Don’t buy the stocks analysts love.
Don’t buy the ones they hate, either.
Those are conclusions from my 27-year study of the four stocks analysts most adore at the beginning of each year and the four stocks they most despise.
The average return on the analysts’ darlings has been 8.2%. For the despised stocks it has been 6.7%. Both figures are well below the Standard & Poor’s 500 Total Return Index, at 12.8%.
In 27 years, the analysts’ adored stocks have beaten their despised ones 15 times. Eleven times the despised ones have done better. And one year was a tie.
Only eight times out of 27 have the analysts’ favorites beaten the S&P 500.
Winning streak
Despite the embarrassing long-term results, the analysts are on a winning streak lately. Their adored stocks have beaten their scorned stocks three years in a row. In 2025, the analysts’ top picks also bested the S&P, 33.0% to 17.9%.
A New York biotech stock, Axsome Therapeutics Inc. (AXSM), powered the analysts’ performance last year. Axsome, which is concentrating on diseases of the central nervous system, returned 116% for the year.
The airlines beloved by the analysts also showed gains. United Airlines Holdings Inc. (UAL) and Delta Air Lines Inc. (DAL) rose 15% and 16%, respectively.
The analysts’ only losing stock was Arcellx Inc. (ACLX), a biotech company based in Redwood, Calif. It fell about 15%.
What about the stocks analysts hated when 2025 began? The most despised was ZIM Integrated Shipping Services (ZIM). Yet ZIM managed better than a 26% gain for the year.
The analysts were correct to be bearish on Ginkgo Bioworks Holdings Inc. (DNA), which fell more than 15%. AMC Networks Inc. (AMCX) declined about 4%. CNX Resources Corp. (CNX) was close to unchanged.
All in all, the despised stocks eked out a 1.9% gain.
Newly adored
What stocks do analysts unanimously adore now? According to Zacks Investment Research Inc., the most popular stock is Amer Sports inc. (AS), with 15 buy recommendations and no dissents.
Based in Helsinki, Finland, Amer Sports manufactures sporting equipment and clothing under brands that include Wilson, Arc’teryx, Atomic and Peak Performance. It is majority-owned by Anta Sports of China.
After four years of losses, Amer Sports broke into the black in 2024 and increased its profit in 2025. Analysts expect more growth.
Next most popular, with 14 buys and no holds or sells, is Credo Technology Group Holding Ltd. (CRDO). Based in Grand Cayman, the company provides equipment to speed up data transmission within data centers.
Credo has a market value of $27 billion even though revenue in its latest fiscal year was only about $2.4 billion. It is growing fast, and the stock sells for more than 100 times earnings.
Next up, with 13 buy recommendations, is nVent Electric Plc (NVT), based in London. It’s a more established company, with profits in nine of the past 10 years. It makes equipment to safeguard electronic processes, manage temperatures, provide grounding and so on.
Tied with nVent in analysts’ esteem is Krystal Biotech Inc. (KRYS), with headquarters in Pittsburgh. It, too, has 13 recommendations and no dissenting opinions, according to the Zacks tally. Krystal has a proprietary platform for gene therapy.
After seven unprofitable years, Krystal turned profitable in 2023 and profits are growing rapidly.
Most despised
The stock analysts hate most at present is Commonwealth Bank of Australia (CMWAY), the largest bank in that country. Of seven analysts who follow it, six rate it a “sell.” I would agree that 25 times earnings is a lot to pay for a slow-growing bank. But the stock doesn’t seem so terrible to me.
Next-most scorned is Cricut Inc. (CRCT), a company in South Jordan, Utah, that helps people create personalized cards, mugs, T-shirts and the like. The company has a strong balance sheet and is nicely profitable. But five-year earnings growth is poor, and growth is what many analysts care about most.
Then comes Swatch Group (SWGAY), a Swiss company that makes watches at several price points. Brands include Omega, Tissot, Breguet and Swatch. The company’s earnings plunged last year, and 10-year revenue growth is slightly negative.
Finally, there’s Beach Energy Ltd. (BCHEY), another Australian outfit. It’s an oil and gas producer based in Adelaide. The stock has lost close to half of its value in the past five years, and the company lost money in fiscal 2024 and ’25.
Contrarianism runs in my bloodstream, so I’m inclined to think the despised stocks will beat the adored ones in 2026. I’ll report the results in January 2027.
