By Keren Gelfand
In Part I of "Sector Focus", we looked at the top sector to see if experts believe that it will stay on top. In today's "Sector Focus" we will see what top experts are recommending for the worst performing stock sector.
The table below consists of the 25 worst performing S&P 500 stock for the last six months; the total returns calculation for this period is taking into account also dividends.
Among the worst performers, ten companies were from the retail sector, including the worst performer Coach, Inc. (NYSE:COH), which had a negative return of -33.8% over the last six months. The second worst performer has been Whole Foods Market, Inc. (NASDAQ:WFM). This retailer of natural and organic foods has given a negative return of -28.7% in the last six months.
Will this trend continue? Let's find out if analysts and bloggers agree by analyzing their latest recommendations. Since we wanted to eliminate all biased opinions, we have taken into account only the latest recommendations from analysts and bloggers who have at least four star rating according to TipRanks, a website that ranks experts (analysts and bloggers) according to their performance.
We have summarized the latest recommendations of experts, with four or five star rating according to TipRanks, on the five U.S. largest retail companies.
The average percentage of "Buy" recommendations of 75.4% shows that top analysts are still bullish on the retail sector.
The table below presents the number of recommendations of the top bloggers according to TipRanks.
The high average "Buy" recommendation of 85.0% demonstrates that top bloggers are still very bullish on the retail sector.
In conclusion, top analysts and, especially, top bloggers are still offering much more "Buy" recommendations than Hold or Sell rating regarding the underperforming retail sector. Therefore, relying on the accuracy of their previous calls, there is a good chance that this sector will perform better in the second half of the year.