Credit Suisse sets 2018 forecast for stock market, predicts big double-digit gain


His 2018 price forecast is based on a 6.9 percent increase in the market’s earnings next year and a 3.7 percent rise in its price-earnings valuation multiple.

He also shared his favorite sector calls for the coming year.

“Against this backdrop, financials should outperform the broad market, with deregulation providing a tailwind to the sector,” he wrote. “Technology is our favorite sector despite elevated multiples. Fundamentals remain strong given the group’s exposure to secular growth themes in subgroups such as internet and software-as-a-service.”

The strategist has overweight ratings for financials, technology and discretionary. On the flip side, he has underweight ratings for energy, utilities, telecom and REITs.

The S&P 500 is up 14 percent year to date through Monday’s close of 2,545.

As the end of the year approaches, Wall Street strategists are starting to look out to next year. Credit Suisse is the second major bank to issue an official 2018 price target. Wells Fargo in September gave a lackluster S&P 500 price range forecast of 2,450 to 2,550.

Source link

Products You May Like

Articles You May Like

Citigroup (C) earnings 1Q 2021
How to reduce exposure to tax increases with charitable contributions
Netflix (NFLX) Q1 2021 earnings
Where is it safe to go on a cruise in 2021
Social Security reform could move ahead after TRUST Act is introduced

Leave a Reply

Your email address will not be published. Required fields are marked *