These stocks will be the biggest S&P 500 winners of 2024, according to analysts
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Looking ahead to this year, analysts think some of 2023’s losers could come out on top, while shares of last year’s other tried-and-true winners, such as Nvidia and Warner Bros. , could continue to rise. Stocks had a bull run in 2023, defeating bearish sentiment that had weighed on investors’ early last year. The S & P 500 closed out 2023 higher by 24.2%, almost hitting a new record high, as a just a few megacap technology names led the market’s historic gains. Using the CNBC Pro Stock Screener Tool , we looked for S & P 500 stocks that analysts project will have the best performance in 2024 according to their consensus price targets. Many of the stocks are expected to make a comeback after a tough run this year. Below is the full list of winners and why analysts are so bullish on the names. Analysts are optimistic on a rebound in some energy names, including oil and gas companies Halliburton and Marathon Oil . Shares of several energy stocks had declined last year. The overall sector was a 2023 laggard, losing 4.8%, as U.S. crude oil ended last year more than 10% lower due to worries that the market is oversupplied from historic oil production outside OPEC. Analysts are more optimistic on the sector for this year due to expectations that U.S. production growth will slow this year, helping lift prices. If U.S. crude reaches to $100 a barrel, Morgan Stanley thinks shareholder returns for exploration and production stocks would rise to 13%. That’s still a bullish take, however. Halliburton’s stock price dipped 8.1% last year, while shares of Marathon Oil similarly went down, losing 10.9%. Analysts’ consensus price targets on both stocks indicate more than 34% upside over the next 12 months from Friday’s close. UBS downgraded Marathon Oil to neutral from buy on Dec. 14, and Morgan Stanley also lowered its rating on the stock to equal-weight from overweight. Both firms cut their price targets as well, but still forecasted upside. Raymond James, however, kept its strong buy rating on Marathon, but still cut its price target in mid-December. Airlines are also in for a strong year, according to analysts. Their average price targets suggest shares of Delta Air Lines and United Airlines Holdings have upside of more than 31% and 42%, respectively. Delta is TD Cowen’s “best idea” for 2024, the firm said in a December 21 note on its overall airlines outlook. Shares of the airline ended last year higher by about 22.4%. “The company is well-positioned in international markets which should continue to outperform domestic markets. Delta continues to focus on improving its balance sheet,” analyst Helane Becker wrote in the note. Becker added that Delta’s SkyMiles program has further runway as the American Express card continues to gain acceptance in international markets. Another tailwind, the analyst said, is that Delta pays wages aligned with the industry average and only has one union for its pilots, giving the airline an advantage over peers that are heavily unionized. Nvidia , which was the winning stock of the S & P 500 in 2023, gaining nearly 239%, is also expected to have more runway. Analysts have a consensus price target of $641.23 on the chipmaker, indicating more than 28% upside over the next year. Most analysts are bullish on the stock, including Bernstein senior analyst Stacy Rasgon, who told CNBC on Wednesday that Nvidia is cheaper now than it has been in a decade, given its sky-high earnings estimates. Some think the AI-fueled stock is due for a pullback , however. Insurance company Arch Capital , a little-known winner from last year, could also see further gains. Analysts have a consensus price targets of $95.20 on the stock, suggesting shares could gain roughly 28% this year, adding to its 18.3% gains in 2023. Evercore ISI initiated coverage of Arch Capital on Dec. 14 with an in-line rating and $88 price target. Other projected winners for 2024 include media giant Warner Bros. Discovery , pharmaceutical company Viatris and vaccine maker Moderna.
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