Citi compiles a list of the 11 most popular stocks in the S&P 500. Only 4 stocks earned universal Buy ratings. 7 more garnered “Buys” from 90% of the analysts covering them:
Only four stocks are universally liked:
- Snap-On (SNA),
- Staples (SPLS),
- Lorillard (LO), and
- Thermo Fisher Scientific (TMO) have Buy ratings on them,
90% of the ratings on the following stocks are Buys:
- Gilead Sciences (GILD),
- Barr Labs (BRL),
- Baxter International (BAX),
- United Technologies (UTX),
- Coca-Cola (KO),
- Schlumberger (SLB), and
- Williams Cos (WMB).
Energy and Capital Goods were the two most popular sectors, but Citi was quick to suggest that the “long energy, short financials” trade may soon draw to a close:
Contrarian trades have not worked. Investors have been better off trading pure momentum in 1H08, with traditional contrarian strategies being relatively painful. Indeed, markets have not been anticipatory with many following the trend. The “Sell Financials, Buy Energy” trade could change in 2H08 as business developments take the global growth thesis out behind the woodshed.