See How American Express Ranks Among Analysts' Top Dow 30 Picks

A study of analyst recommendations at the major brokerages shows that American Express Co. (AXP) is the #26 broker pick, on average, out of the 30 stocks making up the Dow Jones Industrial Average, according to ETF Channel. Within the broader S&P 500, when components were ranked in terms of analyst favorites, AXP claims the #361 spot.

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.

START SLIDESHOW:
15 Forgotten Giants of the S&P 500: Analysts' Current Least Favorites »
From the other direction, 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 stumbles, that would come as a negative surprise.

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.

START SLIDESHOW:
The Top 15 Broker Darlings of the Dow: Current Top Analyst Picks »

Below is a chart of rank over time: Loading+chart++2018+TickerTech.com

According to the ETF Finder at ETF Channel, AXP makes up 4.58% of the PowerShares BuyBack Achievers Portfolio ETF (PKW) which is trading lower by about 1.7% on the day Thursday.

AXP operates in the Credit Services & Lending sector, among companies like S&P Global Inc (SPGI) which is off about 1.3% today, and Discover Financial Services (DFS) trading lower by about 2.3%. Below is a three month price history chart comparing the stock performance of AXP, versus SPGI and DFS.

AXP,SPGI,DFS Relative Performance Chart

AXP is currently trading down about 1.7% midday Thursday.

More from Stocks

Weak China Data, Starbucks, Adobe, Apple, Facebook - 5 Things You Must Know

Weak China Data, Starbucks, Adobe, Apple, Facebook - 5 Things You Must Know

What Is a Stop-Limit Order and When Should You Use It?

What Is a Stop-Limit Order and When Should You Use It?

Starbucks Shares Gain as Investor Day Highlights China Growth Ambitions

Starbucks Shares Gain as Investor Day Highlights China Growth Ambitions

Real Money Video Wrap: GE Jumps as Analysts Look to Price in Bottom

Real Money Video Wrap: GE Jumps as Analysts Look to Price in Bottom

Adobe Tops Q4 Sales Forecasts, Sees $11.1 Billion in 2019 Revenues

Adobe Tops Q4 Sales Forecasts, Sees $11.1 Billion in 2019 Revenues