A study of analyst recommendations at the major brokerages shows that Chevron Corporation (CVX) 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, Chevron Corporation ranks better than the median among analyst picks for the broader S&P 500 index components, claiming the #243 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, CVX makes up 12.90% of the Energy Select Sector SPDR Fund ETF (XLE) which is trading up by about 0.1% on the day Friday.CVX operates in the Oil & Gas Refining & Marketing sector, among companies like Exxon Mobil Corp. (XOM) which is off about 0.4% today, and Statoil ASA (STO) trading lower by about 0.5%. Below is a three month price history chart comparing the stock performance of CVX, versus XOM and STO. CVX is currently trading trading flat midday Friday.