As we approach the second half of the year, Wall Street analysts are predicting that certain stocks will outperform the market. Despite the S&P 500 already rallying more than 15% in 2024, there are some companies that are expected to continue to see gains. Investment firms like Goldman Sachs, Evercore ISI, and Citi have raised their year-end forecast for the S&P 500, with Goldman Sachs setting a price target of 5,600. With this optimistic outlook, CNBC Pro screened for stocks in the S&P 500 that have the potential to outperform in the coming months.
Stocks with Significant Upside Potential
One of the standout companies on the list is Warren Buffet’s Berkshire Hathaway. Analysts project that the Class B stock could rise by 20.8% over the next 12 months, and it is already up around 13% year to date. This positive outlook is supported by the fact that three out of four analysts covering the stock rate it as a buy or a strong buy. Additionally, Argus upgraded Berkshire Hathaway to a buy in May, citing its attractive valuation and strong financial position.
Disney is another stock that analysts are optimistic about heading into the second half of the year. With a consensus price target suggesting a potential rally of nearly 25% in the next 12 months, analysts are bullish on the company’s prospects. Guggenheim highlighted the healthy demand trends for Disney’s parks segment as a key driver of growth. Around 75% of analysts covering the stock have a strong buy or buy rating, and shares are already up 12% in 2024.
Energy Stocks Expected to Shine
Despite the energy sector underperforming the broader market this year, there are some energy stocks that analysts believe have significant upside potential. One such company is Coterra Energy, which is up less than 5% year to date but is forecasted to rally by 26.5%. UBS has named Coterra Energy as one of its favorite energy and utilities picks, and two-thirds of analysts covering the stock have a strong buy or buy rating.
Chevron, an oil giant, is also expected to outperform in the second half of the year. Trading at a forward P/E ratio below its 5-year average, Chevron is seen as having room for growth. The company’s recent acquisition of Hess for $53 billion and its ongoing fight with Exxon Mobil over oil assets in Guyana are seen as positive developments. While Chevron shares have only gained 2.8% year to date, analysts believe there is potential for further upside.
As we look ahead to the second half of the year, there are several stocks across different sectors that analysts believe have the potential to outperform the market. Investors may want to consider adding these stocks to their portfolios based on the positive outlook from Wall Street analysts.
Leave a Reply