As we move forward into the second half of 2024, there are several key factors that have the potential to drive strong gains in the U.S. market. The first half of the year has been promising, with all three major indexes experiencing positive growth. The S & P 500, Nasdaq Composite, and Dow Jones Industrial Average all saw gains, with the Nasdaq leading the way with an 18% jump. Traders are displaying optimism, particularly in the artificial intelligence sector, which has been buoyed by the success of companies like Nvidia.
Inflation pressures are being closely monitored by traders, with signs that they may be abating. This could potentially give the Federal Reserve room to cut interest rates later in the year. The hope is that the U.S. economy will achieve a “soft landing,” characterized by low unemployment rates, decreasing price pressures, and a cooling off of the economy without slipping into a recession. This overall positive economic outlook is contributing to the bullish sentiment in the market.
With this backdrop in mind, CNBC Pro has identified several stocks that are poised for strong gains in the U.S. market. These stocks meet specific criteria, including having at least 60% revenue exposure to the U.S., buy ratings from a majority of analysts, and average price targets that suggest at least a 25% upside potential. One such stock is MGM Resorts, which has seen a slight decline in its stock price in 2024. However, the company is benefitting from robust travel trends to Las Vegas and positive analyst coverage that bodes well for its future performance.
Delta Airlines is another stock on the list set to see gains. The airline has positioned itself as a luxury option, which has made it the most profitable U.S. airline. Strong consumer demand and positive earnings reports have driven its stock price up by more than 16% this year. Delta’s strategic moves, such as opening premium-tier airport lounges, are aimed at solidifying its dominance in the market and fending off competition from rivals like United Airlines.
In addition to MGM Resorts and Delta Airlines, other stocks on the list include Axon Enterprise, a company that manufactures Taser stun guns and police body cameras, and ConocoPhillips. These companies are well-positioned to take advantage of the current market conditions and are expected to see significant growth in the coming months. As investors continue to monitor the economic landscape and market trends, these stocks remain attractive options for those looking to capitalize on the potential for strong gains in the U.S. market.