XLY - Jefferies raises its S&P 500 year-end target to 4500
2023-08-15 10:07:16 ET
Jefferies' equity research team upgraded its year-end S&P 500 ( SP500 ) target on Tuesday morning as the financial institution noted tailwinds from easing inflation, positive economic surprises and earnings downgrades that have faded.
“Our new base case for the S&P 500 year-end target is 4500 (previously 4050),” Jefferies outlined in an investor note. The investment firm went on to add: “Our bull case of 4850 (previously 4650) assumes FY24 EPS witness almost no cuts and PE of c.20x. Lastly, our bear case of 3500 remains the same factoring in a dotcom like recession.”
Furthermore, the financial institution went on to say: “Looking at the rest of 2023, we still see growth staying low, and hence, prefer sectors with earnings momentum led by communication services; industrials and consumer discretionary; while avoiding financials, healthcare, and energy.”
For investors that feel the same way as Jefferies they can look towards exchange traded funds that offer exposure to the above-mentioned sectors.
Communications Services ETFs
- Communication Services Select Sector SPDR Fund ( NYSEARCA: XLC )
- Vanguard Communication Services ETF ( VOX )
- Fidelity MSCI Communication Services Index ETF ( FCOM )
Industrial ETFs
- Industrial Select Sector SPDR Fund ( NYSEARCA: XLI )
- Vanguard Industrials ETF ( VIS )
- Fidelity MSCI Industrial Index ETF ( FIDU )
For further details see:
Jefferies raises its S&P 500 year-end target to 4500