Finding stocks that S&P 500 analysts agree on is rare. So when you see nearly unanimous agreement on the same stocks, that's quite a statement.
More than 93% of the recommendations on 10 S&P 500 stocks are "buys." These include Delta Air Lines, tech name Synopsys and health care play Bio-Rad Laboratories, says an analysis by FactSet. This is highly unusual. These are the highest percentages of buy recommendations of any stocks in the S&P 500.
Trying to find S&P 500 stocks to buy now is tough — in fact, many analysts are pounding the table on which stocks to sell. Short-sellers, too, are finding stocks they think are due for a fall. Buy ratings are getting a little more rare as the S&P 500 struggles.
"The percentage of buy ratings is below the five-year, month-end average of 54.2%, while the percentages of hold ratings and sell ratings are above their five-year, month-end averages of 39.8% and 6%, respectively," according to FactSet's John Butters.
S&P 500 Stocks Analysts Can Love
Only a little more than half the ratings on S&P 500 stocks are buys. So when you see big numbers of buys, pay attention.
Buys are vanishing fast as the market slips. The overall percentage of buy ratings in the S&P 500 fell over the past 13 months from a peak of 57.5% in February 2022, Butters says. And all eleven S&P 500 sectors saw their percentage of buy ratings fall from the February 2022 peak.
And yet, four stocks in the S&P 500 — GE HealthCare Technologies, Delta, Synopsys and Bio-Rad — carry 100% of their ratings as a buy, Butters says. And that's somewhat unexpected as none is from the sectors analysts are most bullish on. More than 60% of the ratings in energy and communications services are buys, making them the highest recommended sectors.
That's why it's interesting to look at a company like Delta Air Lines. All of the ratings on the stock are a buy, Butters says. And analysts aren't just chasing stocks that are already winning to deem buys. Six of the 10 stocks with the most buy ratings are actually down this year.
Shares of Delta are down more than 2% this year to 32.13. But hopes are high for a fundamental turnaround. Analysts think the stock will be worth 51.63 a share in 12 months, says S&P Global Market Intelligence. And if estimates are right, that's more than 60% upside. Driving this upside is more than just hope. Analysts say robust demand for travel will push up Delta's adjusted profit per share more than 65% this year.
Other S&P 500 Stock Buys That Analysts Agree On
Well-run circuit design company Synopsys is a big winner this year that analysts think is just getting warmed up. Shares are up more than 17% this year so far to 373.92. But 100% of analysts think the stock is still a buy, FactSet says.
And analysts are calling for the stock to be worth 424.93 a share in 12 months. That marks still more than 13% upside. And as with Delta, fundamentals back up the growth story. Analysts think the company will make $10.58 a share in 2023, up nearly 19% from 2022.
Bio-Rad, too, is a solid S&P 500 winner that analysts think has more to run. Shares of the pharmaceutical supply company are already up more than 11% this year to 470.55. But again, 100% of analysts think it's a buy.
And they think the stock will be worth 606 a share in 12 months' time, or nearly 29% more that it is now. It's a growth story, too, just not as pronounced as some of the analysts' other favorites. Adjusted earnings per share this year are seen rising nearly 9%.
Are analysts always right? Absolutely not. Should you blindly follow analysts' recommendations? Definitely not. But seeing them in such agreement on a handful of stocks is certainly worth noting.
Analysts Agree That These S&P 500 Stocks Are Buys
| Company | Symbol | Buy ratings | YTD change | Sector |
|---|---|---|---|---|
| Delta Air Lines | 100% | -2.2% | Industrials | |
| Synopsys | 100% | 17.1% | Information Technology | |
| Bio-Rad Laboratories | 100% | 11.9% | Health Care | |
| GE HealthCare Technologies | 100% | 30.8% | Health Care | |
| Targa Resources | 95% | -5.0% | Energy | |
| VICI Properties | 95% | -3.1% | Real Estate | |
| Jacobs Solutions | 95% | -5.0% | Industrials | |
| Zoetis | 94% | 13.1% | Health Care | |
| Alaska Air Group | 93% | -9.2% | Industrials | |
| Halliburton | 93% | -22.3% | Energy |
Sources: FactSet, IBD, S&P Global Market Intelligence
Follow Matt Krantz on Twitter @mattkrantz
