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Looking ahead to this year, analysts say some of 2023’s losers could rise to the top, while stocks of last year’s proven winners, such as Nvidia and Warner Bros., could continue to rise. I think there is. Stocks rose in 2023, breaking the bearish sentiment that weighed on investors early last year. The S&P 500 ended 2023 with a 24.2% gain, reaching a near new record high, as just a few mega-cap tech stocks led the market’s historic rally. Using the CNBC Pro Stock Screener Tool, we looked for the S&P 500 stocks that analysts predict will perform best in 2024 based on consensus price targets. Many stocks are expected to recover after struggling this year. Below is the complete list of winners and why analysts are so bullish on their names. Analysts are optimistic about a recovery in some energy stocks, including oil and gas companies Halliburton and Marathon Oil. Several energy stocks saw their share prices fall last year. The sector as a whole will fall 4.8% in 2023 after last year ended down more than 10% on concerns that U.S. oil prices were oversupplying the market due to historic non-OPEC oil production. I started late. Analysts are more optimistic about the sector this year, with expectations that U.S. production growth will slow this year, leading to higher prices. Morgan Stanley believes that if U.S. oil prices reach $100 a barrel, shareholder returns for exploration and production stocks will rise to 13%. But that’s still a bullish view. Halliburton’s stock price fell 8.1% last year, and Marathon Oil’s stock price fell as well, dropping 10.9%. Analyst consensus price targets for both stocks indicate an increase of more than 34% over the next 12 months from Friday’s closing price. UBS downgraded Marathon Oil from buy to neutral on December 14, and Morgan Stanley also downgraded the stock from overweight to equal weight. Both companies have lowered their price targets, but still expect upside. Meanwhile, Raymond James maintained a strong buy rating on Marathon, but lowered his price target in mid-December. Analysts say the airline industry will also have a strong year. The companies’ average price targets suggest that Delta Air Lines and United Airlines Holdings’ stock could rise more than 31% and 42%, respectively. Delta Air Lines is TD Cowen’s “best idea” for 2024, the airline said in a Dec. 21 note on its overall outlook for the airline. The company’s stock ended last year up about 22.4%. “The airline is well positioned in international markets and should continue to outperform domestic markets,” analyst Helane Becker said in a note. “Delta continues to focus on improving its balance sheet. ” he said. Becker added that Delta’s SkyMiles program will continue to advance as the American Express card continues to gain acceptance in international markets. Another tailwind, the analyst said, is that Delta pays wages in line with industry averages and has only one union for pilots, compared to other heavily unionized airlines. The company says this is an advantage. Nvidia, the S&P 500’s winning stock in 2023 and up about 239%, is also expected to have more runway. Analysts have a $641.23 price target for the chipmaker, implying an upside of more than 28% over the next 12 months. Most analysts are bullish on the stock, including Bernstein senior analyst Stacey Rasgon. He told CNBC on Wednesday that Nvidia stock is cheaper than it has been in a decade, given its sky-high earnings expectations. But some think AI-powered stocks will fall. Last year’s lesser-known winner, insurance company Arch Capital, could also benefit even more. Analysts have a consensus price target of $95.20 for the stock, suggesting the stock could rise about 28% this year and 18.3% in 2023. Evercore ISI initiated coverage of Arch Capital on December 14th with an inline rating and $88. price target. Other expected winners in 2024 include media giant Warner Bros. Discovery, pharmaceutical company Viatris and vaccine maker Moderna.
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