S&P 500 should end 2024 at current levels around our price target of 5,100, says BMO's Brian Belski (2024)

FAQs

What is the target price for the S&P 500 in 2024? ›

June 17 (Reuters) - Goldman Sachs has raised its 2024 year-end target for the S&P 500 Index (.SPX) , opens new tab to 5,600 from 5,200, citing strong earnings growth by five mega-cap U.S. tech stocks and a higher fair value price-to-earnings ratio multiple.

BMO Capital Markets chief investment strategist Brian Belski boosted his year-end price target for the S&P 500 (^GSPC) to 5,600 from 5,100 in a research note on Wednesday, noting that momentum in the market is "likely to persist." Belski's 5,600 target reflects about 7% upside from Monday's close.

The S&P 500 Index or Standard & Poor's 500 Index is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S. The index includes 503 components because three have two share classes listed.

The S&P 500 is a stock market index that is viewed as a measure of how well the stock market is performing overall. It includes around 500 of the largest U.S. companies.

Overall, Yardeni Research forecasts S&P 500 operating earnings at $250 in 2024, up 12% vs 2023. He puts them at $270 in 2025 (up 8%) and $300 in 2026 (up 11.1%). These figures compare with analysts' consensus forecasts of $244.70 in 2024, $279.70 in 2025 and $314.80 in 2026.

Mike Wilson, Morgan Stanley's chief U.S. equity strategist, said he sees the S&P 500 climbing to 5,400 by the second quarter of 2025.

Based on the latest S&P 500 monthly data, the market is OVERVALUED somewhere in the range of 92% to 154%, depending on the indicator, up from last month's 89% to 149%.

SNPINDEX: ^GSPC

The market is surging, but is now really the best time to buy? The S&P 500 (^GSPC -0.16%) has been booming over the past year and a half, currently up by nearly 50% from its low in late 2022. The index has also reached two dozen all-time highs throughout 2024, its most recent in late May.

The historical average yearly return of the S&P 500 is 12.58% over the last 10 years, as of the end of April 2024. This assumes dividends are reinvested. Adjusted for inflation, the 10-year average stock market return (including dividends) is 9.52%.

One way to become a millionaire

Over its history, the S&P 500 has generated an average annual return of 9%, including re-invested dividends. At that rate, even a middle-class income is enough to become a millionaire over time. $500 a month, for example, is less than 10% of the median U.S. household's monthly income.

What happens when you invest in the S&P 500? ›

Key Takeaways. The S&P 500 tracks the largest U.S. companies based on market capitalization. An S&P 500 Index fund can help investors gain broad exposure to the constituent stocks in the S&P 500 index.

The S&P phenomenon is a temporary increase in the price of a stock upon the announcement of its inclusion in the S&P 500 Index. This occurs because the index is widely tracked by institutional investors. When a stock is added, funds that follow the index buy the stock.

Optimistic: 6%-7% per year.

If you assume margins and P/E multiples will remain at their current high level, and expect sales and buybacks to grow at their historical rates, then you can anticipate making about 6% in returns per year over the next decade.

Target Stock Price Forecast 2024-2025

Target price started in 2024 at $142.42. Today, Target traded at $146.07, so the price increased by 3% from the beginning of the year. The forecasted Target price at the end of 2024 is $147 - and the year to year change +3%. The rise from today to year-end: +1%.

The S&P Target Date 2030 Index is designed to represent a broadly derived consensus of asset class exposure and glide path for target date year 2030. The index allocates to equities and fixed income at varying levels, according to a pre-determined schedule related to the respective target date.