As we approach the second half of the year, many investors are looking for opportunities to boost their portfolios. With the S & P 500 reaching record levels and significant gains seen in the first half of the year, it is essential to identify stocks that have the potential to continue outperforming the market. Analysts have shared their favorite picks that are forecasted to see significant growth in the coming months.
Warren Buffet’s Berkshire Hathaway has made the list of stocks expected to outperform in the second half of 2024. Analysts project a 20.8% increase in the stock price over the next 12 months, with a current year-to-date gain of around 13%. Three out of four analysts covering the stock rate it as a buy or a strong buy. Argus recently upgraded the shares to buy from hold, highlighting its attractive valuation and robust financial position.
Disney is another Wall Street favorite heading into the second half of the year. Analysts predict a nearly 25% rally in the stock price over the next 12 months. The demand for Disney’s parks segment remains strong, with Guggenheim reiterating its buy rating on the shares. Approximately three-quarters of analysts covering the stock have a strong buy or buy rating. Disney shares are already up 12% in 2024, indicating positive momentum.
Several energy stocks have also been identified as potential outperformers for the second half of 2024. Despite underperforming the broader market so far this year, analysts see significant upside in stocks like Coterra Energy. While the stock is up less than 5% in 2024, analysts believe it could rally 26.5%. UBS has named Coterra as one of its favorite energy and utilities picks. Two-thirds of analysts covering the stock have a strong buy or buy rating.
Oil giant Chevron is another energy stock expected to outperform in the second half of the year. The stock is currently trading at a forward P/E ratio below its 5-year average, indicating potential for growth in the coming months. Chevron’s recent acquisition of Hess for $53 billion and its ongoing competition with Exxon Mobil over offshore oil assets in Guyana are contributing factors to its positive outlook. While Chevron shares are only up 2.8% year to date, analysts remain bullish on its future prospects.
As we enter the second half of 2024, there are several stocks that Wall Street analysts believe have the potential to outperform the market. From established conglomerates like Berkshire Hathaway and Disney to energy stocks such as Coterra Energy and Chevron, investors have options to consider for their portfolios. It is essential for investors to conduct their research and due diligence before making investment decisions based on analyst recommendations.