Analysts have warned investors which S&P 500 stocks to not buy. But they're also pounding the table for stocks they think are screaming buys.
Ten S&P 500 stocks, including Amazon.com, Delta Air Lines and Microsoft, carry the highest percentage of buy ratings, says FactSet. At least 92% of the analysts covering all these stocks rate them a buy.
That's a resounding level of support for these stocks. Across the S&P 500, just 54.7% of analyst ratings are buys. Granted, that's slightly higher than the 54.5% of stocks bestowed with buy ratings over the past five years, says John Butters of FactSet.
But analysts are getting more bullish. "After falling to 53.6% at the end of February 2024, the overall percentage of buy ratings for the S&P 500 has increased for four straight months to 54.7% today," Butters said.
Stocks Analysts Insist You Should Buy
There's no doubt which S&P 500 stocks analysts think are the most compelling.
Amazon.com, Delta Air Lines and Microsoft win buy ratings from 95% of the analysts covering their shares. It's yet more good news for two of the giant tech stocks. Both Amazon.com and Microsoft have seen huge increases already this year, by 20.6% and 17.6%, respectively.
Take Amazon.com for instance. The online retailer is on pace to boost its adjusted earnings per share this year by 56%. And as a result, analysts think the stock will be valued at 218.23 in 12 months. That's potential upside of 19%.
Meanwhile, Microsoft analysts put its stock at 488.37 in 12 months. If that's right, it would mark a gain of more than 10%. That's remarkable for a company already valued at north of $3.6 trillion.
It's Not Just S&P 500 Tech
Don't think, though, that analysts are simply cheerleading for the Magnificent Seven stocks. They're straying from technology, too.
Only one of the S&P 500 stocks with the highest percentage of buy ratings is in information technology. The industrials sector has more highly recommended stocks than any of the other 11 S&P 500 sectors.
And that includes Delta Air Lines. Analysts think the airline's shares will surge nearly 24% in the next 12 months. That's actually a higher expected gain than what they see coming from Amazon.com or Microsoft. Meanwhile, analysts also think the company's adjusted profit per share will rise more than 56% this year.
It's important to point out analysts aren't always right and are often wrong. But with this level of conviction, at least they're in agreement on some S&P 500 stocks.
S&P 500 Stocks Analysts Love Most
They have the highest percentage of buy ratings
| Company | Symbol | Buy Rating | Upside | Sector |
|---|---|---|---|---|
| Amazon.com | 95% | 19.4% | Consumer Discretionary | |
| Delta Air Lines | 95% | 23.7% | Industrials | |
| Microsoft | 95% | 10.5% | Information Technology | |
| Zoetis | 94% | 23.8% | Health Care | |
| Schlumberger | 94% | 54.7% | Energy | |
| Mondelez International | 93% | 22.8% | Consumer Staples | |
| Axon Enterprise | 92% | 22.5% | Industrials | |
| Lamb Weston Holdings | 92% | 28.7% | Consumer Staples | |
| Alexandria Real Estate Equities | 92% | 23.1% | Real Estate | |
| Uber Technologies | 92% | 25.7% | Industrials |
