CFRA Predicts 11% Gain for S&P 500 in Next Year
- CFRA has predicted an 11% gain for the S&P 500 over the next year.
- This follows a nearly 15% increase in the index observed in 2024.
- Investors may need to consider these forecasts in their future strategies.
CFRA Research has raised its 12-month price target for the S&P 500 to 6,145, suggesting an 11.3% increase over the next year, despite potential near-term profit-taking. Chief investment strategist Sam Stovall indicated that this new forecast translates to a year-end target of 5,770, reflecting a 4.5% rise from the index's recent close. Previously, Stovall had set a target of 4,940 for the end of the year. Notably, Evercore's Julian Emanuel has the highest target among market strategists, predicting the S&P 500 will reach 6,000 in 2024. The optimistic outlook is supported by stable supply-and-demand dynamics and broadening market gains, particularly following the S&P 500's best performance since February, driven by expectations of interest rate cuts from the Federal Reserve. The index has seen a 17% increase in 2024, indicating a robust market environment. CFRA's analysis highlights a favorable balance of demand and supply indicators, suggesting a sustainable intermediate-term advance, where short-term pullbacks may present buying opportunities. Recent trends show investors shifting away from major technology stocks that previously led market gains, which CFRA interprets as a positive sign for the broader market. The S&P 500 has gained approximately 14% this year, closely trailing the Nasdaq Composite's 15% increase. Despite the potential for short-term corrections, CFRA advises investors to maintain their positions in the market.