Here’s How Much Wall Street Expects Stocks To Rise in 2025 | Global News Avenue

After two years of double-digit stock returns, Wall Street believes the S&P 500 is capable of a third straight win.

Analysts’ average estimate noted S&P 500 Index A report from FactSet Research analyst John Butters said the index would trade just above 6,679 by 2025, suggesting a gain of about 10% over the next calendar year based on Thursday’s closing price . Since its inception in 1957, the S&P 500 Annual return rate 10.23% On average.

Butters also found that Wall Street analysts are significantly underestimating the market heading into 2024. The consensus for the end of 2023 is that the S&P 500 will end the year near 5,132, more than 15% below current levels. Analysts have underestimated the stock market in four of the past five years.

However, in the long run, this underestimation is less common. Wall Street has overestimated the S&P 500’s annual returns in 13 of the past 20 years; on average, over the past two decades, the consensus has been overestimated by about 7%.

The report underscored Wall Street’s optimism about the strength of the U.S. economy and corporate profits. Morgan Stanley (multiple sclerosis) and Goldman Sachs (GS) predicted the S&P 500 will increase to 6,500 That comes as earnings growth accelerates for most of the index’s constituents next year.

In survey of financial advisors Published last monthTwo-thirds said they expected the index to rise at least 10% next year, but many warned the market could see some volatility.

The S&P 500 is on track to rise more than 20% for the second straight year, something that hasn’t happened since the 1990s. As of Thursday’s close, the index had gained 26.9% since the beginning of the year. this Dow Jones Industrial Average Increased 16.5% over the same period Nasdaq Composite Index Soared by about 32.6%.