Snap-On Moves Up In Analyst Rankings, Passing Broadcom

In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, Snap-On, Inc. (SNA) has taken over the #100 spot from Broadcom Corp. (BRCM), according to ETF Channel. Below is a chart of Snap-On, Inc. versus Broadcom Corp. plotting their respective rank within the S&P 500 over time (SNA plotted in blue; BRCM 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 SNA vs. BRCM:

SNA,BRCM Relative Performance Chart

SNA is currently trading down about 0.8%, while BRCM is down about 1.3% midday Monday.

More from Stocks

The Biggest Mistake Tesla Short Sellers Are Making Now

The Biggest Mistake Tesla Short Sellers Are Making Now

Stocks Rise Sharply, Facebook Ignites a Nasdaq Rally

Stocks Rise Sharply, Facebook Ignites a Nasdaq Rally

Is Tesla Still Racing Against Nvidia in Autonomous Driving?

Is Tesla Still Racing Against Nvidia in Autonomous Driving?

Dunkin' Donuts CEO to Short-Seller Jim Chanos: You're Wrong

Dunkin' Donuts CEO to Short-Seller Jim Chanos: You're Wrong

Facebook Continues to Hike Capital Spending but Investors Don't Seem Worried

Facebook Continues to Hike Capital Spending but Investors Don't Seem Worried