The U.S. market is currently experiencing a wave of optimism, driven largely by the artificial intelligence boom led by companies like Nvidia. The first half of 2024 saw strong gains across all three major indexes, with the S & P 500, Nasdaq Composite, and Dow Jones Industrial Average all posting positive numbers. Traders are looking towards a potential soft landing for the U.S. economy, characterized by low unemployment rates, decreasing price pressures, and overall economic stability.
CNBC Pro recently screened FactSet data to identify stocks that are heavily exposed to the U.S. market and are expected to see gains in the near future. The criteria for selection included stocks with 60% or more revenue exposure to the U.S., buy ratings from at least 60% of analysts, and average analyst price targets indicating upside potential of at least 25%.
One of the stocks that met the screening criteria is MGM Resorts, a casino operator benefiting from strong travel trends to Las Vegas. Despite some weakness at older properties, MGM is expected to see continued growth. Another stock on the list is Delta Airlines, which has emerged as the most profitable U.S. airline due to its reputation for luxury and customer demand. Delta’s expansion efforts include the opening of premium-tier airport lounges to compete with rivals like United Airlines.
Analysts are optimistic about the growth potential of stocks like MGM Resorts and Delta Airlines. MGM, in particular, is expected to benefit from upward revisions in estimates driven by growth in Vegas and China. Delta’s strong consumer demand and strategic expansion efforts are likely to contribute to its continued profitability. These stocks present opportunities for investors to capitalize on the growth potential of the U.S. market.
In addition to MGM Resorts and Delta Airlines, other stocks on the list worth watching include Axon Enterprise, a manufacturer of Taser stun guns and police body cameras, and ConocoPhillips, an energy company. These companies also have significant exposure to the U.S. market and have the potential to see gains in the future.
Overall, the outlook for stocks with strong ties to the U.S. market is positive, with analysts predicting growth and investment opportunities. As the economy continues to stabilize and inflation pressures subside, these stocks are poised to benefit from the ongoing market trends. Investors looking to capitalize on the potential gains ahead in the U.S. market should consider adding these stocks to their portfolios for long-term growth potential.