With the end of the third quarter today, 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 10,929 ratings on stocks in the S&P 500. Of these 10,929 ratings, 52.6% are Buy ratings, 41.7% are Hold ratings, and 5.7% are Sell ratings.
Since June 30, the total number of ratings on S&P 500 companies has increased by 0.3% (to 10,929 from 10,902). The number of Buy ratings has decreased by 1.1% (to 5747 from 5809). The number of Hold ratings has increased by 0.9% (to 4554 from 4514). The number of Sell ratings has increased by 8.7% (to 628 from 578).
At the sector level, analysts are most optimistic on the Energy (59%), Health Care (58%), and Materials (58%) sectors, as these sectors have the highest percentages of Buy ratings.
On the other hand, analysts are most pessimistic about the Consumer Staples (42%), Utilities (44%), and Real Estate (44%) sectors, as these sectors have the lowest percentages of Buy ratings. The Consumer Staples sector also has the highest percentage of Sell ratings (10%).
In the newly formed Communication Services sector, 56% of the ratings on companies in this sector are Buy ratings, which is the fifth highest percentage in the index. Within this sector, Alphabet (GOOGL & GOOG) has the highest percentage of Buy ratings at 91%. However, 7% of the ratings on companies in this sector are Sell ratings, which is the third highest percentage in the index. Within the sector, News Corp. (NWS) has the highest percentage of Sell ratings at 50%.
Overall for the S&P 500, the ten stocks with the highest percentages of Buy ratings and the highest percentages of Sell ratings are listed below.
|
Company |
Buy |
Hold |
Sell |
Total |
|
Amazon.com, Inc. |
96% |
4% |
0% |
100% |
|
UnitedHealth Group Incorporated |
92% |
4% |
4% |
100% |
|
Alphabet Inc. Class A |
91% |
9% |
0% |
100% |
|
Alphabet Inc. Class C |
91% |
9% |
0% |
100% |
|
salesforce.com, inc. |
90% |
10% |
0% |
100% |
|
Mastercard Incorporated Class A |
90% |
8% |
3% |
100% |
|
Alexion Pharmaceuticals, Inc. |
90% |
10% |
0% |
100% |
|
Visa Inc. Class A |
90% |
8% |
3% |
100% |
|
Delta Air Lines, Inc. |
89% |
11% |
0% |
100% |
|
Equinix, Inc. |
89% |
11% |
0% |
100% |
Highest Sell Ratings % in S&P 500: Top 10 (Source: FactSet)
|
Company |
Buy |
Hold |
Sell |
Total |
|
Campbell Soup Company |
17% |
33% |
50% |
100% |
|
VeriSign, Inc. |
0% |
50% |
50% |
100% |
|
News Corporation Class B |
0% |
50% |
50% |
100% |
|
Torchmark Corporation |
9% |
45% |
45% |
100% |
|
Consolidated Edison, Inc. |
6% |
50% |
44% |
100% |
|
Public Storage |
6% |
53% |
41% |
100% |
|
Southern Company |
19% |
43% |
38% |
100% |
|
Varian Medical Systems, Inc. |
27% |
36% |
36% |
100% |
|
Franklin Resources, Inc. |
0% |
67% |
33% |
100% |
|
Apache Corporation |
25% |
43% |
32% |
100% |