Wall Street Analysts Broadly Try to Call Bottom in Stocks

Yesterday, it was noted that corporate insiders are trying to call a bottom in stocks with their aggressive buying amid the recent sell-off. New data today shows Wall Street analysts too are trying to call a bottom.

Over the past two sessions Wall Street analyst upgrades have dwarfed downgrades.

Data from StreetInsider.com's Ratings Insider shows an upgrade/downgrade ratio of 93.2% on Tuesday and 84.3% on Wednesday. This compares to the 100-Day moving average upgrade/downgrade ratio of around 49%.

On Monday, 49 Wall Street upgrades were noted. On Tuesday, 43 Wall Street upgrades were noted. This compares to upgrades of just 19 and 15 on Tuesday and Wednesday of last week, respectively.

It is clear that Wall Street sees value after the sharp sell-off and is trying to persuade clients to take advantage of the weakness to buy at current levels.

Today's biggest upgrade calls include Goldman Sachs' upgrade of Google (NASDAQ: GOOGL) to 'Conviction Buy' and Evercore ISI's upgrade of Amazon (NASDAQ: AMZN) to 'Buy', among others. Yesterday, saw an upgrade of Apple (NASDAQ: AAPL) and four separate upgrades of Bank of America (NYSE: BAC), among others.

While they could be correct in their assessment, others see the latest analyst action as a contrarian signal.

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