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The S&P 500 stocks with the most Buy and Sell ratings

Yahoo Finance Video

Yahoo Finance's Alexandra Semenova and Jared Blikre break down the S&P 500 stocks with the most Buy and Sell ratings.

Video transcript

BRAD SMITH: Despite a lackluster first half of the year, analysts, they continue to have unusually high number of buy ratings on S&P 500 stocks. For more, let's toss it on over to Yahoo Finance's Alexandra Semenova and Jared Blikre at the Interactive. Guys?

ALEXANDRA SEMENOVA: That's right, Brad. Recession calls are permeating Wall Street, corporate America is laying off workers, and the S&P 500 is in a bear market. You can take a look right here, down 20% year to date. But despite the downbeat outlook, analysts appear to be more confident about the companies they cover than ever.

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According to data from FactSet, stocks in the S&P 500 continue to have an unusually number of-- high number of buy ratings. More than 10,000 analyst ratings on companies in the index, 57% of those ratings represent at least a buy rating. The last time the share was at this level was in 2011. Let's take a look at the sectors right over here.

JARED BLIKRE: 2011, that was 11 years ago. I'm stating the obvious, and you don't have to assign any stories here, we brought our own. I think this is a compelling narrative here, these are the highest-- these are some of the stocks that have the highest percentage buy ratings on Wall Street. And this is a market cap view, so you're going to see Microsoft and Alphabet are the big kahunas here. Guess what, Meta used to be there, Amazon used to be there, all the big names, the big the meg-- excuse me, the mega-caps used to be there. But these are the two generals that really haven't fallen just yet. Perhaps at least in Wall Street's eyes.

ALEXANDRA SEMENOVA: Yeah, really interesting. And FactSet conducted the same research in February and we had more of those mega-cap names with buy ratings higher up on the list. So the only ones that are still here are Microsoft and Google.

And another interesting one that I want to point out is T-Mobile. You can see doing quite well compared to the other companies. If you look at it year to date, you can see it's back up from that low in January.

JARED BLIKRE: I think that-- yeah, this was about 30% increase even though it's only 15%. But it did bottom earlier in this year after the new year.

ALEXANDRA SEMENOVA: Yeah. Let's also take a look at the companies with the lowest share of buy ratings.

JARED BLIKRE: Right there, we got that sell, boom.

ALEXANDRA SEMENOVA: So obviously--

JARED BLIKRE: A couple of green names here.

ALEXANDRA SEMENOVA: Yeah. The standouts here are Progressive and Con Edison. Let's take a look at Progressive, also seeing a nice rebound.

JARED BLIKRE: Yeah, in a finance company at that. Basically geared by a higher yield curve and that benefits some of those names as well. And we have a utility, Consolidated Edison.

ALEXANDRA SEMENOVA: Oh yeah.

JARED BLIKRE: I pay them money every single month. So I'm glad-- I'm glad they're up year to date as well. That price inflation in terms of energy costs helping this stock.

ALEXANDRA SEMENOVA: Also seeing a more than 20% rebound from that low--

JARED BLIKRE: Yeah.

ALEXANDRA SEMENOVA: --earlier this year.

JARED BLIKRE: Any other names here? Let's take a look at Clorox because this is down 25%. This is a consumer staple. Let's put a three-year chart here because guess what? This was an early riser because of the pandemic boom, but you can see it's round-tripped those gains and is now down 16% over that time frame.

JULIE HYMAN: So the lesson I guess is?

JARED BLIKRE: Is?

JULIE HYMAN: I don't know, don't listen to analysts?

JARED BLIKRE: The thing is, I see it as kind of random right now. Wall Street is-- all the hype on Wall Street that we had during the pandemic has yet to fall off. So I think there needs to be a catch-down to reality. At the end of the day, we're going to have a massive rerating cycle to the downside but we just haven't seen it yet.

ALEXANDRA SEMENOVA: Yeah, it appears analysts are now playing catch-up on revising those ratings. You can see that with some of the bigger names.

JULIE HYMAN: A little late. A little late maybe. All right, thanks, guys. Really appreciate it.