Bank of America has forecasted an approximately 11% rise in the S&P 500 index over the next year, potentially reaching 4,850, despite market volatility and higher rates. This prediction is based on the Sell Side Indicator, a tool used to track Wall Street's mood and suggests a bullish future for equities.
BofA believes that businesses and consumers will adapt well to the higher rates. This optimistic view of the market could greatly benefit stock investors. Amidst these predictions, other financial institutions are also making their moves. Deutsche Bank finds homebuilding stocks attractive while Goldman Sachs is eyeing utilities and consumer staples stocks ahead of the Presidential Election.
Bank of America currently favors two stocks: MongoDB , Inc. (NASDAQ:MDB) and Northern Trust (NASDAQ:NTRS). MongoDB is a leading data platform software company known for its high-end database systems like MongoDB Atlas (NYSE:ATCO) which provides built-in security features. The company's shares have risen by 88% this year, largely due to a 40% surge in June following a forecast-beating earnings report. In its fiscal 2Q24 results, MongoDB continued to outperform expectations with strong customer growth and increased revenue.
Despite industry headwinds like rising inflation and interest rates, Northern Trust, a financial services provider for wealthy institutions and individuals, has maintained its dividend payments. Bank of America views this as an attractive entry point into the wealth management industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.