Where Are Analysts Most Optimistic on Ratings for S&P 500 Companies Heading Into 2026?

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?

Overall, there are 12,696 ratings on stocks in the S&P 500. Of these ratings, 57.5% are Buy ratings, 37.7% are Hold ratings, and 4.8% are Sell ratings. The percentage of Buy ratings is above its the 5-year (month-end) average of 55.5%. On the other hand, the percentage Hold ratings is below its 5-year (month-end) average of 38.8% and the percentage of Sell ratings is below its 5-year (month-end) average of 5.7%.

It is interesting to note that if 57.5% is the final percentage of Buy ratings for the month, it will tie the mark with February 2022 (57.5%) for the highest (month-end) percentage of Buy ratings going back to at least 2010.

At the sector level, analysts are most optimistic on the Information Technology, Energy, and Communication Services sectors, as these three sectors have the highest percentages of Buy ratings. On the other hand, analysts are most pessimistic on the Consumer Staples and Utilities sectors, as these two sectors have the lowest percentages of Buy ratings. The Consumer Staples sector also has the highest percentage of Hold ratings and the highest percentage of Sell ratings.

How accurate were the sector-level Buy ratings one-year ago (December 31, 2024) in terms of predicting price performance almost one year later?

Overall, the price of the S&P 500 has increased by 15% since December 31, 2024 (to 6774.76 from 5881.63). Two of the three sectors that have recorded the largest price increases since December 31 are also two of the three sectors that had the highest percentages of Buy ratings on December 31: Communication Services and Information Technology. On the other hand, only one of the three sectors that have recorded the smallest price increases since December 31 are also one of the three sectors that had the lowest percentages of Buy ratings on December 31: Consumer Staples.

The ten S&P 500 companies with the highest percentages of Buy ratings and Sell ratings (with a minimum of 3 ratings) can be found on page 8 of the Earnings Insight report and in the chart below.

The FactSet Earnings Insight report will not be published on December 26 or January 2. The next edition of the report will be published on January 9.

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