Investors are understandably unclear on where to put their money amid President Trump's recent moves. But analysts are fairly certain which S&P 500 stocks to avoid.
Ten S&P 500 stocks, including Franklin Resources, VeriSign and T. Rowe Price, all carry analysts' highest percentage of sell ratings, says FactSet. Sell ratings are extremely unusual among analysts, so seeing high a high level of them on stocks should tell you something.
Analysts Really Don't Like This Industry
The asset management industry is on the top of analysts' hit lists.
Mutual fund company Franklin Resources carries a sell on 40% of its analysts' ratings on its stock. That's the highest percentage of sell ratings among any other stock in the S&P 500. Additionally, 0% of the ratings are a buy, showing strong feelings against this stock. Shares are down 2.2% this year.
The chart isn't pretty either. The RS Rating is just 26 and EPS Rating is a low 31. Analysts think the company's earnings per share will sink 11% in 2025. The stock isn't finding any support either. The company's core financial products, mutual funds, are going out of style with investors, who prefer low-cost index ETFs.
Rival T. Rowe Price is facing similar pressures. Nearly 36% of analysts' ratings on T. Rowe Price are sell ratings. Only 6% of ratings deem the stock a buy. T. Rowe's RS Rating of 19 is even lower than Franklin's. Analysts see a 2% drop in EPS coming in 2025. This stock, too, is well below its 200-day moving average. Shares are down 16% this year.
Negativity On VeriSign, Too
Analysts are also often pessimistic on payment processing firm VeriSign, too. But there's more disagreement on this one than with the asset managers' shares.
More than 40% of the ratings on Verisign are sells, equal to the percentage of buys. The chart, though, shows why there's debate. The stock is strong with an RS Rating of 94. Earnings are robust, too, with an EPS Rank of 80. Analysts see 9% EPS growth for 2025 and 6% in 2026.
But the stock has been so strong it has blown 26% past its buy point. It's up 23% this year. That means investors should wait for a better buying opportunity.
Most Sells On S&P 500 Stocks
| Company | Symbol | Hold | Sell | YTD |
|---|---|---|---|---|
| Franklin Resources | BEN | 60% | 40% | -2.2% |
| VeriSign | VRSN | 20% | 40% | 23.1% |
| Expeditors International of Washington | EXPD | 61% | 39% | 8.6% |
| T. Rowe Price Group | TROW | 59% | 35% | -16.3% |
| Paramount Global | PARA | 52% | 35% | 11.7% |
| FactSet Research Systems | FDS | 50% | 33% | -6.5% |
| Lennox International | LII | 43% | 33% | -5.2% |
| Garmin | GRMN | 60% | 30% | 5.2% |
| Consolidated Edison | ED | 65% | 29% | 20.9% |
| Southwest Airlines | LUV | 52% | 28% | 0.9% |
