David Kostin, chief strategist of the New York bank, explained in a report that “the increase in profit estimates” of quotes is the main “driver of the revision.”
He S&P 500 is having a great 2024. largest stock index in the world rise a little more than a 4% so far this yeara performance that has allowed him to break 5,000 points for the first time in history and also score all-time highs successively in recent weeks. That is why the experts of Goldman Sachs They raised their forecast for the index and now They believe that it could close 2024 at 5,200 points100 points more than in its previous estimate and 4% above current levels.
David Kostin, chief strategist of the New York bank, explained in a report that ““increasing earnings estimates” of quotes is the main “revision driver”. “We hope that the strong global GDP growth and a slightly weaker dollar support earnings per share, while lower rates and oil prices will be a slight drag,” Kostin added.
Tech stocks will boost Wall Street
In this sense, the American investment bank forecast that technology and large-cap stocks, especially The ‘Magnificent 7’ will be the big drivers of the index’s profits in 2024. In fact, Kostin believes that the growth of artificial intelligence (AI) and the strength of consumption, as well as the economic outlook and lower interest rates in the USwill boost both the revenues and margins of these companies. It should be noted that, in recent weeks, the technological Nasdaq also managed to set new all-time highs.
Specifically, the firm’s strategists improved their earnings per share forecasts for the year to a range of between $241 and $256 in 2025, from $237 and $250 previously. The new estimate is above strategists’ median forecast of $235.
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Reuters
S&P500: what other analysts think
He Goldman’s target of 5,200 for the S&P 500 in 2024 is now one of the highest on Wall Street along with that of, among others, Oppenheimer Asset Manager or Fundstrat Global Advisors. The consensus average is just below 5,000 points, at 4,950 points.
Other analysts such as Savita Subramanian, from Bank of America, They have also been optimistic about the S&P 500 and believe that the objective in the short term it is “bullish”. “Our goal of 5,000 is probably too low in the short term,” he acknowledged in an interview with ‘Bloomberg TV’.
By contrast, Michael Wilson, chief investment officer at Morgan Stanley continues to be quite bearish for 2024, since it predicts that the selective will close the year at 4,500 points, 10% below current levels. All in all, Wilson expects the gains in the US equity market to spread to other sectors beyond technology.
Source: Ambito
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