The year 2024 has seen a positive start with all three major indexes showing gains in the first half. The S & P 500, Nasdaq Composite, and Dow Jones Industrial Average have all shown impressive numbers, with the benchmark S & P 500 gaining 15%, trailing behind the Nasdaq Composite’s 18% jump, and the Dow Jones Industrial Average adding 3.8%. Traders are signaling optimism towards the artificial intelligence boom, spearheaded by Nvidia, which has propelled the broader market to all-time highs. Despite looming inflation pressures, traders are hopeful that the Federal Reserve may have room to cut interest rates this year, leading to a positive outlook for the U.S. economy and stock market.
Stock Selection Criteria and Analysis
With the expectation of gains in the U.S. market, CNBC Pro screened FactSet data to identify stocks that meet specific criteria. These criteria include stocks with revenue exposure of 60% or more to the U.S. market, buy ratings from at least 60% of analysts, and average analyst price targets implying upside of at least 25%. One of the stocks that made the list is MGM Resorts, a casino operator benefitting from robust travel trends to Las Vegas. Despite some weaknesses in older properties, analysts remain positive about MGM’s future prospects, citing potential revenue growth and healthy capital returns. Delta Airlines is another stock on the list, having become the most profitable U.S. airline with a reputation for luxury services. The airline’s strong financial performance and expansion plans have contributed to its positive outlook.
Individual Stock Analysis and Outllook
MGM Resorts, despite a slight decline in its stock price in 2024, is expected to benefit from continued travel trends to Las Vegas. Analysts are optimistic about the company’s forward guidance and potential for revenue growth from both Vegas and China. Similarly, Delta Airlines has seen a significant increase in its stock price this year, surpassing Wall Street’s earnings estimates and expanding its premium services to attract more customers. Both companies are positioned well for future growth and profitability.
Overall, the outlook for select U.S. stocks in 2024 looks promising, driven by positive market trends, analyst recommendations, and individual company performance. While risks and uncertainties in the market remain, investors are optimistic about the potential for growth and gains in the coming months. As always, it is essential for investors to conduct their own research and due diligence before making any investment decisions.