S&P 500 Price Projection: Potential 100% Growth

Ben Laidler, Bradesco BBI's head of equity strategy, believes the bull market is in its early stages, driven by an anticipated earnings recovery and potential Fed rate cuts.

He forecasts possible stock gains of 100% over five years, supported by expected 15% annual earnings growth and potential multiple expansions due to lower interest rates.

Since October 2022, the S&P 500 has surged 55%, fueled by AI sector optimism, boosting stocks like Nvidia and Apple to record highs.

In 2024, the Dow Jones Industrial Average surpassed 40,000 and the S&P 500 exceeded 5,000, with a robust 15.3% gain in the first half, among the strongest starts since 1950.

The upcoming earnings season, starting with JPMorgan and Wells Fargo, will test Laidler’s outlook. FactSet projects an 8.8% earnings growth for S&P 500 firms in Q2, the highest since early 2022, marking four consecutive quarters of growth.

Laidler emphasized a fundamentally supported market with rebounding earnings and anticipated rate cuts, while Goldman Sachs portfolio manager Brook Dane remains optimistic about AI stocks despite recent gains.