So, 2025 was basically the tech bros’ victory lap again. The S&P 500 strutted to a 16% return, powered by the usual suspects: Communication Services and Information Technology. Shocking, I know.
But here’s where it gets interesting for 2026. FactSet just dropped their annual “who’s hot and who’s not” report, analyzing nearly 13,000 U.S. stocks. And surprise, surprise – analysts are feeling pretty optimistic. A whopping 57.5% of stocks got “Buy” ratings, the highest since February 2022. Translation: Wall Street thinks the party’s not over yet.
The Popular Kids Table
Three sectors are basically the cool kids everyone wants to sit with:
- Information Technology (67% Buy ratings): Because apparently we haven’t had enough AI hype yet
- Energy (65% Buy): Oil’s having a moment, who would’ve thought?
- Communication Services (64% Buy): Meta, Google, and friends keep printing money
Meanwhile, Consumer Staples and Utilities are sitting at the reject table with only 44% and 48% Buy ratings respectively. Apparently, boring but reliable isn’t sexy anymore.
The Teacher’s Pets
Want to know which stock has a perfect 100% Buy rating? Qnity Electronics – a semiconductor play that returned 26% last year. Analysts think it’s got another 23% upside. Not bad for a company most people can’t pronounce.
The rest of the honor roll reads like a tech bro’s dream portfolio: Microsoft (98% Buy), Amazon (96%), and Meta (92%). Shocking that the companies printing money faster than the Federal Reserve are popular with analysts.
The Detention Hall
On the flip side, some stocks are getting the cold shoulder. Expeditors International leads the “most likely to disappoint” list with 44% Sell ratings. Garmin’s also struggling – apparently, GPS watches aren’t as exciting as they used to be.
T. Rowe Price managed the impressive feat of 33% Sell ratings and exactly 0% Buy ratings. That’s like being the only person not invited to the party – ouch.
The Reality Check
Here’s the thing about analyst ratings: they’re like weather forecasts – sometimes right, often wrong, but always confident. These ratings are more short-term crystal ball gazing than long-term wisdom.
The smart money? Do your own homework. Just because 98% of analysts love Microsoft doesn’t mean it’s right for your portfolio. And just because everyone’s dumping on T. Rowe Price doesn’t mean it’s a terrible company.
The real takeaway? Tech’s still the darling, energy’s having a renaissance, and boring utility stocks are about as popular as a root canal. Whether that’s smart or just herd mentality… well, that’s what makes markets interesting.
Remember: when everyone’s zigging, sometimes the smart money zags. But hey, don’t blame me if you bet against the house and lose – I’m just here to translate Wall Street’s fancy charts into plain English.