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Barron's Recap: A Bullish Outlook for 2014

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Barron's Recap: A Bullish Outlook for 2014

This weekend in Barron's online: a special report on the outlook for 2014. Also, the prospects for eBay, YPF, Innophos Holdings and more.

Cover Story

"An Upbeat View of 2014" by Vito J. Racanelli.

After the crazy ride of the past six years, Wall Street analysts see things settling down to normal in the coming year, according to this week's cover story in Barron's. Stocks should rise some 10 percent, boosted by a stronger economy and higher corporate profits, while the Federal Reserve eases off on quantitative easing and interest rates edge higher.

In coming up with its outlook for 2014, Barron's consulted 10 strategists. They have year-end targets for the S&P 500 that range from 1,900 to 2,100, with a mean of 1,977, compared with Friday's close of 1,775.32. And they expect that rise to come on the back of corporate earnings growth that is stronger than in recent years.

See the article for some bumps in the road that the consultants think could knock things off track. The article also discusses specifics on expectations for corporate earnings, as well as for economic numbers, and an outlook for particular sectors. Some investment risks are spelled out as well, and the article concludes with the consensus view for the coming year.

Sidebars include a 2013 scorecard and a link to a 2013 timeline, what each of the strategists individually forecast for 2014, specific stock picks for the new year and a sector snapshot.

Feature Stories

"How PayPal Could Drive eBay Higher" by Jack Hough discusses why analysts see more upside for eBay than for Amazon.com, Facebook or Twitter. "Ebay is very visible and maybe boring, but it delivers." See why eBay could rise as much as 20 percent.

Andrew Bary's "An Educated Bet on Argentina" suggests that YPF's shale-oil and shale-gas reserves could be worth three times the stock's current quote. Furthermore, the Argentinian government has a big stake in the success of this vertically integrated Argentine energy company.

In "Perfect the Ingredients," David Englander makes a case for shares of additive maker Innophos Holdings to jump 30 percent as it fixes manufacturing problems and benefits from lower commodity prices.

How to play a decline-and-recovery scenario for 2014 is featured in the article "Time to Brace for a 20% Correction," authored by Richard Rescigno. See why Ned Davis Research expects the new year to offer a buying opportunity.

"Intrepid Investing" by Amy Feldman offers a profile of Roger Edgley, portfolio manager of Wasatch International Group. See how Edgley searches for up-and-coming companies in far-flung places, from Hong Kong to the Hague.

In Leslie P. Norton's "Embracing the J&J Credo" the CEO spotlight is turned on Alex Gorsky of Johnson & Johnson. For a guide to the company's future, he turned to a document written 79 years ago by a scion of the firm's founding family.

The aging U.S. population and growing federal debt are putting the federal budget on an unsustainable path, Gene Epstein says in "The Budget Deal Stabilizes Nothing." See why the new budget deal does not help the situation.

Avi Salzman points out in "Stocks Slide 1.65% on Week on Taper Fears" that last week the stock market registered the steepest weekly loss in three months. In addition, see why it may be time to check out of Hilton's new shares.

"A Working Economy" is an editorial commentary by Thomas G. Donlan in which he suggests that the great American achievement is to make more with less.

See also: Will Dividend Stocks Be The Big Winners In The Budget Deal?

Columns

Columns in this weekend's Barron's discuss:

  • How the Volcker Rule complicates things
  • Hopes for economic growth in 2014
  • The prospects for Athenahealth
  • The risks in low-volatility exchange traded funds (ETFs)
  • The value in shareholder letters
  • Extra dividends from Buckle, Progressive, CBOE and others
  • How to play Obamacare and Dodd-Frank flaws
  • Why Deckers Outdoor looks overvalued

See also: GE Board Approves 16% Increase In Quarterly Dividend

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Posted-In: Amazon.com athenahealth Barron's Buckle cboe Deckers Outdoor Dodd-FrankMedia Best of Benzinga

 

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