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Oppenheimer's bold call: 2,311 for the S&P 500 by year-end

Bull sculpture market
Adam Jeffery | CNBC

After another dizzying week in the markets, as U.S. stocks staged a rebound Wednesday afternoon. But the mood nervous amid extended volatility.

The S&P 500 dipped in and out of correction territory, defined as ten percent away from its 52-week high.

The Dow Jones industrial average and Nasdaq composite remained in correction mode in a choppy trading session.

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Despite the whipsaw swings, as stocks recovered from the worst start to a September in 13 years, John Stoltzfus, chief market strategist at Oppenheimer Asset Management, remained firmly bullish.

Stoltzfus told CNBC's "Power Lunch" Wednesday he stands by his 12 month target for the S&P 500 of 2,311, and earnings per share forecast of $126.

"We expect earnings to recover from weakness in the first half and China and Greece worries to recede as stateside and global growth more clearly reasserts itself and gains momentum from the fall through the end of the year," said Stoltzfus. "We're building a platform into September based on fundamentals. There are good opportunities if you think earnings can be driven by GDP."

Oppenheimer's asset allocation is currently 60 percent in stocks, 20 percent in bonds, ten percent in real estate, and another five percent each in cash and alternatives.

Oppenheimer's bold S&P 500 call: 2,311 by year-end

Stoltzfus favors cyclical sectors over defensive sectors for the near and intermediate term, and remains"market cap agnostic," with exposure distributed among large, mid-and small-cap stocks.

"Keep your shopping list of stocks handy," said Stoltzfus. "Good buys are likely to present themselves."

His top sectors to overweight versus benchmark weight remain consumer discretionary, information technology and financials. Stoltzfus maintains a market weight versus the benchmark on consumer staples and prefers to be underweight the utilities, telecoms and energy sectors

Contrarian bets include materials and industrials, while health care remains a favorite among defensive sectors.

"Ultimately we expect that modest upward tweaking of the rates by the Fed will be well taken by the markets as was the tapering of QE though not without a taper-tantrum in 2013." said Stoltzfus. "A moderate move toward normalization by the Fed should provide for the uncertain markets that indeed things are officially getting better."

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Tony Dwyer, Canaccord Genuity's chief U.S. strategist, has the most bullish forecast on Wall Street, calling for the S&P 500 to climb to 2,340 by December. Goldman Sachs' David Kostin and Barclays' Jonathan Glionna are tied at 2,100 for the least optimistic forecast.

Stefanie Kratter contributed to this article