Ecolab Takes Over #39 Spot From Owens-Illinois

In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, Ecolab, Inc. ( ECL) has taken over the #39 spot from Owens-Illinois, Inc. ( OI), according to ETF Channel. Below is a chart of Ecolab, Inc. versus Owens-Illinois, Inc. plotting their respective rank within the S&P 500 over time (ECL plotted in blue; OI 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 ECL vs. OI:

ECL,OI Relative Performance Chart

According to the ETF Finder at ETF Channel, ECL and OI collectively make up 6.48% of the Guggenheim S&P 500 Equal Weight Materials ETF (RTM) which is trading up by about 0.6% on the day Monday.

ECL is currently trading up about 0.1%, while OI is off about 0.8% midday Monday.

If you liked this article you might like

Ecolab Rebounds From Downgrade

Ecolab Rebounds From Downgrade

On Halloween, Here Are 5 Scary Stock Charts: Market Recon

On Halloween, Here Are 5 Scary Stock Charts: Market Recon

Bitcoin Is About to Have the Biggest Moment in Its History: Market Recon
Analysts' Actions -- Beazer Homes, Chevron, Ecolab, Sherwin-Williams and More

Analysts' Actions -- Beazer Homes, Chevron, Ecolab, Sherwin-Williams and More

Market Recon: Brace Yourself, Big Retail Reports This Week

Market Recon: Brace Yourself, Big Retail Reports This Week