ETF Channel Staff - Thursday, June 1, 11:59 AMA study of analyst recommendations at the major brokerages shows that Honeywell International Inc (HON) is the #17 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, Honeywell International Inc ranks better than the median among analyst picks for the broader S&P 500 index components, claiming the #234 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.
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.
Below is a chart of rank over time:
HON operates in the Auto Parts sector, among companies like Cummins, Inc. (CMI) which is up about 1.1% today, and Aptiv PLC (APTV) trading higher by about 1.5%. Below is a three month price history chart comparing the stock performance of HON, versus CMI and APTV.
HON is currently trading up about 0.6% midday Thursday.
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Buy (3.07 out of 4) 33rd percentile
(ranked lower than approx. 67% of all stocks covered)
Analysts Forecast: HON Price Target Based on data provided by Zacks Investment Research via Quandl.com |
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