From “Broker Darlings of the Dow: Apple Ranks As a Top 15 Analyst Pick” posted Monday on ETF Channel:
AMA study of analyst recommendations at the major brokerages shows that Apple Inc (AAPL) is the #4 broker pick, on average, out of the 30 stocks making up the Dow Jones Industrial Average, according to ETF Channel. Apple Inc is also a top tier analyst pick among the broader S&P 500 index components, claiming the #49 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 — 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.
My take: There’s a risk in being loved too much.