As we approach the second half of 2024, the stock market continues to show signs of strength with the S & P 500 rallying more than 15% and reaching record levels. Investors are keen on artificial intelligence-related stocks such as Nvidia, and top investment firms like Goldman Sachs, Evercore ISI, and Citi are optimistic about the market’s performance. Goldman Sachs has even raised its year-end S & P 500 price target to 5,600, indicating a positive outlook for the market moving forward.
In light of the positive market outlook, CNBC Pro conducted a screen for names in the S & P 500 that are forecasted to outperform in the latter half of the year. These stocks not only have analyst price targets with 20% or more upside potential but are also already in the green for 2024, signaling a strong foundation for growth. It’s essential to note that the price targets provided are 12-month estimates, giving investors a roadmap for potential returns in the coming months.
Among the top stocks to watch for in the second half of 2024 is Warren Buffet’s Berkshire Hathaway. The Class B stock is projected to rise by 20.8% over the next 12 months and has already gained around 13% year to date. With the majority of analysts rating it as a buy or a strong buy, Berkshire Hathaway stands as a solid pick for investors looking for long-term growth opportunities.
Disney is another standout stock, with analysts forecasting nearly a 25% rally in the next 12 months. The consensus among analysts is optimistic, citing healthy demand trends in Disney’s parks segment. Around three-quarters of analysts covering the stock have a strong buy or buy rating, further solidifying its position as a top pick for the second half of the year.
In the energy sector, while underperforming the broader market, there are opportunities for growth. Coterra Energy, despite being up less than 5% in 2024, is expected to rally by 26.5% according to analysts. UBS has named it as one of its favorite energy and utilities picks, highlighting its potential for growth in the coming months.
Chevron, a major player in the energy industry, is trading at a forward P/E ratio below its 5-year average, signaling potential growth ahead. Engaged in a battle with Exxon Mobil over offshore oil assets in Guyana and acquiring Hess for $53 billion earlier in the year, Chevron is positioned for growth in the second half of 2024. Despite only a 2.8% increase year to date, Chevron remains a strong contender in the energy sector.
The second half of 2024 presents several opportunities for investors to capitalize on the market’s upward momentum. By carefully selecting stocks with significant upside potential and strong fundamentals, investors can position themselves for success in the months ahead. It is essential to conduct thorough research and consider your investment goals before making any decisions in the ever-evolving stock market.
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