"Goldman Sachs' January Stock Picks"

Goldman Sachs is bullish about stocks in 2024 and expects the S&P 500 to climb to 5,100.Steven Kron polled Goldman Sachs analysts for their favorite buy-rated stocks in January.He says 2024 will be volatile, but these 23 stocks have the potential for strong returns.With a new year comes a new set of resolutions. For many market watchers, the highest item on their to-do list in 2024 is simple: invest in great stocks.Of course, that's easier said than done. In January 2023, if you'd asked anyone about what they were investing in, you likely would have been warned that a recession was imminent. Now, after the S&P 500 has risen an impressive 24% in 12 months, it looks like the Federal Reserve may stick a soft landing after all. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. "Fast forward to the end of 2023, and the coast does look clear for the US economy," wrote Goldman Sachs Director of Americas Equity Research Steven Kron. "10-year Treasury yields eclipsed 5% earlier this year, but they are back below 4% now, and the Fed pivot toward a more dovish stance appears to be underway."A lot can change in just 12 months, and most of Wall Street is bullish on what the new year will bring. Goldman Sachs is particularly optimistic, having recently raised its 2024 S&P 500 year-end outlook to 5,100 after the Santa Claus rally in late December, while its economists anticipate GDP will rise 2% this year.In a recent note to clients, Kron made it clear that the market's final push higher at the end of last year was the result of economic indicators like jobs reports and inflation data that seemed to have increased the Federal Reserve's chances of cutting interest rates. This year, however, Kron expects it to be a stock picker's market."As we flip the calendar to 2024 we expect a better backdrop for idiosyncratic stock picking; with 10-year yields well off their 2023 highs (now at 3.9%, down from a peak of 5.0% just 10 weeks ago) and GDP growth expected to settle in at around 2.3% (based on our economists' estimates and similar to the 2.4% our economists expect for full year 2023)," Kron wrote.But once again, stock picking in today's economic environment is easier said than done. While investors could have simply bought and held the S&P 500 last year as it soared higher, Kron noted that they will have to contend with sky-high valuations this year, giving stocks less room to run upwards in 2024.The best stocks to buy in JanuaryThankfully, Kron can help. Since mid-2023 he has polled analysts across Goldman every month for their most differentiated investment ideas — those that stand out for the opportunity they have to enjoy strong risk-adjusted returns.Their 23 top buy-rated investment ideas for January are below. Along with each company is its ticker, price target, percent upside to that target, upside to next year's expected earnings versus consensus estimates, what share of Wall Street analysts recommend the stock as a buy, and Goldman's investment thesis.

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