According to an analysis from FactSet’s John Butters, Wall Street analysts project that the S&P 500 index will rise by 19% over the next 12 months. This would require the index to surpass 5,000 for the first time. The optimistic forecast is mainly based on expected earnings growth, which contrasts with the recent declines in year-over-year earnings. Information technology, consumer discretionary, and real estate sectors are expected to see the largest gains, while energy stocks are projected to have the smallest increase in prices. Despite a recent slide, the S&P 500 remains up 13% since the beginning of the year.
In terms of specific stocks, Wall Street is particularly optimistic about SolarEdge Technologies, Insulet Corporation, DexCom, and FMC Corporation, among others, expecting them to outperform the rest of the index. On the other hand, stocks like Expeditors International of Washington, Tyson Foods, and Consolidated Edison are predicted to lag behind. The recent decline in US stocks has been attributed to rising Treasury yields, specifically 10-year note and 30-year bond yields.
While US stocks have been relatively flat in 2023, some analysts on Wall Street remain bullish about the market. Projected earnings growth and sector-specific forecasts contribute to the optimistic outlook for the S&P 500 index, which is expected to rise by 19% over the next year. However, some sectors, such as energy, are predicted to have smaller price increases compared to others. At the individual stock level, certain companies like SolarEdge Technologies and Insulet Corporation are expected to perform well, while others like Expeditors International of Washington and Tyson Foods may underperform. The recent decline in stocks has been linked to increasing Treasury yields. Despite the recent slide, the S&P 500 index is still up 13% since the beginning of the year.