Industry Analysts Project 7.5% Increase in S&P 500 Price Over the Next 12 Months

After recently closing at a record-high value, 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 7.5% over the next twelve months. This percentage is based on the difference between the bottom-up target price and the closing price for the index as of yesterday (July 2). 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 July 2, the bottom-up target price for the S&P 500 was 6,694.55, which was 7.5% above the closing price of 6,227.42.

At the sector level, the Health Care (+15.9%) and Energy (+13.5%) sectors are expected to see the largest price increases, as these two sectors had the largest upside differences between the bottom-up target price and the closing price on July 2. On the other hand, the Financials (+3.2%) and Industrials (+4.2%) sectors are expected to see the smallest price increases, as these two sectors had the smallest upside differences between the bottom-up target price and the closing price on July 2.

At the company level, the ten stocks in the S&P 500 with the largest upside and downside differences between their median target price and closing price (on July 2) can be found below.

It is interesting to note that after falling to a recent low of 6,526.43 on May 14, the bottom-up target price for the S&P 500 has increased by 2.6% (to 6,694.55 from 6,526.43) over the past several weeks. At the sector level, nine sectors have recorded an increase in their bottom-up target price since May 14, led by the Information Technology sector at 5.4% (to 5,347.32 from 5,074.39). 

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