricing strategies to offset rising costs, showcasing their ability to navigate market challenges.
See More
WMS Q4 2026 Earnings Call Transcript
See More
Advanced Drainage Systems Beats Earnings Estimates
- Earnings Surprise: Advanced Drainage Systems reported earnings of $1.07 per share, exceeding the Zacks consensus estimate of $1.00, and up from $1.03 a year ago, indicating sustained improvement in the company's profitability.
- Significant Revenue Growth: The company achieved revenues of $676.76 million for the quarter, surpassing the Zacks consensus estimate by 2.48%, and reflecting a 9.93% increase from $615.76 million year-over-year, showcasing strong market performance.
- Underperformance in Market: Despite the positive earnings report, Advanced Drainage's shares have declined by 5.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.6%, indicating a lack of investor confidence in the stock.
- Cautious Future Outlook: The current Zacks Rank of 3 (Hold) suggests a cautious investor sentiment regarding earnings expectations for the upcoming quarters, particularly as the overall industry rank is in the bottom 40% of the Zacks categories.
See More
Advanced Drainage Systems Announces 11.1% Increase in Quarterly Dividend
- Quarterly Dividend Increase: Advanced Drainage Systems has declared a quarterly dividend of $0.20 per share, marking an 11.1% increase from the previous $0.18, indicating the company's ongoing improvement in cash flow stability and profitability, which enhances investor confidence.
- Dividend Yield: The forward yield of 0.58% reflects the company's attractiveness in the current market environment, potentially drawing in more investors seeking stable returns, thereby increasing shareholder value.
- Financial Performance Beats Expectations: The company reported a non-GAAP EPS of $1.07, exceeding expectations by $0.10, while revenue of $676.8 million also surpassed forecasts by $24.29 million, demonstrating strong performance in a competitive market and driving future growth potential.
- Shareholder Equity Assurance: The dividend will be payable on June 15, with a record date of June 1 and an ex-dividend date also on June 1, ensuring that shareholders receive timely returns, further solidifying the trust between the company and its investors.
See More
Advanced Drainage Systems Issues 2027 Sales Guidance
- Sales Guidance Issued: Advanced Drainage Systems has projected net sales for 2027 to be between $3.35 billion and $3.55 billion in its fourth-quarter earnings report, reflecting confidence in future market demand that could drive stock price recovery.
- Dividend Increase: The company's Board of Directors has approved an 11% increase in the quarterly cash dividend to $0.20 per share, payable on June 15, 2026, which not only enhances shareholder returns but may also attract more investor interest in the stock.
- Stock Price Fluctuation: In Thursday's pre-market trading, WMS shares were priced at $131.00, down $6.10 or 4.45%, indicating a cautious market reaction to the earnings report that could impact short-term investor confidence.
- Market Outlook: With the company's positive sales outlook and the dividend increase, investor confidence in its long-term growth potential is expected to strengthen, further solidifying its leadership position in the water management solutions market.
See More
