Yesterday, we highlighted a list of the Russell 3,000’s most heavily shorted stocks. This afternoon, we’re looking at the most loved stocks by analysts in the index. To make the list, the stock has to be covered by at least 10 analysts. The 35 stocks below have at least 92% “Buy” ratings by analysts. For this analysis, ratings like “Overweight” or “Outperform” are considered “Buy” ratings as well. In the Russell 3,000, there are 12 stocks that have 100% “Buy” ratings. These include Norwegian Cruise Line (NCLH), Planet Fitness (PLNT), Paycom (PAYC), LendingTree (TREE), Vonage (VG), and Affiliated Managers (AMG). Other notables on the list of most loved stocks include Broadcom (AVGO), salesforce.com (CRM), AMC Entertainment (AMC), and Sabre (SABR).
While it’s nice to be loved by analysts, this type of bullishness in the Wall Street community doesn’t leave much room for improvement. If a stock already has 100% “Buy” ratings, it can’t benefit from any upgrade calls! Contrarians can use this list to find potential names that may be too loved at the moment. Next to each stock on the list, we’ve included its short interest levels as a percentage of float (SIPF) and year-to-date percentage change. Stocks with low short interest that have had big runs this year already may be names to avoid. If the stock has high short interest levels, it means the analyst community has quite a different take on the company than actual investors. In this regards, names like LendingTree (TREE), Paycom (PAYC), Carrizo Oil & Gas (CRZO), Cempra (CEMP), and Amsurg (AMSG) stand out.
We’ll be back tomorrow with a list of the Russell 3,000’s most hated stocks by analysts.