Want To Buy Stocks In 2025? There's One Conflicting Place To Find Winners, Analyst Says

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If you’re analyzing contrarian opportunities in 2025, this list is worth studying. It highlights names that, despite widespread skepticism, have been outperforming more popular picks.

In a year when Wall Street’s darlings have stumbled, some of the most unloved names in the S&P 500 are quietly delivering gains that put high-conviction buys to shame—and the data may challenge how investors think about analyst ratings.

In a newsletter sent Tuesday, DataTrek Research spotlighted what it called "a truly remarkable list": the 10 S&P 500 companies with the highest share of ‘Sell’ ratings from analysts.

“History and year-to-date returns suggest it is a good place to look for longs,” analysts suggested.

The Contrarian Play: Most-Hated, Yet Outperforming

“Wall Street analysts don’t put ‘Sell’ on many stocks,” Datatrek wrote.

FactSet data shows that of the 12,320 ratings issued on S&P 500 stocks, 55.7% are Buys, 38.7% are Holds, and only 5.6% are Sells.

“The percentage of Buy ratings is above its 5-year (month-end) average of 55.0%. The percentage Hold ratings is below its 5-year (month-end) average of 39.1%. The percentage of Sell ratings is also below its 5-year (month-end) average of 5.9%,” FactSet said.

Here are the 10 S&P 500 stocks with the highest percentage of Sell ratings:

CompanyBuyHoldSell
Franklin Resources, Inc. BEN0%60%40%
VeriSign, Inc. VRSN40%20%40%
Expeditors Intl. of Washington, Inc. EXPD0%61%39%
T. Rowe Price Group TROW6%59%35%
Paramount Global Class B PARA13%52%35%
FactSet Research Systems Inc. FDS17%50%33%
Lennox International Inc. LII24%43%33%
Garmin Ltd. GRMN10%60%30%
Consolidated Edison, Inc. ED6%65%29%
Southwest Airlines Co. LUV20%52%28%

As counterintuitive as it may seem, an equal-weighted portfolio of these “Sell-rated” stocks would have returned 3.89% year-to-date through March 25, 2025.

Here’s how the individual “Sell” stocks performed:

NameTotal Return (YTD)
Consolidated Edison, Inc.19.35%
VeriSign, Inc.18.78%
Paramount Global11.45%
Expeditors International of Washington, Inc.6.88%
Garmin Ltd.6.33%
Southwest Airlines Co.3.72%
Franklin Resources, Inc.-1.33%
Lennox International Inc.-3.62%
FactSet Research Systems Inc.-8.25%
T. Rowe Price Group, Inc.-14.42%
Average3.89%

That performance handily beats the -2.36% decline of the S&P 500, as tracked by the SPDR S&P 500 ETF Trust SPY, and it's miles ahead of the -10% drop in the Magnificent Seven cohort, tracked by the Roundhill Magnificent Seven ETF MAGS.

The "Buy" Darlings Didn't Deliver

Now, contrast that with the 10 most-loved stocks in the S&P 500 — the ones with the highest percentage of Buy ratings.

This basket includes mega-cap giants like Amazon.com Inc. AMZN, Nvidia Corp. NVDA, and Microsoft Corp. MSFT, all ranked in the top tier for analyst sentiment.

But the returns tell a different story. An equal-weighted portfolio of these "Buy-rated" favorites would have lost 4.44% so far in 2025.

CompanyBuyHoldSellYTD Return
UnitedHealth Group UNH97%0%3%+1.97%
Delta Air Lines DAL96%0%4%-19.34%
VICI Properties VICI96%4%0%+9.77%
Microsoft Corp. 95%5%0%-6.08%
Amazon.com Inc.95%5%0%-6.22%
Nvidia Corp.93%7%0%-10.14%
United Airlines Holdings Inc. UAL92%4%4%-18.75%
Trimble Inc. TRMB92%8%0%-0.27%
Synopsys Inc. SNPS91%9%0%-5.79%
Teledyne Technologies Inc. TDY91%9%0%+10.41%
Average-4.44%

Bottom line, the trend offers a striking insight: being unloved by analysts doesn't necessarily doom a stock to underperformance.

In fact, in a year marked by pullbacks in big tech and sector rotations, contrarian plays are quietly thriving.

For those willing to swim against the tide, Wall Street's least-favored stocks may hold the key to outperformance this year.

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Image created using artificial intelligence via Midjourney.

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