The S&P 500 index may climb to 5,100 by the end of next year in a broadening of the U.S. stock market’s rally, according to equity analysts at Citigroup. Citi’s price target for the end of 2024 is premised on its estimate that the S&P 500’s earnings per share will increase to $245, equity analysts led by Scott Chronert said in a research note Friday. They lowered their midyear 2024 target to 4,800 from 5,000.
The U.S. stock market has rallied during the fourth quarter, with the S&P 500 closing Friday at about 4,604, according to FactSet data. The index has climbed almost 20% this year against the backdrop of a resilient economy, despite the Federal Reserve’s tightening of monetary policy to bring down inflation. “All told, we are positive on U.S. equities premised on improving earnings growth, even as recession risk lingers,” the Citi Research analysts said. “We expect a broadening beyond 2023’s Mega Cap Growth leadership accompanied by index earnings growth acceleration influenced by positive contributions across sectors and a greater number of individual stocks.” Read: Would a 2024 recession be ‘dire’ for stocks? Why Citi expects S&P 500 earnings to climb next year. Citi analysts lowered their midyear 2024 target for the S&P 500 to 4,800 in part to allow for a slowing economy in the first half of next year, according to the note. Their year-end target for 2024 “presumes recession resolution, Fed policy evolution, above-consensus earnings growth, with a multiple not far off of current levels.” The S&P 500 has a current price-to-earnings ratio of …
Article Attribution | Read More at Article Source
The U.S. stock market has rallied during the fourth quarter, with the S&P 500 closing Friday at about 4,604, according to FactSet data. The index has climbed almost 20% this year against the backdrop of a resilient economy, despite the Federal Reserve’s tightening of monetary policy to bring down inflation. “All told, we are positive on U.S. equities premised on improving earnings growth, even as recession risk lingers,” the Citi Research analysts said. “We expect a broadening beyond 2023’s Mega Cap Growth leadership accompanied by index earnings growth acceleration influenced by positive contributions across sectors and a greater number of individual stocks.” Read: Would a 2024 recession be ‘dire’ for stocks? Why Citi expects S&P 500 earnings to climb next year. Citi analysts lowered their midyear 2024 target for the S&P 500 to 4,800 in part to allow for a slowing economy in the first half of next year, according to the note. Their year-end target for 2024 “presumes recession resolution, Fed policy evolution, above-consensus earnings growth, with a multiple not far off of current levels.” The S&P 500 has a current price-to-earnings ratio of …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]