So, 2025 was basically the sequel nobody asked for but everyone secretly loved. Tech stocks and communication services carried the S&P 500 to a solid 16% return, because apparently we can’t quit our addiction to companies that make us scroll endlessly and argue with strangers online.
But here’s the thing about Wall Street analysts – they’re like that friend who’s always “totally sure” about their March Madness bracket. FactSet just dropped their annual “who’s hot and who’s not” report, and spoiler alert: they’re still pretty bullish on the usual suspects.
The Numbers Game
Out of nearly 13,000 stocks they analyzed, 57.5% got “Buy” ratings – the highest since February 2022. That’s like saying more than half the class is getting A’s, which either means everyone’s really smart or the grading curve is getting generous.
The winners? Information Technology (67% buy ratings), Energy (65%), and Communication Services (64%). Basically, the sectors that help us work from home, power our Netflix binges, and fuel our cars when we actually leave the house.
The losers? Consumer Staples (44% buy ratings) and Utilities (48%). Apparently, Wall Street thinks toilet paper and electricity are so last year. (Spoiler: they’re not.)
The Darlings and the Duds
Leading the pack with a perfect 100% buy rating is Qnity Electronics – a semiconductor company that’s basically the behind-the-scenes hero making all our gadgets work. It’s like the stage crew of the tech world: essential but not glamorous.
The usual tech titans are also crushing it: Microsoft (98% buy), Amazon (96%), and Meta (92%). Because nothing says “safe bet” like companies that know everything about you and sell you stuff accordingly.
On the flip side, Expeditors International is getting the cold shoulder with 44% sell ratings. Apparently, moving stuff around the world isn’t as sexy as it used to be. Who knew?
The Reality Check
Here’s the thing about analyst ratings – they’re like weather forecasts. Sometimes they’re spot-on, sometimes you get caught in the rain wearing flip-flops. These ratings are more short-term crystal ball gazing than long-term investment gospel.
The smart money? Do your own homework. Just because 98% of analysts love Microsoft doesn’t mean you should YOLO your retirement fund into it. (Though let’s be honest, it’s probably not the worst idea.)
The takeaway: 2026 looks like it’ll be another year where tech rules the roost, energy keeps chugging along, and your boring utility stocks continue being… well, boring but necessary. Sometimes the most obvious play is the right play – even if it makes for less exciting dinner party conversation.
Remember: This isn’t investment advice, it’s just Wall Street’s collective opinion served with a side of reality. Always do your own research before making any investment decisions.