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7 top stocks for 2024 according to Citibank analysts

Charles Sainsbury
29. 12. 2023
5 min read

Investors are looking for answers, and banking analysts are offering them. This time we have some interesting stock picks for 2024 from Citibank analysts. Be inspired by their selection, which includes finance, aerospace and logistics.

Although Citi economists predict a recession sometime in mid-2024, they also say that by the end of the same year the S&P 500 index will surpass its previous highs and close the year at over 5,100 points.

This optimism is coupled with the assumption that the threat of a recession has been priced into stock prices for some time and should not lead to a significant market decline.

"The key debate is precisely the extent to which investors and businesses have implicitly lowered their expectations because the recession has been in focus for more than a year. We argue that earnings will prove resilient compared to the impact of recessions in earlier years," Citi U.S. equity strategist Scott Chronert wrote in the bank's North America outlook.

Who will be the winner in 2024?

As part of the report, Citi also shared some of its top stock picks in each sector. Let's take a few examples.

From the banking sector, Citi picked KeyCorp, the parent company of KeyBank, as one of the most preferred U.S. bank stocks. Analyst Keith Horowitz currently has a target price of $15, which implies roughly 5% upside.

"Entering the credit cycle, we prefer names with below-average credit risk and strong net interest income growth potential from fixed asset repricing. Given the structure of the loan portfolio and fixed maturities, KEY may benefit most from repricing," he wrote.

Within airlines, Citi analyst Stephen Trent cited Delta as one of the top picks.

"Structural changes post-pandemic mean lower block hour usage, more mixed travel and more premium economy passengers. These trends should still strongly favor network airlines like Delta," he wrote.

Trent believes Delta could grow 36% and reach its target price of $56.

Citi analyst Jason Gursky singled out Boeing and L3Harris Technologies as two of his top picks in the aerospace and defense category. His $271 price target for Boeing implies a 4% upside, while his $238 forecast for L3Harris means the stock could rise 14%.

Gursky cited rising military spending in the U.S. and Europe and a post-pandemic recovery in air travel as catalysts for the stock.

"In our view, these dynamics should allow for improved cash flow and sustained earnings growth over the next several years for the companies in our coverage," he wrote.

Citi also listed General Motors as one of its most preferred stocks in the U.S. auto sector, FedEx for transportation and Rockwell Automation for diversified industrials.

7 stocks for 2024

$KEY+1.7% KeyCorp

This bank holding company with offices throughout the United States provides a wide range of banking services to individuals, businesses and institutions. Its long-standing market presence and strong position has made it a key player in the U.S. banking industry. Investing in this stock may be an interesting choice for investors looking for a stable and solid company in the banking industry.

KEY

KeyCorp

KEY
$14.63 $0.25 +1.74%
Capital Structure
Market Cap
13.7B
Enterpr. Val.
35.3B
Valuation
P/E
16.6
P/S
1.8
Dividends
Yield
5.6%
Payout
94.2%

$DAL-0.6% Delta Air Lines Inc.

The company operates an extensive airline fleet and operates thousands of flights daily to various destinations around the world. Delta Air Lines is one of the leading airlines in the world and emphasizes quality customer service, safety and reliability. The company's stock may be an interesting investment opportunity for those who believe in the recovery of the airline industry after global events and the prospect of increasing demand for airline services.

DAL
$47.57 -$0.28 -0.59%
Capital Structure
Market Cap
30.7B
Enterpr. Val.
53.0B
Valuation
P/E
6.1
P/S
0.5
Dividends
Yield
0.6%
Payout
3.7%

$BA-0.2% Boeing Co.

One of the largest manufacturing companies in the world, known for its innovative aerospace products, including commercial aircraft, military aircraft and spaceflight. Boeing's advanced technology, innovation and global reach give it a strong market position, and its stock is an attractive choice for investors who follow the aerospace sector and are looking for investment opportunities in leading aerospace companies with growth and innovation prospects.

BA
$169.82 -$0.41 -0.24%
Capital Structure
Market Cap
103.6B
Enterpr. Val.
143.8B
Valuation
P/E
-46.2
P/S
1.3
Dividends
Yield
-
Payout
-0.2%

$LHX+1.7% L3Harris Technologies Inc.

The company provides an extensive portfolio of products and services to the defense industry, including communications, electronics, space technology, aerospace and other areas. It is known for its ability to create advanced systems for communications, security and defense. The stock may be suitable for investors seeking to invest in the technology and defense industries.

LHX
$205.45 $3.37 +1.67%
Capital Structure
Market Cap
39.1B
Enterpr. Val.
52.4B
Valuation
P/E
31.9
P/S
2.0
Dividends
Yield
2.2%
Payout
70.7%

$GM-0.2% General Motors Co.

An automotive company with a rich history that has become one of the world's leading automakers. The company focuses on manufacturing and selling vehicles of various brands, including Chevrolet, GMC, Cadillac and Buick. The company's stock is suitable for investors who are interested in the industrial sector and are looking for a stable and established company with long-term growth potential.

GM
$42.37 -$0.07 -0.16%
Capital Structure
Market Cap
48.9B
Enterpr. Val.
152.6B
Valuation
P/E
5.8
P/S
0.3
Dividends
Yield
0.9%
Payout
5.9%

$FDX+1.4% FedEx Corp

A global transportation and logistics company that provides a variety of shipping and logistics services. The company is known for its express delivery services, including expedited air and ground delivery. The stock is an interesting choice for investors who follow the transportation and logistics sector and are looking for investment opportunities in the international delivery and logistics sector.

FDX
$266.99 $3.62 +1.37%
Capital Structure
Market Cap
65.7B
Enterpr. Val.
97.5B
Valuation
P/E
15.4
P/S
0.7
Dividends
Yield
1.9%
Payout
28.2%

$ROK-1.3% Rockwell Automation Inc.

A company specializing in industrial process automation and automated systems control solutions. The company offers a wide range of products and services, including software platforms and hardware components that help industrial businesses increase efficiency and productivity. The stock may be suitable for investors looking to invest in the technology sector with an emphasis on industrial automation.

ROK
$269.96 -$3.54 -1.29%
Capital Structure
Market Cap
30.9B
Enterpr. Val.
34.3B
Valuation
P/E
25.7
P/S
3.4
Dividends
Yield
1.8%
Payout
45.2%

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You will find a lot of inspiration on Bulios, but the final stock selection and portfolio construction is of course up to you, so always do a thorough analysis of your own. Thepractical tools within the Bulios Blackmembership are always at your disposal.

Source.


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