Where Are Analysts Most Optimistic on Ratings for S&P 500 Companies for Q3 2019?

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

Overall, there are 10,270 ratings on stocks in the S&P 500. Of these 10,270 ratings, 51.8% are Buy ratings, 41.8% are Hold ratings, and 6.4% are Sell ratings.

At the sector level, analysts are most optimistic on the Energy (66%) sector, as this sector has the highest percentage of Buy ratings. It is interesting to note that the Energy sector is projected to report the largest earnings decline of all 11 sectors in CY 2019 (-20.9%) and the largest earnings growth of all 11 sectors in CY 2020 (30.2%).

On the other hand, analysts are most pessimistic about the Consumer Staples (40%) sector, as this sector has the lowest percentage of Buy ratings. This sector also has the highest percentage of Sell ratings (12%).

At the company level, the 10 stocks in the S&P 500 (with a minimum of three analysts submitting ratings) with the highest percentages of Buy ratings and the highest percentages of Sell ratings are listed in the charts below.

Since June 30, the total number of ratings on S&P 500 companies has decreased by 1.6% (to 10,270 from 10,435).

The number of Buy ratings has decreased by 3.1%. Eight sectors have witnessed a decrease in Buy ratings, led by the Consumer Discretionary (-7%) and Financials (-7%) sectors. Three sectors have seen an increase in Buy ratings, led by the Communication Services (+4%) sector.

The number of Hold ratings has increased by 0.3%. Four sectors have witnessed an increase in Hold ratings, led by the Industrials (+7%) and Materials (+5%) sectors. Seven sectors have recorded a decrease in Hold ratings, led by the Utilities (-11%) and Energy (-7%) sectors.

The number of Sell ratings has decreased by 0.8%. Five sectors have recorded a decrease in Sell ratings, led by the Health Care (-12%) and Consumer Discretionary (-11%) sectors. Four sectors have seen an increase in Sell ratings, led by the Financials (+16%) and Communication Services (+12%) sectors.

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

        * Minimum of 3 analysts contributing ratings

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

                     * Minimum of 3 analysts contributing ratings