CFRA’s Sam Stovall has emerged as one of Wall Street’s biggest bulls, arguing the S&P 500 has more room for double-digit gains this year. CFRA’s chief investment strategist raised his year-end stock market benchmark target to 5,415 points from 4,940 points. New forecasts suggest full-year earnings will grow 4%, bringing full-year earnings to 13.5%. The updated target is one of the highest on Wall Street, trailing only the 5,500 target set by Oppenheimer’s John Stoltzfus. The number was also 6% higher than the average forecast of 5,105, according to the CNBC Professional Market Strategists Survey, which summarizes the targets of 14 Wall Street strategists. Stovall said he was encouraged by a strong earnings season and data showing slowing inflation. “It’s encouraging that not only do we continue to see better-than-expected earnings in 2024, but we now expect earnings to grow nearly 15% in 2025,” Stovall said Friday on CNBC’s “Squawk Box.” “We are seeing trends in the economy that could lead to further declines in inflation.” .SPX YTD Mountain S&P 500 The S&P 500 is up more than 9% this year, driven by continued gains in many large technology stocks. The market was recently boosted after Federal Reserve Chairman Jerome Powell said it was “unlikely” that the central bank’s next policy move would be to raise interest rates. “I think Fed Chairman Powell’s comments that a rate hike is highly unlikely triggered this relief rally,” Stovall said. “So I think the bull market is maintaining its upward trajectory and will continue to do so over the next 12 months. Keep the trend going. Stovall sees the S&P 500 hitting 5,610 over the next 12 months, which would be a 7.6% gain from Thursday’s close of 5,214 — CNBC’s Michael Bloom contributed reporting.
