In the first half of 2024, all three major indexes in the U.S. market experienced positive growth. The S & P 500 gained 15%, while the Nasdaq Composite saw an 18% jump. The Dow Jones Industrial Average also had an increase of 3.8%. Traders are expressing optimism due to the artificial intelligence boom, led by companies like Nvidia. This surge in the market has been attributed to the rise of the chipmaker, driving the overall market to reach record highs in 2024. Amidst this positive momentum, traders are also closely monitoring inflation pressures, which seem to be easing. This situation could potentially lead to the Federal Reserve implementing interest rate cuts this year. There is a growing hope that the U.S. economy will achieve a “soft landing,” characterized by low unemployment rates, decreasing price pressures, and a cooling off of the economy without entering a recession.
MGM Resorts is one of the stocks identified as having the potential for gains in the U.S. market. In 2024, the company’s shares have experienced a slight decline of around 5%. However, MGM Resorts is benefiting from strong travel trends to Las Vegas, which are expected to continue throughout the summer. Despite some weaknesses in its older properties, like the Excalibur, MGM Resorts is leveraging the positive travel outlook for Las Vegas. Analysts at BTIG initiated coverage of MGM stock and expressed confidence in both the stock and the company’s future guidance. They believe that MGM Resorts is diversifying its offerings in a healthy way, which could lead to improved growth and returns for shareholders in the near and long term.
Another stock to keep an eye on for potential gains is Delta Airlines, which has become the most profitable U.S. airline known for its luxury services. In 2024, Delta’s shares have increased by more than 16%. The airline exceeded Wall Street’s earnings expectations in the first quarter and raised its outlook for the second quarter due to strong consumer demand. CEO Ed Bastian highlighted the importance of travel as an investment for consumers. Delta Airlines is focused on expanding its dominance and reputation, evident in the opening of its premium-tier airport lounge at New York’s JFK International Airport. This move is aimed at staying competitive against rival airlines like United Airlines, which are also enhancing their offerings to attract customers.
Other Stocks with Growth Potential
Apart from MGM Resorts and Delta Airlines, other stocks on the list include Axon Enterprise, known for its production of Taser stun guns and police body cameras, and ConocoPhillips. These companies have revenue exposure of 60% or more to the U.S. market and have buy ratings from at least 60% of analysts. Average analyst price targets for these stocks indicate an upside potential of at least 25%. Axon Enterprise and ConocoPhillips are positioned to capitalize on their market exposure and analyst endorsements to achieve growth in the foreseeable future.
The U.S. market is showing promise for investors looking for potential gains. Despite the fluctuations and uncertainties in the market, stocks like MGM Resorts, Delta Airlines, Axon Enterprise, and ConocoPhillips are well-positioned to deliver positive returns based on their market exposure and analyst support. As traders navigate through the evolving market landscape, keeping a close watch on these stocks could present lucrative opportunities for those seeking to capitalize on the market’s upward trajectory.