16 stocks to add to your portfolio now with markets set to rally to new all-time highs in 2024, according to an $861 billion investment firm
- Strategists are generally bullish about 2024, especially those at BMO Capital Markets.
- The firm sees US stocks rising by at least 11% in the second year of the bull market.
- Here are 16 US-based companies that BMO says stand out right now.
This year, US stocks have outperformed all expectations, and history suggests that investors should brace themselves for an impressive encore in 2024, including new record highs.
The S&P 500 is up 19% year to date through November and, barring a sharp end-of-year selloff, will finish the year up 16% or more for the fifth time in seven years.
According to BMO Capital Markets, double-digit market returns are expected again next year. Based on data from 14 such occurrences dating back to 1946, the $861 billion firm discovered that the index rises by an average of 11.1% in the second year of a bull market.
According to @BMO, US stocks have historically risen 11.1% in the second year of a bull market.Coincidentally (or not), the firm’s S&P 500 price target for 2024 is 5,100, implying an 11% increase. pic.twitter.com/SxlqU4RngIDecember 1, 2023 — James Faris (@JamesFaris_)
BMO forecasts a gain of just over 11% in 2024, based on its year-end S&P 500 price target of 5,100. But, if all goes well, investment strategy chief Brian Belski believes US stocks will outperform this year, rising another 20% to 5,500.
While it’s impossible to rule out a repeat of 2022, when the S&P 500 reached a high of 4,796 in its first session before posting its worst year since 2008, many analysts believe next year will be a positive year for US stocks. The S&P 500 is currently only 5% away from a new all-time high.
16 stocks to own now
Belski updated BMO’s investment strategy portfolios in a December 1 note after unveiling his 2024 outlook in late November. These stock groups in the United States and Canada are not necessarily buy recommendations, but rather ideas to consider based on one’s investing strategy.
The 16 stocks listed below were recently added to one of BMO’s US-focused model portfolios, along with their ticker, market capitalization, and group or groups to which they belong.
1. Boston Properties
Ticker: BXP
Market cap: $9.2B
Group: US Large-Cap Disciplined Value
Source: BMO Capital Markets
2. Disney
Ticker: DIS
Market cap: $168.5B
Group: US Large-Cap Disciplined Value
Source: BMO Capital Markets
3. Fifth Third Bancorp
Ticker: FITB
Market cap: $20B
Group: US Large-Cap Disciplined Value
Source: BMO Capital Markets
4. Goldman Sachs
Ticker: GS
Market cap: $111.5B
Group: US Large-Cap Disciplined Value
Source: BMO Capital Markets
5. Merck
Ticker: MRK
Market cap: $261B
Group: US Large-Cap Disciplined Value
Source: BMO Capital Markets
6. Qualcomm
Ticker: QCOM
Market cap: $143.7B
Groups: US Large-Cap Disciplined Value, US All-Cap Equity
Source: BMO Capital Markets
7. Regions Financials
Ticker: RF
Market cap: $15.8B
Groups: US Large-Cap Disciplined Value, US Equity Plus, US All-Cap Equity, US Tactical
Source: BMO Capital Markets
8. US Bancorp
Ticker: USB
Market cap: $59.6B
Group: US Large-Cap Disciplined Value
Source: BMO Capital Markets
9. Citigroup
Ticker: C
Market cap: $88.5B
Groups: US Equity Plus, US Tactical
Source: BMO Capital Markets
10. Comerica
Ticker: CMA
Market cap: $6.1B
Groups: US Equity Plus, US SMID Cap
Source: BMO Capital Markets
11. Gilead Science
Ticker: GILD
Market cap: $95.1B
Groups: US Equity Plus, US All-Cap Equity, US Tactical
Source: BMO Capital Markets
12. NiSource
Ticker: NI
Market cap: $10.6B
Groups: US All-Cap Equity, US Tactical
Source: BMO Capital Markets
13. Exxon Mobil
Ticker: XOM
Market cap: $410.8B
Group: US Tactical
Source: BMO Capital Markets
14. Exelixis
Ticker: EXEL
Market cap: $6.8B
Group: US SMID Cap
Source: BMO Capital Markets
15. Okta
Ticker: OKTA
Market cap: $10.9B
Group: US SMID Cap
Source: BMO Capital Markets
16. US Foods Holding
Ticker: USFD
Market cap: $10.7B
Group: US SMID Cap
Source: BMO Capital Markets
