Nvidia gets lots of attention from investors — and for good reason: It's up 31% this year. But it only ranks tenth among S&P 500 stocks analysts think you should buy.
Ten S&P 500 stocks, including Walmart, Microsoft and Boston Scientific, win buy ratings from 91% of the analysts that cover them, says data from FactSet. This makes these stocks the most highly recommended in the S&P 500.
Winning such resounding support from analysts now is extra bullish. Why? Because analysts are more optimistic than usual. "Overall, there are 12,351 ratings on stocks in the S&P 500. Of these ratings, 55.8% are Buy ratings. The percentage of Buy ratings is above its five-year (month-end) average of 55.2%," says John Butters of FactSet.
Winning Over The Analysts
Wall Street analysts are almost unanimously in agreement that two of the 10 S&P 500 stocks are solid buys. Of the analysts' ratings on Walmart and Microsoft, 97% are buys. None are sells.
Walmart's chart is setting up nicely. Shares are up nearly 14% this year as the company has successfully leveraged its technology to take on Amazon.com and outpace Target. The stock carries and RS Rating of 73. But more importantly, analysts see Walmart returning to its double-digit earnings per share growth. Analysts are calling for the company's profit to rise 14% this year.
But cloud-computing and AI giant Microsoft is flying even higher. Shares vaulted 21% this year after taking a breather in 2024. The stock's RS Rating is now 71. Analysts are predicting double-digit earnings growth in each of the next three years: 15% in 2025, 14% in 2026 and 18% in 2027.
Walmart Not In The Clear, Yet
Analysts may be very bullish on Walmart, but that doesn't mean they're giving up on its chief rival: Amazon. So far, 94% of analysts rate shares of Amazon.com a buy, only slightly behind Walmart.
And like with Walmart and Microsoft, not a single analyst rates Amazon a sell. This year, so far, hasn't been great for Amazon shares. They're only up 6% and carry a modest RS Rating of 64. Investors are readjusting expectations coming off a banner year in 2024, when profit surged 91%. This year, analysts think the company's profit growth will decelerate to 20% and then to 14% in 2026.
So while bullishness on S&P 500 stocks is seemingly pervasive, there are pockets where it's even more concentrated.
S&P 500 With Highest Percentages Of Buy Ratings
| Company | Symbol | Ch. | Buy % | Hold % | Sell % |
|---|---|---|---|---|---|
| Walmart | WMT | 13.5% | 97% | 3% | 0% |
| Microsoft | MSFT | 21.2% | 97% | 3% | 0% |
| Boston Scientific | BSX | 9.1% | 95% | 5% | 0% |
| Amazon.com | AMZN | 5.9% | 94% | 6% | 0% |
| Diamondback Energy | FANG | -15.8% | 94% | 6% | 0% |
| Danaher | DHR | -16.0% | 93% | 7% | 0% |
| Broadcom | AVGO | 48.9% | 92% | 8% | 0% |
| Targa Resources | TRGP | -8.0% | 92% | 8% | 0% |
| VICI Properties | VICI | 9.9% | 91% | 9% | 0% |
| Nvidia | NVDA | 30.8% | 91% | 8% | 2% |
