Where are Analysts Most Optimistic with Their S&P 500 Stock Ratings in Q1?

With the end of the first quarter approaching, where are analysts most optimistic and pessimistic in terms of their ratings on stocks in the S&P 500? How have their views changed during the quarter?

Overall, there are 11,094 ratings on stocks in the S&P 500. Of these 11,094 ratings, 52.2% are Buy ratings, 42.9% are Hold ratings, and 4.9% are Sell ratings.

At the sector level, analysts are most optimistic on the Information Technology (60%), Health Care (59%), and Energy (59%) sectors, as these three sectors have highest percentages of Buy ratings.

On the other hand, analysts are most pessimistic on the Telecom Services (33%) and Utilities (39%) sectors, as these two sectors have the lowest percentages of Buy ratings. The Telecom Services sector also has the highest percentage of Hold ratings (66%), while the Utilities sector also has the highest percentage of Sell ratings (9%).

Company-Level Breakdown

At the company level, the 10 stocks in the S&P 500 with the highest percentages of Buy ratings and the highest percentages of Sell ratings are listed below.

Highest % of Buy Ratings in S&P 500: Top 10 (Source: FactSet)

Highest % of Sell Ratings in S&P 500: Top 10 (Source: FactSet)

Since December 31, the total number of ratings on S&P 500 companies has decreased by 0.5% (to 11,094 from 11,148).

The number of Buy ratings has increased by 5.0% (to 5791 from 5516) since December 31. All 11 sectors have witnessed an increase in Buy ratings, led by the Telecom Services (+18%), Utilities (+13%), and Consumer Staples (+11%) sectors. 

The number of Hold ratings has decreased by 5.7% (to 4763 from 5049) during this period. Ten of the 11 sectors have recorded a decrease in Hold ratings, led by the Energy (-10%) and Consumer Discretionary (-9%) sectors. 

The number of Sell ratings has decreased by 7.4% (to 540 from 583) since the start of the quarter. Eight of the 11 sectors have recorded a decrease in Sell ratings, led by the Telecom Services (-67%), Real Estate (-24%), and Energy (-21%) sectors.