Analysts rarely put sell ratings on S&P 500 stocks. So when they do, it makes sense to listen.
Ten S&P 500 stocks — including Garmin, Expeditors International of Washington and Franklin Resources — carry the highest percentages of sell ratings, says FactSet. On average, 39% of analysts rate these stocks a sell.
And that's noteworthy now. Only 5% of the ratings on S&P 500 stocks are sells, says FactSet. And that's slightly below the five-year average of 5.4%. "The utilities sector ... has the highest percentages of sell ratings," says John Butters of FactSet.
Look Out Below
Following a 15.1% rally this year, Garmin is seen as a sell, analysts say. Sixty percent of the ratings on the stock are sells.
The chart doesn't look terrible. The stock sports an RS Rating of 76. And profits have been strong despite direct competition with Apple in sports watches. Analysts think earnings will rise 10% this year.
Analysts are also cautious on Expeditors International, a logistics firm. Nearly 50% of the ratings are sells. Shares are up 9.4%, giving them an RS Rating of 43. Wall Street sees profit falling 4% this year.
It's important to note that analysts aren't always right and are often wrong. But when they're sounding a warning, it might pay to listen.
Analysts Say These Stocks Are Sells
| Stock | Symbol | % of ratings a sell | YTD change |
|---|---|---|---|
| Garmin | GRMN | 60% | 15.1% |
| Expeditors International of Washington | EXPD | 47% | 9.4% |
| Franklin Resources | BEN | 42% | 18.4% |
| Consolidated Edison | ED | 40% | 10.4% |
| Paramount Skydance | PSKY | 38% | 88.6% |
| Illinois Tool Works | ITW | 38% | 3.0% |
| T. Rowe Price Group | TROW | 33% | -7.5% |
| Northern Trust | NTRS | 31% | 27.3% |
| Enphase Energy | ENPH | 29% | -45.6% |
| Lennox International | LII | 27% | -12.9% |
