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Market breadth expands with 118 S&P 500 stocks nearing their 52-week highs, signaling significant market momentum.
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Amid the market surge, investor attention remains fixated on mega-cap tech stocks that have been pivotal in the S&P 500’s upward trajectory.
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We delve into the top stocks commanding the highest buy ratings among S&P 500 constituents, based on recent data.
Currently, 118 stocks are trading at or near their yearly highs, hinting at a market uptrend that may be nearing its peak.
This surge marks the largest number of stocks hitting annual highs in the last three years, showcasing a significant improvement in market breadth.
Despite the broader participation in the market rally, the allure of large-cap tech stocks persists, driving the index’s overall growth.
The top tech giants contributed to 37% of the S&P 500’s 10.2% gain in the first quarter, a notable shift from the prior year when they accounted for around two-thirds of the index’s growth.
Currently, among S&P 500 stocks, buy ratings make up 53.8%, while 40.5% are rated as holds, and 5.7% as sells.
- Stocks with the highest percentage of buy ratings include:
- Delta Air Lines (NYSE:): 96%
- Targa Resources (NYSE:): 95%
- Amazon (NASDAQ:): 95%
- Microsoft (NASDAQ:): 95%
Leading the sell ratings are:
- Expeditors International of Washington (NYSE:): 53%
- T Rowe (NASDAQ:) Price: 50%
- Robert Half (NYSE:): 50%
- Franklin Resources (NYSE:): 40%
- Hormel Foods Corporation (NYSE:): 38%
- Illinois Tool Works (NYSE:): 38%
- Paramount Global Class A (NASDAQ:): 38%
Let’s scrutinize some of the top-rated stocks. To do so, we rely on InvestingPro for detailed insights into each company.
Delta Air Lines (DAL)
Established in 1924, Delta Air Lines is a major U.S. airline based in Atlanta, Georgia. It boasts extensive transatlantic routes, surpassing its peers in European and Asian destinations, and stands as the second largest U.S. carrier in Latin America following American Airlines (NASDAQ:).
With a dividend yield of +0.84%, Delta Air Lines remains a competitive player in the industry.
Projected to announce results on April 10, the airline anticipates an 8.70% revenue growth.
Looking forward, Delta Air Lines shows potential for margin expansion in FY24 and FY25, attributed to revenue growth and cost-efficiency measures starting in the latter half of 2024.
Over the past year, the stock has surged by +40.21% and boasts an impressive 96% buy rating, with a market potential at $53.69, while InvestingPro’s models forecast a higher target of $56.67.
Amazon (AMZN)
Founded in 1994, Amazon is an American e-commerce giant headquartered in Seattle, Washington. Pioneering online retail, it holds the title of the world’s most valuable retail brand.
Anticipated to announce earnings on April 25, Amazon projects an EPS growth of +45.2% and a revenue spike of +11.6% for 2024.
The stock has surged by +76.14% over the last year, backed by a strong 95% buy rating, with a market projection at $206.32.
Schlumberger (SLB)
As the globe’s largest oilfield services provider, Schlumberger’s operations span across major hubs in Houston, Paris, London, and The Hague, with roots tracing back to 1926.
Offering a dividend yield of +2.01%, Schlumberger gears up for its earnings release on April 19, forecasting an EPS growth of +19.4% and revenue uptick of +12.7% for 2024.
With a commendable 94% buy rating, Schlumberger exemplifies resilience, exhibiting a share growth of +6.86% over the last year, with a market potential at $67.36.
Lamb Weston (LW)
Established in 1950, Lamb Weston is a prominent American food processing firm renowned for its production of frozen French fries. Headquartered in Eagle, Idaho, the company maintains its stronghold in the market.
On May 31, Lamb Weston plans to distribute a dividend of $0.36, sustaining its commitment to shareholders.
