Why Wall Street Issues So Many Buy Recommendations
The reasons are not entirely nefarious.
Wall Street analysts are far likelier to praise stocks than to bury them. According to FactSet, which tracks the Street’s proclamations, 55% of S&P 500 stock ratings are Buys, 38% are Holds, and 7% are Sells. The three highest-ranking analysts on a competitive site, tipranks.com, are even more optimistic. On average, those investment professionals score 79% of the equities that they track as Buys, 19% as Holds, and 2% as Sells.