Where Are Analysts Most Optimistic on Ratings for S&P 500 Companies For 2019?

With the end of the year 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 over the past few months?

Overall, there are 11,136 ratings on stocks in the S&P 500. Of these 11,136 ratings, 53.9% are Buy ratings, 40.8% are Hold ratings, and 5.3% are Sell ratings.

At the sector level, analysts are most optimistic on the Energy (66%), Health Care (59%), Communication Services (59%), and Materials (58%) sectors, as these four sectors have highest percentages of Buy ratings.

On the other hand, analysts are most pessimistic about the Consumer Staples (40%), Utilities (44%), and Real Estate (44%) sectors, as these three sectors have the lowest percentage of Buy ratings. The Real Estate sector also has the highest percentage of Hold ratings (51%), while the Consumer Staples sector has the highest percentage of Sell ratings (10%).

Since September 30, the total number of ratings on S&P 500 companies has increased by 1.6% (to 11,136 from 10,957).

Sector-Level Breakdown

The number of Buy ratings has increased by 4.2% (to 6,001 from 5,757). Ten sectors have witnessed an increase in Buy ratings, led by the Energy (+18%) sector. The Consumer Staples (-7%) sector is the only sector that has seen a decrease in Buy ratings. The number of Hold ratings has decreased by 0.6% (to 4,543 from 4,569). Seven sectors have recorded a decrease in Hold ratings, led by the Energy (-11%) sector. Four sectors have witnessed an increase in Hold ratings, led by the Information Technology (+11%) sector. The number of Sell ratings has decreased by 6.2% (to 592 from 631). Seven sectors have a recorded a decrease in Sell ratings, led by the Communication Services        (-25%), Consumer Discretionary (-19%), and Energy (-13%) sectors. Three sectors have seen an increase in Sell ratings, led by the Real Estate (+15%) sector.

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

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