A new report from FactSet has found that Wall Street analysts, on average, expect the benchmark S&P 500 index to rise 19% over the coming 12 months.
According to FactSet, analysts anticipate that the S&P 500 index will increase nearly 20% from its level on September 21, when the index closed at 4,330.
If accurate, the forecast would mean that the S&P 500 will break above 5,000 for the first time ever in 2024.
Wall Street professionals expect information technology to continue leading stocks higher, with a projected gain of 22.8% over the next year.
Consumer discretionary stocks are forecast to gain of 22.7%, followed by real estate with an increase of 22.6%.
Energy stocks are expected to lag the broader market in the coming 12 months with a projected gain of 10.7%, the smallest price increase among the S&P 500’s 11 subsectors.
Analysts anticipate that earnings growth will be the main catalyst driving stocks higher, with forecasted earnings growth of 12.2% in 2024.
An end to the U.S. Federal Reserve’s interest rate hikes by the middle of next year is also expected to be a positive catalyst for stocks.
The bullish forecast comes even though U.S. stocks have been trending lower since the start of August this year, with the S&P 500 index having fallen 5.5% in the last two months.
Still, the S&P 500 remains up 12% since the start of the year, driven higher by a handful of technology stocks. Analysts expect the market rally to broaden out in 2024.
