The first half of 2024 may not see big gains for the entire stock market, but there are still plenty of likely winners for investors to bet on, according to BTIG. The investment firm unveiled its top picks for the first half of the year in a note to clients Tuesday, complete with some technical analysis from strategist Jonathan Krinsky. The strategist believes the market will look much different than the tech-led rally in the first half of 2023. “We think [S & P 500] can make a marginal new high early in 2024, perhaps challenge ~5,000, but ultimately expect a wide trading range as rotations persist beneath the surface. Initial support comes in around 4,600, and with 4,200-4,300 as major long-term support,” Krinsky said in the note. One sector that could benefit as investors change tack is health care, which underperformed in 2023. Abbott Laboratories is a top pick in the sector for BTIG, and the note highlighted a potential “false breakdown” for the stock in October that could signal a strong rally is now underway. ABT 1Y mountain Abbott Laboratories has rebounded from an October sell-off Health-care stocks are leading the S & P 500 so far in January, rising 2.4% against the broad index’s loss of 1.1%. Another of BTIG’s top picks with a favorable price chart is Okta , which could be poised for a breakout after stabilizing in recent months. Expedia has gone up 6% since the end of November and appears to have room to run before hitting its next major resistance level, according to BTIG. EXPE 3M mountain Expedia’s December rally could be just the beginning of a larger move, according to BTIG. Another part of the rotation for the stock market could come from a strong performance in small- and mid-cap stocks, which benefited from newfound momentum in the fourth quarter. That group could continue to close the gap to mega-cap tech in the first half, according to BTIG. “As we head into 2024, the big question is: can the broadening we began to see over the last two months continue, or do we see some pullback in the mega-cap tech names? The easy answer is we think a bit of both,” Krinsky said. Two of BTIG’s top small-cap picks that have gained steam recently are shoemaker Steve Madden and software company GitLab . Those stocks are up 28% and 31%, respectively, over the past three months. — CNBC’s Michael Bloom contributed reporting.
