Industry Analysts Project 19% Increase in S&P 500 Price Over the Next 12 Months

Since June 30, the price of the S&P 500 has declined by 2.7% (to 4330.83 from 4450.83). Where do industry analysts believe the price of the S&P 500 will go from here?

Industry analysts in aggregate predict the S&P 500 will see a price increase of 19.0% over the next 12 months. This percentage is based on the difference between the bottom-up target price and the closing price for the index as of yesterday (September 21). The bottom-up target price is calculated by aggregating the median target price estimates (based on company-level estimates submitted by industry analysts) for all the companies in the index. On September 21, the bottom-up target price for the S&P 500 was 5152.11, which was 19.0% above the closing price of 4330.00.

At the sector level, the Information Technology (+22.8%), Consumer Discretionary (+22.7%), and Real Estate (+22.6%) sectors are expected to see the largest price increases, as these three sectors had the largest upside differences between the bottom-up target price and the closing price on September 21. On the other hand, the Energy (+10.7%) sector is expected to see the smallest price increase, as this sector had the smallest upside difference between the bottom-up target price and the closing price on September 21.

It is interesting to note that analysts currently have the highest percentage of Buy ratings on the Energy sector (64%) of all eleven sectors, while also projecting this sector will see the lowest price increase of all 11 sectors over the next 12 months.

At the company level, the 10 stocks in the S&P 500 with the largest upside and downside differences between their median target price and closing price (on September 21) can be found below. At this point in time, there are only 10 stocks in the S&P 500 with a median target price below their closing price on September 21.

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