Projected Target Price for AOR Analyst: $71
ETF Analysis: The iShares Core 60/40 Balanced Allocation ETF (AOR) has an implied analyst target price of $70.75, indicating a potential upside of 9.95% from its current trading price of $64.35.
Notable Holdings: Key underlying holdings such as JBS N V, Hello Group Inc, and Telephone & Data Systems Inc show significant upside potential, with target prices suggesting increases of 66.67%, 35.30%, and 33.99% respectively from their recent trading prices.
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Analyst Views on JBS
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Setting: The scene takes place in Central Texas Hill Country, where a Black Baldy cow is being prepared for auction.
Cow Characteristics: The Black Baldy breed is noted for its easy calving and attentive mothering, making it a desirable choice for cattle ranchers.
Auction Purpose: Tim Niedecken from the Jordan Cattle Auction indicates that the cow will be sold as a packer animal, meaning it is intended for slaughter.
Market Factors: The decision to sell the cow may be influenced by her declining breeding capabilities or the high market price of beef.
- Price Range Analysis: IEMG ETF's 52-week low is $47.29 per share, with a high of $74.699, and a recent trade at $74.17, indicating fluctuations near the high point that may influence investor buying decisions.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, helping to assess market trends and potential buy or sell opportunities.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting the ETF's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify significant inflows (new units created) or outflows (old units destroyed), which directly affect the ETF's underlying holdings and market dynamics.
- Investment Scale: JBS will invest $150 million to acquire an 80% stake in an Oman-based food company, involving the Oman Investment Authority, demonstrating the company's commitment to expanding in the Middle East market.
- Local Production Base: This acquisition will establish a local production base for JBS in Oman, ensuring fresh poultry supply from domestic breeders while beef and lamb processing will rely on livestock from Africa and the Middle East, enhancing supply chain stability.
- Strategic Positioning: JBS CEO Gilberto Tomazoni stated that Oman is viewed as a strategic entry point into the region, allowing the company to be closer to suppliers and end markets, with further investments planned to increase market share.
- Halal Food Expansion: This transaction is the latest move by JBS to expand its halal food operations, following its poultry processing business in Saudi Arabia, and the company plans to expand its facility in Jeddah, further solidifying its market position in the Middle East.
- Price Range Analysis: The EWZ ETF's 52-week low is $23.05 per share, with a high of $38.875, while the last trade was at $37.75, indicating stability near the high point that may attract investor interest in price fluctuations.
- Technical Analysis Tool: Comparing the recent share price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and potential buy or sell opportunities.
- ETF Unit Trading Mechanism: ETFs trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, impacting the ETF's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF shares outstanding helps identify those experiencing notable inflows (new units created) or outflows (old units destroyed), as these liquidity changes can significantly affect the performance of the underlying stocks held within the ETFs.
- Inventory Constraints: U.S. beef inventories have plummeted to their lowest levels in decades, causing beef prices to surge sharply, despite resilient consumer demand for steaks and burgers, highlighting a significant supply-demand imbalance in the market.
- Price Forecasts: Evercore ISI projects that hamburger prices will rise about 15% in the first half of 2026, while steak prices are expected to increase by 5% to 15% depending on the cut, which will impose ongoing cost pressures on consumers and the restaurant industry.
- Industry Impact: Texas Roadhouse anticipates facing nearly 150 basis points of food cost deleverage in 2026, as approximately 50% of its commodity basket consists of beef, with key steak cuts like sirloin, ribeye, and filet expected to experience mid- to high-single- to double-digit inflation.
- Market Outlook: Analysts suggest that while beef inflation may finally end by late 2026, the high beef prices in the short term will continue to impact the profitability of several restaurant companies, particularly those unable to fully pass on costs to consumers.






