Broadcom Takes Over #161 Spot From eBay

In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, Broadcom Corp. (BRCM) has taken over the #161 spot from eBay Inc. (EBAY), according to ETF Channel. Below is a chart of Broadcom Corp. versus eBay Inc. plotting their respective rank within the S&P 500 over time (BRCM plotted in blue; EBAY 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 BRCM vs. EBAY:

BRCM,EBAY Relative Performance Chart

According to the ETF Finder at ETF Channel, BRCM and EBAY collectively make up 3.01% of the Guggenheim S&P 500 Equal Weight Technology ETF (RYT) which is trading lower by about 0.5% on the day Monday.

BRCM is currently trading off about 0.5%, while EBAY is off about 0.3% midday Monday.

More from Stocks

Dow Falls, S&P 500 Trades Lower as P&G and Apple Slump

Dow Falls, S&P 500 Trades Lower as P&G and Apple Slump

Will Tesla Stock Tumble 33% to $195?

Will Tesla Stock Tumble 33% to $195?

Tesla Is Crowdsourcing its Newest AI Features

Tesla Is Crowdsourcing its Newest AI Features

AAP Exclusive: Cramer Says The President is No Longer on the Side of the Bulls

AAP Exclusive: Cramer Says The President is No Longer on the Side of the Bulls

Video: Jim Cramer on Apple, Procter & Gamble, Nucor and Acacia Communications

Video: Jim Cramer on Apple, Procter & Gamble, Nucor and Acacia Communications