So, 2025 is in the rearview mirror, and guess what? Tech stocks and communication companies basically carried the entire S&P 500 to a sweet 16% return. Shocking, I know – it’s not like we haven’t seen this movie before.
But here’s the thing: Wall Street analysts are feeling pretty optimistic about 2026. Like, really optimistic. According to FactSet’s latest number-crunching, nearly 58% of stocks are getting “Buy” ratings – the highest we’ve seen since early 2022. That’s either a great sign or everyone’s drinking the same Kool-Aid.
The Popular Kids Table
Surprise, surprise – tech is still the golden child. Information Technology leads the pack with 67% of stocks getting buy ratings. Energy comes in second at 65% (because apparently oil isn’t dead yet), followed by Communication Services at 64%.
Meanwhile, Consumer Staples is sitting in the corner with only 44% buy ratings. I guess analysts aren’t too excited about toilet paper and cereal stocks. Who could have predicted that?
The Darlings and the Duds
Want to know which stock has a perfect 100% buy rating? Qnity Electronics – a semiconductor company that apparently every analyst thinks is going to the moon. Other crowd favorites include the usual suspects: Microsoft (98% buy), Amazon (96%), and Meta (92%).
On the flip side, some stocks are getting the cold shoulder. Expeditors International tops the “naughty list” with 44% sell ratings. Ouch. Other companies analysts are side-eyeing include Garmin (36% sell) and Franklin Resources (36% sell).
The Reality Check
Now, before you go YOLO-ing your life savings based on analyst ratings, remember these are the same people who probably didn’t see the last market crash coming. These ratings are more like educated guesses with fancy spreadsheets.
The smart money says do your own homework. Look at long-term trends, not just what’s hot this quarter. And maybe don’t put all your eggs in the “analysts love it” basket – diversification is still a thing, even if it’s not as exciting as chasing the next Tesla.
The Bottom Line
Tech continues to rule the roost, energy is having a moment, and consumer staples are about as exciting as watching paint dry (according to Wall Street, anyway). But remember, the market has a sense of humor – just when everyone thinks they’ve figured it out, it throws a curveball.
So whether you’re team “buy everything tech” or prefer the boring-but-steady approach, just remember: past performance doesn’t guarantee future results, but it sure makes for interesting water cooler conversations.