Where Are Analysts Most Optimistic on Ratings for the S&P 500 for Q2?

With the end of the second 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 during the quarter?

Overall, there are 10,909 ratings on stocks in the S&P 500. Of these 10,909 ratings, 53.2% are Buy ratings, 42.1% are Hold ratings, and 4.7% are Sell ratings.

At the sector level, analysts are most optimistic on the Information Technology (59%), Health Care (59%), and Energy (59%) sectors, as these three sectors have the highest percentages of Buy ratings.

On the other hand, analysts are most pessimistic about the Telecom Services (38%) and Utilities (43%) sectors, as these sectors have the lowest percentages of Buy ratings. The Telecom Services sector also has the highest percentage of Hold ratings (58%), while the Utilities sector has the highest percentage of Sell ratings (7%).

Buy and Sell Ratings by Company 

At the company level, the 10 stocks in the S&P 500 with the highest percentages of Buy ratings and the highest percentages of Sell ratings are listed here:

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

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

 
Since March 31, the total number of ratings on S&P 500 companies has decreased by 2.0% (to 10,909 from 11,129).

The number of Buy ratings has decreased by 0.5% (to 5804 from 5831). However, only four sectors have witnessed a decrease in Buy ratings, led by the Consumer Staples (-6%) and Energy (-5%) sectors. Six sectors have seen an increase in Buy ratings, led by the Utilities (+10%) sector.

The number of Hold ratings has decreased by 3.6% (to 4593 from 4764). All 11 sectors have recorded a decrease in Hold ratings, led by the Materials (-12%) and Telecom Services (-12%) sectors. 

The number of Sell ratings decreased by 4.1% (to 512 from 534). Seven of the eleven sectors have a recorded a decrease in Sell ratings, led by the Utilities (-19%) and Energy (-16%) sectors. Four sectors have seen an increase in Sell ratings, led by the Telecom Services (+100%), Consumer Staples (+13%), and Information Technology (+12%) sectors.