Looking ahead to this year, experts believe that some stocks that didn’t do well in 2023 might do better, while others that were successful, like Nvidia and Warner Bros., may continue to rise. In 2023, the stock market had a good time, going up by 24.2%, with a few big technology companies leading the way.
By using the CNBC Pro Stock Screener Tool, we found out which S & P 500 stocks analysts think will do the best in 2024 based on their expected prices. Many of these stocks are expected to bounce back after facing challenges in the previous year. Here’s the full list of these potential winners and why analysts are feeling positive about them.
Analysts are hopeful about some energy companies, such as Halliburton and Marathon Oil, making a comeback. Energy stocks struggled in 2023, losing 4.8%, mainly because the price of U.S. crude oil dropped by over 10%. This was due to concerns about too much oil being produced globally, especially outside of OPEC. Analysts are more optimistic about the energy sector in 2024, anticipating slower U.S. production growth, which could boost prices. If U.S. crude oil hits $100 per barrel, Morgan Stanley believes that exploration and production stocks could see a 13% increase in shareholder returns.
Despite Halliburton and Marathon Oil seeing stock price declines last year, analysts’ consensus price targets indicate over 34% upside for both stocks in the next 12 months. UBS and Morgan Stanley downgraded Marathon Oil, but still predict positive returns. Raymond James, on the other hand, maintained a strong buy rating on Marathon but adjusted its price target.
Airlines are also expected to have a good year, with Delta Air Lines and United Airlines Holdings potentially seeing more than 31% and 42% upside, respectively. Delta, in particular, is considered TD Cowen’s “best idea” for 2024. Analysts point to Delta’s strong position in international markets, ongoing efforts to improve its balance sheet, and advantages like competitive wages and a single pilot union.
Nvidia, the top-performing S & P 500 stock in 2023 with almost a 239% gain, is expected to continue its success. Analysts have a consensus price target of $641.23, indicating more than 28% upside over the next year. Despite concerns of a possible pullback, many analysts remain optimistic about Nvidia, highlighting its lower valuation compared to historical earnings estimates.
Arch Capital, a lesser-known winner from last year, is also expected to see further gains, with analysts projecting a potential 28% increase this year. Evercore ISI initiated coverage of Arch Capital with an in-line rating and a $88 price target.
Other anticipated winners for 2024 include media giant Warner Bros. Discovery, pharmaceutical company Viatris, and vaccine maker Moderna. These stocks are expected to perform well based on analysts’ predictions and positive factors influencing their respective industries.
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