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Record Stock-Market Rally Powered by Companies Analysts Despise

  • Analysts are least bullish on rallying defensive companies
  • Utilities shares only group trading above price targets
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Wall Street's Least-Loved Stocks Lead Market Rally

The rally that just thrust the S&P 500 Index above a record that stood for 13 months is being fueled by companies Wall Street likes least.

Utilities, consumer-staples shares and phone stocks are surging as much as four times faster in 2016 than the S&P 500 as a whole. With valuations approaching records, the groups rank among the most-hated stocks with analysts. Utilities and consumer staples are the only two industry groups in the benchmark trading at or above their average 12-month target price, data compiled by Bloomberg show.