Top 7 Stocks to Watch in the Second Half of 2024 on Wall Street
Top 7 Stocks to Watch in the Second Half of 2024
As Wall Street analysts gear up for the second half of 2024, they have identified 7 stocks with the potential to outperform in the coming months.
Following the impressive rally of the S&P 500 index driven by Nvidia and other AI stocks, investment firms like Goldman Sachs and Citi have raised their year-end target for the benchmark index to 5,600 points.
1) Super Micro Computer
Super Micro Computer (SMCI) is attracting attention for its innovative solutions in the server and cloud infrastructure space.
With a significant increase in demand for cloud services and data centers, Supermicro’s stock has seen a notable uptick in 2024.
Trading at 4.3 times sales, below the US tech sector’s average of 7.8, the stock is considered undervalued.
The company’s exceptional revenue growth is a key factor driving interest, with analysts projecting further growth in the second half of the year.
Super Micro Computer’s current stock price target of $1,070 suggests a 17% upside potential.
The company’s revenue surged 20% year-over-year in the first half of 2024, supported by a diverse product portfolio and strategic partnerships.
Revenue and earnings for Supermicro soared by 37% and 115%, respectively, in fiscal year 2023.
Analysts forecast another 110% revenue growth and 102% earnings growth in fiscal year 2024.
While growth may taper as AI server supply meets demand, the company remains well-positioned, particularly with its dedicated AI server offerings.
2) Amazon
Amazon (AMZN) continues to shine with its dominant position in e-commerce and investments in AI and cloud computing.
Following a strong start to the year with a 22% stock increase, analysts predict a further 30%+ uptick in the second half of 2024.
Amazon has enhanced its AI capabilities with new AWS services, meeting robust demand.
Expanding distribution networks and logistics further fuel growth prospects.
Optimism surrounds advancements in automation and delivery technologies, expected to boost operational margins.
3) Berkshire Hathaway
Berkshire Hathaway’s Class B shares (BRK.B) have emerged as a key investment opportunity for the latter half of 2024.
With a projected 20% increase to $490 in the next 12 months, the stock has already risen 15% this year.
The conglomerate’s strong financial position and cash flow generation capabilities underpin optimism, bolstered by diversification across insurance, energy, and consumer goods sectors.
Recent upgrades to a “buy” rating emphasize attractive valuation and resilience amidst market uncertainties.
4) United Airlines Holdings
United Airlines Holdings (UAL) is poised for a strong performance in the second half of 2024, with a predicted 47% surge in the next six months.
Despite aviation sector challenges, United Airlines has shown signs of recovery, benefiting from increased international travel and business trip demands.
Effective cost management strategies, expanded international routes, and investments in technology and sustainability position the airline well for long-term growth.
5) Walt Disney
Walt Disney (DIS) remains a standout stock, with a forecasted 25% growth for the remainder of 2024.
Buoyed by solid performance in theme parks and streaming platforms, Disney’s shares have already climbed 13% this year.
Continued demand for theme parks and exclusive content on Disney+ attracts investors, with optimistic ratings and a 43% price target upside potential.
6) Vistra
Vistra (VST), a leading US utility company, is another stock garnering analyst attention.
With a 130% increase in 2024 and a projected 21% uptick in the next six months, Vistra stands to benefit from energy transition initiatives and sustainable solutions.
The company’s focus on renewable energy investments and innovative energy storage projects, alongside stable cash flow-generating traditional operations, aligns well with market trends.
7) Chevron
Chevron (CVX) in the energy sector is expected to outperform in the latter half of 2024.
Despite a modest 4.4% increase this year, analysts anticipate a significant 31% rise to $206 in the coming months.
Key projects, including offshore oil developments in Guyana and strategic acquisitions, bode well for production capacity and profit margins.
With a below-average P/E ratio, Chevron’s growth prospects remain favorable.
These 7 stocks present unique growth opportunities, but investors are advised to conduct thorough research and consider personal risk tolerance before making investment decisions.
