From Investing.com: 2024-04-12 10:16:02

UBS’s CIO Head of US Equities predicts S&P 500 could reach 5,500 this year, citing broadening earnings. Analysts anticipate 7-9% growth in Q1 for S&P 500 companies, especially outside the Magnificent 7 stocks. Firm maintains 2024 EPS estimate at 245 and 2025 at 260. Despite potential pause, optimism remains for stocks.

With positive growth expected for non-Mag 7 stocks for the first time since Q4 2022, analysts see trend accelerating throughout 2024. UBS holds steady on S&P 500 EPS estimates of 245 for 2024 and 260 for 2025. Solid earnings, potential Fed rate cuts, and AI investments contribute to firm’s optimism.

Although a market breather is possible after recent gains, UBS remains bullish on S&P 500’s future. Predicting a year-end target of 5,200 in their base case scenario, they suggest an upside potential of 5,500 if inflation improves or earnings surpass expectations. Optimism fueled by earnings growth and Fed actions.



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