Analysts at one of the world’s largest bank, Bank of America, have named the most promising shares from the S&P 500. Among the 505 American stocks included in this index, experts have selected one security for each sector.
Since the beginning of the year, the stock market index has risen from 2448 points to 3240 points, that is, growth amounted to 29% over the year. The bank expects the US stock market to continue to grow in 2020 by about 6% from current levels. The target for the S&P 500 index at the end of the year may be a mark of 3,300 points, according to experts at Bank of America. In the next ten years, the stock market will grow by an average of 5% per year.
In their review of the outlook for the US stock market, analysts noted that the risks associated with the trade conflict have decreased, and macroeconomic signals are showing signs of stabilization. Taking into account these factors, the securities that are worth paying attention to in 2020 are:
- In the Communication Services sector, stocks of Walt Disney, a world leader in the entertainment industry that operates film studios and theme parks;
- In the Consumer Staple sector, the most interesting were the shares of one of the world’s largest producers of pork, beef and chicken Tyson Foods;
- In the Consumer Discretionary sector, the most attractive paper is the largest US retailer of used cars CarMax;
- In the energy sector, bank experts noted the shares of the oil and gas giant Exxon Mobil;
- Utilities shares, which bring stable dividends, will help insure against sudden movements on the retail space. In this sector, experts highlighted the shares of American Electric Power – a company engaged in the generation and distribution of electricity in the United States;
- In the financial sector (Financials) the experts named the shares of one of the largest American banks Citigroup;
- In the field of healthcare (Health Care) – the manufacturer of dental equipment and consumables Dentsply Sirona;
- In the industrial sector (Industrials) – shares of the American military-industrial company Raytheon Company;
- In the information technology sector, Bank of America experts named the shares of the processor manufacturer Intel as the most attractive securities;
- In the Materials sector – shares of paper and packaging manufacturer WestRock Company look promising;
- In the real estate sector, experts noted the shares of the Kimco Realty Corporation fund, which specializes in investments in shopping centers.