As we approach the second half of 2024, analysts from top investment firms are optimistic about the stock market’s performance. The S & P 500 has already seen a significant rally of over 15%, with record-breaking levels being achieved. Investors are particularly interested in artificial intelligence-related stocks like Nvidia, driving the market higher. Goldman Sachs, Evercore ISI, and Citi have all raised their year-end forecasts for the S & P 500, with expectations set for continued gains. In light of this positive outlook, CNBC Pro conducted a screening to identify stocks in the S & P 500 that are expected to outperform in the coming months.
Stocks with Potential Upside
One of the stocks that made the list of potential outperformers is Warren Buffet’s Berkshire Hathaway. Analysts project a 20.8% increase in its stock price over the next 12 months. The Class B stock has already seen a 13% increase year-to-date, with three out of four analysts rating it as a buy or strong buy. The upgrade from Argus in May highlighted Berkshire Hathaway’s attractive valuation and strong financial position, emphasizing its potential for growth.
Disney is another stock that analysts are bullish on for the second half of the year. The company’s consensus price target suggests a nearly 25% rally in the next 12 months. Analysts point to the healthy demand trends in Disney’s parks segment as a positive indicator. Around 75% of analysts covering the stock recommend a buy or strong buy rating, with Disney shares already up by 12% in 2024.
Potential in the Energy Sector
Despite the overall positive performance of the energy sector this year, certain energy stocks have been identified as having the potential to outperform in the coming months. Coterra Energy, for example, is projected to rally by 26.5% despite only seeing a modest increase of less than 5% in 2024. UBS has named Coterra Energy as one of its favorite energy and utilities picks, with two-thirds of analysts giving the stock a strong buy or buy rating.
Another energy giant, Chevron, is also expected to outperform in the second half of the year. The stock is currently trading at a forward P/E ratio below its 5-year average, indicating the potential for growth ahead. Chevron’s recent acquisition of Hess for $53 billion and its ongoing competition with Exxon Mobil over offshore oil assets in Guyana are seen as positive drivers for its stock. Despite only a 2.8% increase year-to-date, analysts are optimistic about Chevron’s future performance.
As we head into the second half of 2024, several stocks across different sectors show promise for strong performance. With analysts bullish on these picks and expectations of continued market gains, investors may find opportunities for growth in the coming months.