Expectations for Continued Stock Market Growth into 2025, with Strong Technical Indicators and Sector Resilience

Oppenheimer's technical analyst Ari Wald anticipates continued stock market gains into 2025, citing strong market breadth with over 60% of stocks on the NYSE above their 200-day moving average. This suggests a resilient market, with few indicators of an impending peak. Wald advises buying the breakout to new cycle highs in the S&P 500, with a stop-loss at 5,650. His target of 6,000 by mid-2025 represents a potential 5% gain from current levels.

In the dynamic world of finance, the stock market's trajectory is a subject of constant debate. However, Oppenheimer's Head of Technical Analysis, Ari Wald, presents a compelling case for continued gains into 2025 [1]. According to Wald, the strong market breadth with over 60% of stocks on the New York Stock Exchange (NYSE) above their 200-day moving average indicates a resilient market, far from the peak [1].

Wald's perspective is reinforced by the S&P 500's defense of its 50-day average and the fresh inflection in the weekly Moving Average Convergence Divergence (MACD) [1]. These technical indicators suggest the index is on the road to recovery and may even reach 4,600, a 12% increase from current levels, by year-end [1].

Two stocks that could potentially benefit from this continued upward trend are Carlyle Group (CG) and another yet-to-be-mentioned company. Let's delve deeper into Carlyle Group's performance.

A global alternative asset management firm, Carlyle Group, boasts an impressive $376 billion in assets under management (AUM) [2]. The company's business is divided into three segments: Global Private Equity, Global Credit, and Global Investment Solutions [2]. With a proven track record of producing returns in each category, Carlyle's private equity annualized gains stand at 15%, while private credit annualized gains are at 10% [2].

Despite the year's significant losses, the latest quarterly results, released last week, brought positive news to investors. Total segment revenue increased by 26.2% year-over-year to $1.16 billion, surpassing the $1.1 billion consensus estimate [2]. The bottom line also showed improvement, with adjusted earnings per share (EPS) of $1.17 coming in above the $1.04 forecast [2].

Year-to-date, Carlyle's total assets under management have grown to $376 billion, marking a 25% uptick [2]. The company's strong performance is a testament to its ability to weather market volatility and capitalize on opportunities, making it a potential candidate for continued growth in the coming years.

Stay tuned for the next article, where we will explore another top stock pick from Oppenheimer and delve deeper into the reasons behind its potential upside.

References:
[1] Oppenheimer says SP 500 could rise another 12 by year-end, and these stocks could follow. (2022, July 28). Retrieved from https://www.nasdaq.com/articles/oppenheimer-says-sp-500-could-rise-another-12-by-year-end-and-these-stocks-could-follow
[2] Carlyle Group, Inc. (CG) Company Profile. (n.d.). Retrieved from https://www.tipranks.com/stocks/CG/profile