These outperforming stocks are still set to soar, analysts say, giving one 52% upside
The year has reached its halfway mark — and stocks are still adding on to gains. The S & P 500 hit yet another fresh record on Wednesday , as did the Nasdaq Composite. That brings the S & P 500 to gain 12.93% year-to-date. The market is fueled by tech stocks and the artificial intelligence boom, but it’s uncertain whether it will keep reaching new highs the rest of the year — or even fall. Some say the U.S. Federal Reserve could be forced to hold off on interest rate cuts if inflation is sticky. “There are a number of potential issues that could spark financial-market volatility in the months ahead,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “We believe the likely main volatility trigger is still the timing of potential Federal Reserve interest-rate cuts.” Election “surprises” could also be another trigger for a pullback in stocks, he added. Well Fargo’s guidance emphasizes a rebalancing in stocks, said Wren. “We believe tech-related equities are vulnerable to uncertainties in long-term rates while inflation remains variable,” he said, adding that he likes sectors with “cheaper-than-tech” valuations and long-term growth potential such as industrials, energy and health care. Other stocks outside of major tech names could start to do better, added U.K. asset manager Schroders. “We expect the gap between the ‘Magnificent 7’ stocks versus the rest of the universe to narrow throughout 2024,” said Jason Yu, head of multi-asset management (Asia) at the firm. CNBC Pro used FactSet to screen the S & P 500 and the MSCI World index to find out which stocks have already beaten the market this year — but could still come out ahead in the second half of the year and beyond. These are the criteria we used: Up more than 13% so far in 2024. At least half of analysts rate the stock a buy. Consensus price targets offering upside of 20% and more. These stocks showed up.
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