Analysts are becoming increasingly bullish about the year ahead. Investment bank Goldman Sachs (NYSE:GS) just raised its 2024 forecast for the benchmark S&P 500 index to 5100 from 4700 as the stock market rally gathers steam. Analysts at Goldman expect that interest-rate cuts by the U.S. Federal Reserve will serve as a catalyst and propel the U.S. market higher in the New Year with plenty of blue-chip stocks for 2024.
The U.S. central bank signaled earlier in December that it expects at least three interest-rate cuts in 2024, which led the Dow Jones Industrial Average to hit record levels and pushed the Nasdaq and S&P 500 indices to 52-week highs. Analysts at Goldman forecast even more growth in 2025, calling for the S&P 500 to continue rising over the next two years. As the bulls take control, we explain why these three blue-chip stocks should be on your radar in 2024.
Apple (NASDAQ:AAPL) is ramping up production of its Vision Pro mixed-reality headset. It has moved up the launch date to February 2024. to help counter slowed sales of its other electronic devices, such as the iPhone and MacBook computer. Production of the new headset has increased at Apple’s manufacturing sites in China, as the company pushes to get the Vision Pro into retail outlets.
The Vision Pro is priced at $3,499 and is Apple’s first entirely new product since the Apple Watch in 2015. Previously, the Vision Pro was not planned to launch until the spring of next year. The company has had a slowdown in sales of its electronic devices, particularly in China, where the economy has stalled. The Vision Pro will drive sales and APPL stock, which is up 55% in 2023.
Toyota Motor (TM)
There’s a buy-the-dip opportunity with Toyota Motor (NYSE:TM) right now after the stock fell 4% on news. The Japanese automaker has recalled one million vehicles in the U.S. over an airbag issue. The extensive safety recall involves 2020 to 2022 Toyota and Lexus models, including Avalons, Camrys, Highlanders, RAV4s, Siennas, Corollas and some hybrid versions of those vehicles. Toyota will notify customers by mid-February if their vehicle is part of the recall.
While disruptive, the recall doesn’t take away from the long-term outlook for Toyota or its stock. The company remains the world’s second biggest automotive manufacturer, churning out more than eight million cars, trucks and SUVs a year. Earlier in 2023, the company announced an aggressive push into electric vehicles. Toyota plans to sell 3.5 million battery-powered vehicles annually by 2030. It is also developing next generation batteries to power its EVs. TM stock is up 30% year-to-date.
Shares of Boeing (NYSE:BA) are winging higher on news that the company plans to restart deliveries of its commercial aircraft in China. Boeing will deliver a 787 Dreamliner aircraft to China in the company’s first sale in nearly three years. Juneyao Airlines, a privately owned Chinese carrier, plans totake possession of a new 787 Dreamliner from Boeing by Dec. 31.
Analysts and investors are hopeful that sales of Boeing’s Dreamliner aircraft will lead to renewed deliveries of its 737 MAX aircraft. Several high-profile crashes that had grounded MAX aircraft worldwide had halted deliveries for nearly five years. Deliveries to China are important as the company expects China to account for 20% of the world’s aircraft demand through 2042. BA stock is up 34% this year, with more growth likely in the coming months.