Evercore ISI Predicts Double-Digit Rally for S&P 500 Index through 2024
With the S&P 500 Index continuously breaking records, Evercore ISI is now forecasting another double-digit rally through the end of 2024. Julian Emanuel, the firm’s chief equity and quantitative strategist, has raised his year-end forecast on the S&P 500 Index to 6,000, which is the highest among major equity strategists tracked by Bloomberg.
This optimistic outlook is a significant change from Emanuel’s previous prediction of the gauge finishing the year at 4,750. The S&P 500 has already seen a 14% increase this year, driven by optimism surrounding a resilient economy, improving corporate earnings, and the Federal Reserve’s decision to end its tightening cycle. Emanuel believes that factors such as ebbing inflation and the growing excitement around artificial intelligence will further propel stock prices.
In a note to clients, Emanuel highlighted how the pandemic has altered the financial landscape, with record stimulus, increased cash reserves, and lower leverage supporting consumers. He also mentioned the impact of artificial intelligence, stating that GenAI’s potential in various industries is beginning to show. Additionally, Emanuel raised his estimates for the index’s per-share earnings in 2024 and 2025 to $238 and $251, respectively, implying solid profit growth.
Despite the S&P 500 reaching 6,000 by the end of 2024, Emanuel believes that the gauge’s price-to-earnings multiple will still be below the levels seen during the dot-com peak. Looking ahead to 2025, he even suggests the possibility of the index hitting 7,000. While valuations may be elevated due to AI exuberance, Emanuel believes that price-earnings multiples might remain high for an extended period.
This positive outlook aligns with other Wall Street forecasts, such as Goldman Sachs Group Inc.’s David Kostin, UBS Group AG’s Jonathan Golub, and BMO Capital Markets’ Brian Belski, who are also predicting further gains for the S&P 500. In contrast, JPMorgan Chase & Co. has a more conservative year-end target of 4,200, implying a significant drop from current levels.
As the stock market continues to show strength, investors are advised to stay informed and consider the potential opportunities presented by these forecasts. Extreme Investor Network is dedicated to providing valuable insights and guidance to help maximize returns and navigate the ever-changing financial landscape. Stay tuned for more updates and expert analysis on our platform.