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

With the start of the third quarter approaching, where are analysts most optimistic and pessimistic in terms of their ratings on stocks in the S&P 500?

Overall, there are 10,981 ratings on stocks in the S&P 500. Of these ratings, 54.8% are Buy ratings, 39.6% are Hold ratings, and 5.6% are Sell ratings. The percentage of Buy ratings is above the 5-year (month-end) average of 54.2%, while the percentages of Hold ratings and Sell ratings are below their 5-year (month-end) averages of 39.7% and 6.1%, respectively.

At the sector level, analysts are most optimistic on the Energy (64%), Communications Services (62%), and Information Technology (60%) sectors, as these three sectors have the highest percentages of Buy ratings. On the other hand, analysts are most pessimistic on the Consumer Staples (44%) sector, as this sector has the lowest percentage of Buy ratings. The Consumer Staples sector also has the highest percentage of Hold ratings (46%) and the highest percentage of Sell ratings (10%).

The ten S&P 500 companies with the highest percentages of Buy ratings and Sell ratings can be found below.

After declining from March 2022 through February 2023, the overall percentage of Buy ratings has increased over the past four months (to 54.8% from 53.2%). At the sector level, ten of the eleven sectors have seen an increase in their percentage of Buy ratings since February 2023, led by the Financials (to 53% from 47%) and Real Estate (to 59% from 55%) sectors. On the other hand, the Consumer Discretionary sector is the only sector that has seen a decrease in its percentage of Buy ratings (to 54% from 55%) during this time.

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