Societe Generale (OTC:SCGLY) strategists are advising investors to consider buying the dip in the S&P 500.
The analysts see positive indicators that suggest continued upside in earnings until the first quarter of 2024.
The investment bank also highlights a positive inflection in the S&P 500 profit cycle, driven by large-cap growth stocks.
“We suggest buying the dip on the S&P 500 with a preference for tech, industrials and energy,” the analysts write in a note.
The bank’s quant strategy urges clients to hold an overweight position in the profitability and quality factors.
On the other hand, SocGen recommends “a significant underweight” to value. This underweight stance is based on poor fundamentals, negative price momentum, and weaker analyst sentiment in the value segment.
SocGen’s strategists have adjusted their S&P 500 forecast upward twice this year, with the most recent revision in September setting a year-end target of 4,750.