Analysts Predict That These Stocks Will Be the Biggest Dow Winners in 2024

Investor confidence in the prospect of relaxed monetary policy has consistently propelled the Dow Jones Industrial Average to unprecedented heights, with indications suggesting that the momentum may persist into the upcoming year.

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Earlier this month, the Dow surpassed previous records following signals from the Federal Reserve indicating a potential three-rate cut in 2024. The benchmark has experienced a substantial uptick of nearly 5% for December alone and an impressive year-to-date increase of 13.8%.

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The driving force behind these advances primarily stems from the technology sector, with key players such as Salesforce, Intel, Microsoft, and Apple witnessing remarkable gains of 100%, 91%, 57%, and 49%, respectively, over the course of the year.

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Despite the overall strong performance of the Dow, there are specific constituents within the average that have faced challenges but are anticipated to rebound in 2024.

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A CNBC Pro analysis focused on Dow stocks with significant potential for an upswing, as per consensus price targets. Out of the identified names expected to yield returns exceeding 10%, seven are projected to recover from year-to-date declines in 2023.

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Chevron, currently the second-largest decliner in the Dow, is poised for the most substantial gain among the 30 stocks. A majority of analysts covering the oil and gas corporation advocate for a buy rating, anticipating a rally of over 17%, according to data from LSEG.

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UBS analysts have included Chevron stock among their top conviction picks for the new year, a sentiment echoed by Wells Fargo, which reiterated its overweight rating earlier this month.

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Wells Fargo analyst Roger Read emphasized Chevron's leading position for dividend growth within its sector. The combination of robust cash flow generation and disciplined capital expenditures is anticipated to propel shares by 32%, reaching the target price of $197.

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Analysts also foresee an upward trajectory of nearly 16% for Nike, despite an 8% dip in 2023. The athletic apparel and footwear company has encountered challenges such as digital traffic softness and macroeconomic headwinds, prompting cost-cutting measures and a revised revenue outlook.

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While TD Cowen analysts downgraded the stock due to increased disruptions from smaller competitors, Goldman Sachs maintained its buy rating, acknowledging challenges but highlighting the potential for a more competitive marketplace.

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Walt Disney, with a modest 4% gain this year, has underperformed compared to the Dow. Nonetheless, most analysts covering the stock advocate for a strong buy or buy rating, foreseeing a 15% rally ahead.

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Wells Fargo identified Disney as one of its top ideas for 2024, citing earnings upside in the company's direct-to-consumer business. Bank of America reiterated Disney as a buy, emphasizing its robust portfolio of "best-in-class premiere assets" in content and amusement parks.

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Retail behemoth Walmart is also expected to experience a 13% gain. Deutsche Bank maintained its buy rating on Walmart, considering the stock "compelling." KeyBanc analyst Bradley Thomas listed Walmart as one of its top retail picks for 2024, emphasizing the company's resilience in the face of potential headwinds in consumer credit conditions and softer housing activity.

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Other Dow stocks predicted to yield returns of 10% or more include UnitedHealth, Johnson & Johnson, and Coca-Cola.