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🔮 2024 S&P 500 Price Targets
1) 2024 S&P 500 Outlook 2) Worst Performing Stocks In The S&P 500, 3) FedEx’s Delivery Downturn, and more!
Carbon Finance
December 22, 2023
Happy Friday!
Today marks a significant moment – the final issue of 2023. Your support has been the cornerstone of this incredible journey.
As we step into the holiday season, I wish you a Merry Christmas and a joyful New Year with your friends and family.
I’m super excited for 2024, so stay tuned for the next issue, which will come on Friday, January 5th.
Thank you for being an essential part of this story.
Some key data bites from this week that you should know:
Google $GOOG has agreed to pay $700M and make changes to its Play Store policies in the US following antitrust settlements.
Qualcomm $QCOM says its Snapdragon X Elite chip is 21% faster in multi-core performance than Apple's $AAPL latest M3.
In 2022, stock ownership among U.S. households reached a record 58%, up from 53% in 2019, based on the Fed’s triennial survey.
Coupang $CPNG is planning to acquire Farfetch $FTCH, providing $500M to the struggling online luxury fashion retailer.
Electric scooter company Bird, once valued at $2.5B, filed for Chapter 11 bankruptcy.
In today’s newsletter:
🔮 S&P 500 2024 Outlook
🧸 Worst Performing Stocks In The S&P 500
📦 FedEx’s Delivery Downturn
Let’s dive right in!
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🔮 S&P 500 2024 Outlook
This week, Goldman Sachs raised it’s 2024 S&P 500 price target by 8% to 5,100.
Goldman believes that future stock market gains will come from cyclical sectors and smaller companies, differing from 2023’s tech-led growth.
Furthermore, the Fed’s anticipated rate cuts and Jerome Powell’s dovish stance at the last Fed meeting are also expected to boost stock markets further.
As of December 21st, the S&P 500 is currently at 4,746, meaning that Goldman’s 2024 price target represents a 7% upside.
Citi and Deutsche Bank also hold the same price target for 2024.
On the other hand, JPMorgan is forecasting a drop in the S&P 500 to 4,200 in 2024, or a 12% decrease at current levels.
JPMorgan’s bearish forecast is the lowest among peers.
The bank believes that global economic slowdown, decreased household savings, and heightened geopolitical tensions are the reason for a future decline.
While examining bank forecasts definitely provides interesting insights into market trends, it's important to approach these predictions with caution, recognizing their inherent uncertainty and potential biases.
🧸 Worst Performing Stocks In The S&P 500
While the S&P 500 is up +24% this year, not all stocks have benefited from the rally.
Here are the top 10 companies with the worst performance this year in the S&P 500.
At the bottom of the list is FMC Corporation, followed by Enphase Energy, and then Moderna.
FMC Corporation is an American chemical manufacturing company.
Back in July, the company slashed its revenue outlook for 2023, citing unexpected sales declines and inventory issues linked to extreme weather.
This caused shares of the company to drop more than 11% that day alone.
Typically, many investors look at the rear-view mirror and invest in the stocks that have the best recent performance.
However, some of the most attractive opportunities are found in companies that have dropped significantly, as often times value can be found in these overlooked stocks.
📚 Recommended Reading
Do you want investment research for stocks that have the potential for an asymmetric return over the next decade? Here’s where my friend Travis from Asymmetric Investing comes in:
Explore High-Potential Stocks: Dive into a world of stocks with the potential for asymmetric returns of 10x or more over the next decade.
Exclusive Research Access: In-depth insights and analysis, unlocking an abundance of investment knowledge.
Real-Money Portfolio: Gain insight into a real-money portfolio, a reflection of confidence in the research.
Join a Community of Forward-Thinking Investors: Be part of a group that looks beyond the conventional, aiming to discover stock market gems.
Follow along as Travis builds a portfolio of Asymmetric Stocks and tells you about every trade before it’s made on his journey to $1 million.
📦 FedEx’s Delivery Downturn
On Tuesday evening, FedEx reported earnings for Q2 FY 2024.
The Numbers:
Earnings: 🔴 $3.99 Misses $4.18 Est.
Revenue: 🔴 $22.17B Misses $22.41B Est.
Consensus estimates are from LSEG.
The Quarter & Guidance:
Investors weren’t happy with FedEx’s earnings report, sending shares down by over 12% this week.
The company saw a 3% reduction in overall revenue and saw a considerable bottom line miss.
FedEx’s largest segment, Express, saw revenue decline by 6% due to lower demand and customers switching to more affordable services.
Looking ahead, FedEx cut its full-year revenue outlook to a low-single digit decline, down from prior flat growth expectations.
Challenging demand and customer shifts will continue to impact future revenue, despite FedEx’s ongoing restructuring efforts.
🧾 New Salesforce Acquisition. Salesforce $CRM is acquiring Spiff, a compensation management software, to enhance its Sales Cloud solutions - PYMTS
📈 Affirm’s Expansion. Affirm $AFRM is expanding their buy-now-pay-later service to Walmart's $WMT self-checkout kiosks and online platforms - WSJ
🇧🇷 Brazil Upgrade. S&P Global Ratings $SPGI upgraded Brazil to "BB" from "BB-" after tax reform - R
🕶️ Vision Pro Launch. Apple $AAPL is accelerating production of its Vision Pro mixed-reality headset, planning a February launch - BB
Major Trades Published 12/15 - 12/21
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