A study of analyst recommendations at the major brokerages
shows that American Express Co. (NYSE: AXP) is the #27 broker pick, on average,
out of the 30 stocks making up the Dow Jones Industrial Average, according to
ETF Channel. Within the broader S&P 500, when components were ranked in
terms of analyst favorites.
In forming this rank, the analyst opinions from the major
brokerage houses were tallied, and averaged; then, the underlying components
were ranked according to those averages. Investors often interpret analyst
opinions from different angles when companies have a low rank among analysts,
it isn’t necessarily the case that investors should conclude that the stock
will perform poorly. It can, of course, but a bullish investor could also take
the contrarian angle and read into the data that there is lots of room for
upside because the stock is so out of favor. Read more.
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