Michael Kantro: Performance of buying top-rated stocks and shorting lowest-rated by analyst buy ratings

Michael Kantro: Performance of buying top-rated stocks and shorting lowest-rated by analyst buy ratings
Performance of top and bottom stock ratings

A chart shows how buying the top-rated stocks in each sector and shorting the lowest-rated, based on the percentage of buy ratings from sell-side analysts, would perform.

Michael Kantro presented this strategy, noting the ratings are determined by the proportion of buy ratings for each stock from analysts.

Kantro recently noted that the S&P 500 Macro Select index is up about 30% year to date. He also highlighted that corporate margins are rising due to both cyclical and secular factors. These observations provide context for his focus on sector-based stock selection strategies.

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