These stocks will be the biggest Dow winners of 2024, according to analysts

Published Fri, Dec 29 20239:36 AM ESTUpdated Fri, Dec 29 202311:13 AM EST

Investor optimism toward easing monetary policy has steadily boosted the Dow Jones Industrial Average to new heights, and some members could see even more momentum in the new year. The Dow broke into record territory earlier this month, after the Federal Reserve signaled it may cut rates three times in 2024. For December alone, the benchmark is up nearly 5%. It's also up 13.8% year to date. Tech stocks have largely led its advances, with the index's highest gainers — Salesforce , Intel , Microsoft and Apple — respectively up 100%, 91%, 57% and 49% for the year. Despite the Dow's strong performance overall, there are some struggling names within the average that are primed for gains in 2024. CNBC Pro screened for stocks in the Dow with the biggest potential upside, according to consensus price targets. Of the nine names expected to return more than 10% going forward, seven are slated to post year-to-date declines in 2023. Chevron, the Dow's second-biggest loser, is expected to post the biggest gain of any of the 30 stocks. Most analysts covering the oil and gas corporation have assigned it a buy rating and expect it to rally more than 17%, LSEG data shows. UBS analysts listed Chevron stock as one of their highest conviction stock picks to buy for the new year. Wells Fargo is similarly bullish on the name, reiterating its overweight rating earlier this month . Wells Fargo analyst Roger Read underscored Chevron's leading position for dividend growth in its sector. This, combined with the company's strong cash flow generation and relatively disciplined capital expenditures, could boost shares up 32% to his $197 price target. Analysts on average also see upside of nearly 16% for Nike , which is down 8% in 2023. The athletic apparel and footwear company has been plagued by digital traffic softness and increased macro headwinds overseas, causing it to unveil new cost-cutting measures and slash its revenue outlook for the fiscal year. While TD Cowen analysts downgraded the stock to market perform from outperform this month — citing increased disruptions from smaller competitors — Goldman Sachs said it was sticking with its buy rating . "On the other hand, we believe [this month's] update provided ample fodder for bears, with slowing growth momentum as a result of a tougher macro pointing to a more promotional competitive marketplace, and the company now speaking more comprehensively to key franchise life cycle management which will weigh on sales momentum going forward," Goldman Sachs wrote. Shares of entertainment conglomerate Walt Disney have gained just 4% this year, underperforming the Dow. But most analysts covering the stock have assigned it a strong buy or buy rating. On average, they see a 15% rally ahead for the stock. Wells Fargo named the stock as one of its top ideas for 2024 , citing earnings upside on the company's direct-to-consumer business. Bank of America reiterated Disney at a buy rating heading into the new year, noting its strong portfolio of "best-in-class premiere assets" in both content and amusement parks. BofA added: "Near term catalysts include: 1) additional updates on strategic priorities for DIS, 2) continued robust theme park demand." Retail giant Walmart is also expected to gain 13%. Deutsche Bank reiterated its buy rating on Walmart, calling the stock "compelling." KeyBanc analyst Bradley Thomas named Walmart one of its top retail picks for 2024 . "We continue to watch consumer credit conditions closely, and softer housing activity will be a headwind for home-related spending in 1H. This backdrop favors WMT," Thomas wrote. Other Dow stocks that analysts predict could return 10% or more include UnitedHealth , Johnson & Johnson and Coca-Cola .