The America trade: These stocks highly exposed to the U.S. are primed to outperform

Published Wed, Jul 3 202411:59 AM EDT

A handful of stocks partial to the U.S. market could see strong gains ahead. All three major indexes are coming off of a winning first half of 2024. The benchmark S & P 500 gained 15%, trailing the Nasdaq Composite's 18% jump. The Dow Jones Industrial Average added 3.8%. Traders continue to signal optimism tied to the artificial intelligence boom, which has been led by Nvidia. The rise of the chipmaker helped lift the broader market to all-time highs in 2024. Those moves come as traders assess inflation pressures, which appear to be abating and could give the Federal Reserve enough room to cut interest rates this year. Hope is growing that the U.S. economy will achieve a so-called soft landing, during which the unemployment rate stays low, price pressures continue a downward trajectory and the economy cools off but avoids a recession. Against this backdrop, CNBC Pro screened FactSet data for stocks that are largely exposed to the U.S. market where analysts expect to see gains, abiding by the following criteria: Each stock maintains revenue exposure of 60% or more to the U.S. Shares have buy ratings from at least 60% of analysts Average analyst price targets imply upside of at least 25% MGM Resorts made the list. Shares of the casino operator have ticked down roughly 5% in 2024. The company is benefiting from robust travel trends to Las Vegas , which are expected to continue throughout the summer despite some slight weakness at its older properties like the Excalibur. BTIG initiated coverage of MGM stock in a Tuesday note and said that both the stock and the company's forward guidance should benefit, easing concerns about how long the Las Vegas boom can continue. MGM YTD mountain MGM Resorts stock. "Near-term, we see room for upward estimates revisions, driven by Vegas and China, and healthy capital returns with possible kickers from China dividends (more likely) and/or Regionals property sales (less likely)," analyst Clark Lampen said. "[T]he MGM story is diversifying in a healthy way. As that happens, growth should improve, the equity base continue to shrink, and we see several ways for shareholders to win in both the near and medium/long term," he added. Delta Airlines , which also made the cut, has become the most profitable U.S. airline thanks to its reputation as a luxury option. Shares of the Atlanta-based airline have added more than 16% in 2024. First-quarter earnings surpassed Wall Street's estimates, and Delta upped its second-quarter outlook thanks to strong consumer demand. In April, Chief Executive Ed Bastian told CNBC that "consumers continue to prioritize travel as a discretionary investment in themselves." DAL YTD mountain Delta Airlines stock. Delta is looking to expand both its dominance and reputation and recently opened its first premium-tier airport lounge at New York's John F. Kennedy International Airport. The lounge is an attempt to stave off competition from rival United Airlines, which is also looking to woo customers with upscale offerings. Other stocks on the list include Axon Enterprise , which makes Taser stun guns and police body cameras, and ConocoPhillips .