A study of analyst recommendations at the major brokerages shows that McDonald's Corp (MCD) is the #16 broker pick, on average, out of the 30 stocks making up the Dow Jones Industrial Average, according to ETF Channel. Despite being ranked lower than the median among analyst picks of the Dow, McDonald's Corp ranks better than the median among analyst picks for the broader S&P 500 index components, claiming the #235 spot out of 500.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. For these reasons, we at ETF Channel find value to putting together these rankings, because both the top and the bottom ends of the list can often make for some interesting stock picking ideas for further research. Below is a chart of rank over time:
According to the ETF Finder at ETF Channel, MCD makes up 4.92% of the Consumer Discretionary Select Sector SPDR Fund ETF (XLY) which is trading higher by about 0.8% on the day Tuesday.MCD operates in the Hotels, Lodging, Restaurants & Travel sector, among companies like Las Vegas Sands Corp (LVS) which is up about 0.1% today, and Starbucks Corp. (SBUX) trading higher by about 1.7%. Below is a three month price history chart comparing the stock performance of MCD, versus LVS and SBUX. MCD is currently trading up about 0.3% midday Tuesday.