About: Abbott Laboratories (ABT), ARRS, AVY, EA, FDX, GG, ICE, JAZZ, RCL
Barclays analysts predict the S&P 500 will reach 2,400 by year end - reflecting 7% price appreciation and 9% total return. That would not make for a bad year at all.
Here are their other 4 predictions:
1. S&P 500 adjusted EPS will break out to at least $127/share. This follows two years of non-growth in EPS, and will be fueled by revenue expansion that will "more than offset rising wage pressure."
2. Dividends will reach $48/share, marking a 54% increase in just five years. $48/share is 5% growth Y/Y, with growth being constrained by a high payout ratio.
3. Gross buybacks unchanged at $600B. This remains close to record highs, but the rapid growth phase may have come to an end. "The wildcard is a potential change to tax policy regarding permanently reinvested earnings, which would enhance financial flexibility."
4. Healthcare will be 2017's top performing sector. This would be a complete about face; healthcare was the laggard in 2016. "With a P/E ratio that is at its 52-week low in relation to the S&P 500, no sector has better potential upside entering 2017, in our opinion."
And finally, here are Barclays' top picks for 2017. Let's see how these play out:
Source: http://seekingalpha.com/article/4033409-barclays-5-predictions-15-top-picks-2017
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