As we approach the second half of 2024, investors are eager to identify stocks that have the potential to outperform the market. With the S&P 500 already up more than 15% this year, leading investment firms are optimistic about the continued upward trend. Goldman Sachs, Evercore ISI, and Citi have all raised their year-end forecasts for the broad market index, indicating a positive outlook for the remainder of the year.
One stock that stands out among analysts’ favorites is Warren Buffet’s Berkshire Hathaway. With a projected 20.8% upside over the next 12 months, Berkshire Hathaway’s Class B shares are already up around 13% year to date. The conglomerate’s strong financial position and attractive valuation have garnered the attention of analysts, with three out of four rating the stock as a buy or a strong buy. This positive sentiment is further supported by Argus’s recent upgrade of the stock to a buy rating.
Another standout stock for the second half of the year is Disney. Analysts see potential for a nearly 25% rally in the next 12 months, driven by healthy demand trends in Disney’s parks segment. Guggenheim, among other firms, has reiterated its buy rating on Disney shares, with around three-quarters of analysts covering the stock issuing a strong buy or buy rating. Disney shares are already up 12% in 2024, indicating positive momentum going forward.
While the energy sector has underperformed the broader market so far this year, there are still opportunities for growth. Coterra Energy, up less than 5% in 2024, is poised for a potential rally of 26.5% according to analysts. UBS has identified Coterra Energy as one of its favorite energy and utilities picks, with two-thirds of analysts covering the stock giving it a strong buy or buy rating.
Oil giant Chevron is another energy stock expected to outperform in the second half of the year. Trading at a forward P/E ratio below its 5-year average, Chevron shows potential for growth ahead. The company’s recent acquisition of Hess and its ongoing dispute with Exxon Mobil over offshore oil assets in Guyana further highlight its growth prospects. Despite modest year-to-date gains of 2.8%, analysts remain bullish on Chevron’s outlook for the remainder of 2024.
As we enter the second half of 2024, investors have the opportunity to capitalize on stocks that are forecasted to outperform the market. With a combination of solid fundamentals, positive analyst sentiment, and strong growth potential, stocks like Berkshire Hathaway, Disney, Coterra Energy, and Chevron are well-positioned for success in the coming months. Investors should conduct their research and consider these top picks when building their portfolios for the remainder of the year.