The average stock in the S&P 500 is down slightly more than 3% since the May 19th peak. We released a B.I.G. Tips report this morning highlighting the performance of stocks based on various fundamental and technical characteristics. One of the characteristics we analyzed was analyst recommendations. When we broke the S&P 500 into deciles (50 stocks in each decile) based on analyst ratings for stocks, we found that those most favored by analysts have held up the best during the declines, while stocks least favored have performed the worst. As shown below, the decile of stocks with the highest recommendations are down an average of 1.81% since 5/19, while the decile of stocks with the lowest recommendations are down 6.39%.
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