Ratings for Energy Sector Move in Opposite Ways for S&P 500 and MSCI Europe in July

August 02, 2012 /

The Energy sector in the S&P 500 has the highest percentage of Buy ratings of any sector at 66%.

Over the past twelve months, the average percentage of Buy ratings has been 65%, which is also the highest of any sector in the S&P 500. In fact, the month-end percentage for July (66%) also marked the highest percentage of Buy ratings on companies in the Energy sector since the end of December 2011 (66%).

It is interesting to note that the Energy sector also has the highest percentage of Buy ratings of any sector in the MSCI Europe index at 60%. Over the past twelve months, the average percentage of Buy ratings has been 61%, which is also the highest of any sector in the MSCI Europe index.

However, there was a sharp difference in the revisions to ratings for companies in the Energy sector between the S&P 500 and the MSCI Europe indices during the month of July.

In the S&P 500 index, analysts increased their bullish sentiment on companies in the Energy sector. The total number of Buy ratings for companies in the sector increased by 5%, which was the highest increase of any sector. As a result, the overall percentage of Buy ratings for companies in the sector increased to 66% from 65%. This marked the fourth straight month (since March 31) that the percentage of Buy ratings on companies in the Energy sector had increased.

In the MSCI Europe index, analysts decreased their bullish sentiment on companies in the Energy sector. The total number of Buy ratings for companies in the sector fell by 4%, which was the second highest decline of any sector. As a result, the overall percentage of Buy ratings for companies in the sector dropped to 60% from 63%. This marked the first decrease in the percentage of Buy ratings for the sector after three consecutive months of increases (since March 31).

 

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