XL Group Moves Up In Analyst Rankings, Passing Stryker

In a study of analyst recommendations at the major brokerages, for the underlying components of the S&P 500, XL Group plc (XL) has taken over the #141 spot from Stryker Corp. (SYK), according to ETF Channel. Below is a chart of XL Group plc versus Stryker Corp. plotting their respective rank within the S&P 500 over time (XL plotted in blue; SYK 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 XL vs. SYK:

XL,SYK Relative Performance Chart

According to the ETF Finder at ETF Channel, XL and SYK collectively make up 1.98% of the PowerShares S&P 500 Low Volatility Portfolio ETF (SPLV) which is trading higher by about 0.4% on the day Friday.

XL is currently trading up about 0.7%, while SYK is up about 0.5% midday Friday.

More from Stocks

Dow Futures Pop Despite Rising Trade War Fears

Dow Futures Pop Despite Rising Trade War Fears

Why GE's Stock Has Fallen 9% in the Last 30 Days

Why GE's Stock Has Fallen 9% in the Last 30 Days

5 Stock Picks Under $10 for Millennials

5 Stock Picks Under $10 for Millennials

3 Complicated Investing Strategies Millennials Love

3 Complicated Investing Strategies Millennials Love

Tyson Foods CEO: We Aren't Done Making Deals

Tyson Foods CEO: We Aren't Done Making Deals