This morning we sent a report to subscribers taking a look at the most loved and hated stocks in the S&P 500. In the report we show stocks that have the highest percentage of Buy and Sell ratings, and which stocks have seen the biggest increases and decreases in Buy and Sell ratings this year. From this morning’s report, we combined all ratings in the index to create the chart below. There are just under 11,900 individual analyst ratings on stocks in the S&P 500, which equates to just under 24 analyst ratings per stock! Of the 11,879 ratings, 5,859 are Buy ratings, 5,251 are Hold ratings, and just 769 are Sell ratings. Analysts have never been a very bearish bunch.
Below is another chart we created from this morning’s report showing the percentage of Buy ratings by sector. As shown, for the S&P 500 as a whole, 51% of all ratings are Buy ratings. Sectors that have a higher percentage of Buy ratings are Health Care, Energy, Technology and Industrials. Sectors that have a lower percentage of Buy ratings are Consumer Discretionary, Materials, Financials, Consumer Staples, Telecom and Utilities.
To view our “Most Loved and Hated Stocks” report, sign up for a 5-day free Bespoke Premium trial at this link.
Yesterday, we sent Bespoke Premium and Bespoke Institutional subscribers an updated look at S&P 500 sector weightings and how they have changed over the last 25 years. The chart below (pulled from the report) shows current sector weightings for the S&P 500. As shown, Technology is the biggest sector of the market at 19.83%. Financials ranks second at 16.79%, while Health Care ranks third at 15.55%. Consumer Discretionary, Industrials and Consumer Staples rank four, five and six, and then Energy ranks 7th with a 7.31% weighting. The bottom three sectors make up a very small portion of the S&P 500. Combined, Telecom, Utilities and Materials make up just 7% of the index, which isn’t even as big as Energy (the 4th smallest sector).
Given its recent drop as the broad market remains near all-time highs, the Energy sector has really taken a hit in terms of its market weighting. Below is a historical chart of Energy’s weighting in the S&P 500. At its peak in 2008, Energy made up nearly 17% of the index, but since then it has given up nearly 10 percentage points to fall well below its historical average (red line).
To view our “Trends in Sector Weightings Over the Last 25 Years” report, sign up for a 5-day free Bespoke Premium trial at this link.