LyondellBasell Industries Takes Over #51 Spot From NextEra Energy

In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, LyondellBasell Industries NV ( LYB) has taken over the #51 spot from NextEra Energy Inc ( NEE), according to ETF Channel. Below is a chart of LyondellBasell Industries NV versus NextEra Energy Inc plotting their respective rank within the S&P 500 over time (LYB plotted in blue; NEE plotted in green): Loading+chart++2014+TickerTech.com

In forming the 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 — a popular analyst pick could mean that many sharp minds individually came to the same bullish conclusion, and therefore the stock should do well... but it could also mean that if the company makes any slight stumble, that would come as a negative surprise and cause a downward impact on the stock.

START SLIDESHOW:
The Current Top 25 Broker Analyst Picks of the S&P 500 »

From the other direction, 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 mean that of course, but: a bullish investor who can make a case for a positive future catalyst could also take the contrarian angle and recognize that there is lots of room for upside since the stock is presently 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 lists can often make for some interesting stock picking ideas for further research.

START SLIDESHOW:
15 Forgotten Giants of the S&P 500: Analysts' Current Least Favorites »

Below is a three month price history chart comparing the stock performance of LYB vs. NEE:

LYB,NEE Relative Performance Chart

According to the ETF Finder at ETF Channel, LYB and NEE collectively make up 2.93% of the PowerShares Dynamic Large Cap Value Portfolio ETF (PWV) which is trading relatively unchanged on the day Wednesday.

LYB is currently trading up about 0.5%, while NEE is up about 2.5% midday Wednesday.

If you liked this article you might like

Unfortunately Red Hot Economic Data Supports Higher Interest Rates

Unfortunately Red Hot Economic Data Supports Higher Interest Rates

The S&P 500 Has Gone Parabolic, So Hurry Up and Buy These 22 Stocks

The S&P 500 Has Gone Parabolic, So Hurry Up and Buy These 22 Stocks

Jim Cramer: Good Cyclical Stocks to Buy Are in Short Supply

Jim Cramer: Good Cyclical Stocks to Buy Are in Short Supply

A Boring Day In the Stock Market, Sorta

A Boring Day In the Stock Market, Sorta

Stocks Hold at Prior Levels After Fed Leaves Rates Unchanged

Stocks Hold at Prior Levels After Fed Leaves Rates Unchanged