🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

S&P 500 could hit 5,500 this year - UBS

Published 04/12/2024, 10:14 AM
Updated 04/12/2024, 10:16 AM
© Reuters.  S&P 500 could hit 5,500 this year - UBS

UBS's CIO Head of US Equities sees S&P 500 earnings broadening out, providing an upside scenario of 5,500 for the major index this year.

Analysts expect 7-9% growth for S&P 500 companies in the first quarter and highlight that this growth is starting to broaden out behind the Magnificent 7 stocks. Non-Mag 7 stocks are expected to post positive growth for the first time since the fourth quarter of 2022. Further, analysts see this trend accelerating through the balance of the year.

The firm is maintaining its S&P 500 EPS estimate of 245, representing 9% year-over-year growth for 2024, and 260, representing 6% year-over-year growth for 2025.

While they warn that stocks could take a breather, given the substantial gains over the last six months, the firm maintains optimism due to solid earnings growth, anticipated Fed rate cuts, and increased investment in AI.

"In our base case, we expect the S&P 500 to end the year around 5,200. But if inflation improves more quickly or earnings are better than expectations, our upside scenario of 5,500 appears reasonable," they write.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.