Goldman Sachs Predicts More Stock Gains

It’s been a bumpy road for the stock market this year, but investors aren’t complaining.

Goldman’s analysts said growth expectations and valuations for the largest technology, media, and telecommunication stocks are “still far from bubble territory.” I Photo: New York Stock Exchange Facebook

That’s because markets have rallied to new highs and have already soared past analysts’ 2024 estimates, Nicole Goodkind reported for CNN.

The S&P 500 has surged more than 10% since January, and last week it surpassed Goldman Sachs’ year-end target of 5,200. So what comes next? The question is weighing heavily on the minds of investors, Goldman Sachs’ strategists wrote in a note Friday.

The analysts, led by Goldman’s chief US equity strategist, David Kostin, presented a scenario in which mega-cap tech stocks could continue to grow and propel the S&P 500 an additional 15% higher to the 6,000 level by the end of the year.

The current rally in growth stocks is different from what happened when markets crashed in 2021 or during the tech bubble, the analysts wrote.

This time around, investors are paying closer attention to how much profit companies are actually bringing in, they said.

And while enthusiasm for artificial intelligence is at a fever pitch, Goldman’s analysts said growth expectations and valuations for the largest technology, media, and telecommunication stocks are “still far from bubble territory.”

The investment bank also presented a more tempered scenario in which the S&P 500 will climb 11% to reach 5,800 by year-end. In this case, markets would just have to catch up to their pre-pandemic valuation levels.

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