Most of analysts’ favored stocks fell last year.
After U.S. stocks last year posted the worst performance since 2008, you might be skeptical of companies favored by Wall Street analysts, who seem to be perennially optimistic. But having a lot of “buy” ratings from analysts means support from brokers and advisers, which could help share prices.
To be sure, sell-side analysts shy away from making clear recommendations to sell a stock. Among the S&P 500 SPX, +0.13% there is not a single company with majority “sell” or equivalent ratings among analysts polled by FactSet.