Energy stocks poised for a comeback in 2024
Analysts are optimistic about a rebound for certain energy stocks in 2024, particularly in the oil and gas sector. Companies like Halliburton and Marathon Oil, which experienced declines in 2023, are expected to see significant upside. Halliburton’s stock price dipped 8.1% last year, while shares of Marathon Oil similarly went down, losing 10.9%. However, analysts’ consensus price targets on both stocks indicate more than 34% upside over the next 12 months.
The positive outlook for energy stocks is driven by expectations that U.S. production growth will slow down this year, leading to an increase in oil prices. If U.S. crude reaches $100 a barrel, it is projected that exploration and production stocks could see a rise in shareholder returns of up to 13%. Despite the downward trend in 2023, analysts believe that the sector as a whole will perform better in 2024 due to the favorable supply-demand dynamics.
Airlines expected to take off in 2024
Analysts have high hopes for the airline industry in 2024, with projected gains for companies like Delta Air Lines and United Airlines Holdings. The average price targets suggest upside of more than 31% and 42%, respectively, for these stocks. Delta Air Lines, in particular, has been highlighted as TD Cowen’s “best idea” for 2024.
Analysts believe that Delta is well-positioned in international markets, which are expected to outperform domestic markets. The company is also focused on improving its balance sheet and has a strong loyalty program, SkyMiles, which has further potential for growth. Delta’s competitive advantage over its peers, such as having only one union for its pilots and paying wages aligned with the industry average, further strengthens its prospects for the year ahead.
Analysts bullish on Nvidia’s continued rise
Nvidia had a stellar performance in 2023, emerging as the winning stock of the S&P 500 with a gain of nearly 239%. Analysts believe that Nvidia still has room to grow, with a consensus price target indicating more than 28% upside over the next year.
Although some think that the AI-fueled stock may be due for a pullback, the majority of analysts remain optimistic about Nvidia’s future. The chipmaker’s stock is considered relatively inexpensive compared to its earnings estimates, making it an attractive opportunity for investors.
Arch Capital and other under-the-radar winners for 2024
Insurance company Arch Capital, which may not be in the spotlight, is one of the under-the-radar winners expected to see further gains in 2024. Analysts have a consensus price target of $95.20 on the stock, suggesting a potential gain of approximately 28% this year.
Evercore ISI initiated coverage of Arch Capital with an in-line rating and a $88 price target, further supporting the positive outlook for the company. Despite being lesser-known, Arch Capital’s gains in 2023 and the projected growth in 2024 make it an interesting option for investors looking for hidden opportunities.
Warner Bros., Viatris, and Moderna among projected winners for 2024
Apart from the aforementioned stocks, media giant Warner Bros. Discovery, pharmaceutical company Viatris, and vaccine maker Moderna are also among the projected winners for 2024.
With the changing landscape of the media industry and the continued rise of streaming services, Warner Bros. Discovery is expected to benefit from its strong content portfolio and market positioning.
Viatris, a pharmaceutical company formed from the merger of Mylan and Pfizer’s Upjohn, is projected to have growth opportunities in both generic and specialty pharmaceutical markets. Analysts are optimistic about Viatris’ ability to deliver solid financial performance in the coming year.
Finally, Moderna, the innovative vaccine maker that played a crucial role in combating the COVID-19 pandemic, is set to continue its success in 2024. The company’s expertise in mRNA technology and its pipeline of potential vaccines and therapies give it a promising outlook.
These stocks, along with the energy stocks, airlines, and Nvidia, are expected to be among the top performers in 2024, according to analysts’ consensus price targets. However, it is important for investors to conduct their own research and make informed decisions based on their individual investment goals and risk tolerance.
Analyst comment
Positive news: Energy stocks poised for a comeback in 2024
Analyst prediction for the market: Energy stocks, particularly in the oil and gas sector, are expected to rebound in 2024 due to slowing U.S. production growth and favorable supply-demand dynamics. Companies like Halliburton and Marathon Oil are projected to see significant upside in their stock prices.
Positive news: Airlines expected to take off in 2024
Analyst prediction for the market: The airline industry is expected to perform well in 2024, with companies like Delta Air Lines and United Airlines Holdings projected to see gains. Delta, in particular, is well-positioned in international markets and has strong fundamentals that make it an attractive investment.
Positive news: Analysts bullish on Nvidia’s continued rise
Analyst prediction for the market: Nvidia, the top-performing stock of the S&P 500 in 2023, is expected to continue its growth in 2024. Analysts believe there is still room for its stock price to rise, and its relatively low valuation compared to earnings estimates makes it an appealing opportunity for investors.
Positive news: Arch Capital and other under-the-radar winners for 2024
Analyst prediction for the market: Insurance company Arch Capital, along with other lesser-known stocks, is expected to see further gains in 2024. The positive outlook is supported by analysts’ price targets and coverage initiations, making these stocks interesting options for investors looking for hidden opportunities.
Positive news: Warner Bros., Viatris, and Moderna among projected winners for 2024
Analyst prediction for the market: Warner Bros. Discovery, Viatris, and Moderna are expected to be among the top performers in 2024. Each company has unique factors, such as strong content portfolio, growth opportunities in pharmaceutical markets, and innovative technology, that contribute to their promising outlooks.
