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Yardeni Research sees DJIA at 60,000, S&P 500 at 8000 by 2030

Published 05/20/2024, 12:28 PM
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Yardeni Research projects a bullish outlook for the stock market, forecasting that the Dow Jones Industrial Average (DJIA) could reach 60,000 and the S&P 500 could hit 8000 by 2030.

The firm said in a recent research note that the DJIA, which recently closed above 40,000 for the first time, is anticipated to rise by 50% over the next six years.

The S&P 500 is expected to achieve its target based on a forward price-to-earnings (P/E) ratio of 20 and forward earnings of $400 per share, a significant increase from the current estimated $250 per share. 

Yardeni Research envisions this growth within a "Roaring 2020s" scenario, suggesting robust economic expansion and corporate profitability.

The firm notes the recent Q1-2024 earnings season exceeded expectations, with the S&P 500 reporting a 6.3% increase in earnings per share (EPS) compared to an anticipated 1.2% rise. 

In addition, forward earnings for the S&P 500 reached new highs, with projections indicating $244 per share this year, $278 in 2025, and $313 in 2026. These trends bolster the firm's confidence in achieving the $400 EPS target by 2030.

Yardeni analysts also revealed that market analysts highlight mixed signals from corporate insiders. There is a cautious overall buy/sell ratio but a notable increase in "actionable buys" in sectors like long-duration emerging tech, early-stage biotech, and dividend-yielding closed-end funds, they said.

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