Citi Says S&P 500 Is Headed to 7,700 – Here Are 2 Stocks to Buy Now

Market strategists are citing geopolitical concerns as the chief driver of uncertainty these days, a fact that should surprise no one who follows the news. The Middle East war sparked both a sharp drop in March and a spike in energy prices – yet equities have rebounded strongly since late March, with the S&P 500 jumping no less than 12.5%.

But it’s not over yet. Citibank is laying out a constructive environment for investors this year, noting: “While geopolitical outcomes will remain in the driver’s seat, our price targets imply continued upside for global equities from here. This direction of travel should be supported by solid forecasted EPS growth. We had previously argued that stretched valuations could cap future upside if EPS didn’t deliver; but multiples have now reset somewhat lower without accompanying analyst downgrades thus far… We see the S&P 500 reaching 7,700 by year-end.”

That S&P prediction represents a gain of nearly 8%, and Citi analysts have followed up with recommendations on two stocks to buy now. We’ve opened the TipRanks database to dig into the details on these picks – here’s a closer look.

Adient (ADNT)

Citi’s first pick is a leader in the global automotive seating market. Adient was founded in 2016 and keeps its operational headquarters in Plymouth, Michigan, not far from Metro Detroit’s historic – and current – automotive industry. The company supplies automotive seating, as well as the associated parts and hardware. Adient delivers seating solutions for all of the major OEMs in the business, and employs over 65,000 people in some 200 manufacturing and assembly plants in 29 countries.

Adient provides everything needed for complete automotive seat systems. These products include everything from advanced foam fillings, to fabric and leather trims, to the supporting structures and mechanisms. In addition, the company has working agreements with major auto manufacturers to provide seating for some of the market’s most popular programs.

Among these are the Ford F-series trucks – the best-selling trucks in the US for nearly 50 years. This will stand Adient in good stead going forward, as will the ‘aging up’ of the Millennials/Gen Z group to more passenger-intensive vehicles such as family sedans, minivans, and SUVs.

Turning to the financials, the company delivered a solid fiscal 1Q26 (December quarter) report. The results showed a top line of $3.64 billion, up 4.3% from the prior year and almost $167 million better than had been expected. Adient’s bottom line in the quarter, reported as a non-GAAP EPS of 35 cents, beat the forecast by 16 cents per share.

Citi’s Michael Ward covers this stock, and notes that the company has a sound foundation, writing, “By our estimates, second half fiscal 2026 production of the F-series, ADNT’s most important program, is expected to increase 10% as Ford replenishes depleted inventory. In addition, we believe ADNT is among the best positioned to benefit from increased demand of People Carriers as the Millennials and Gen Zer’s move into the prime age group for the auto sector…”

Ward outlines several additional reasons why investors should expect further growth, here, adding to the above: “ADNT’s growth and margin are below the Group average, but content is among the highest, providing upside leverage in an increasing production environment. The lower capital needs of the seating segment, high content and inventory turns provide strong cash flow in an improving demand environment. ADNT is the lowest valued supplier on an EV/Revenue metric.”

In quantifiable terms, these comments give support to Ward’s Buy rating on ADNT shares. His price target, set at $33, implies that the shares will gain 52% by this time next year. (To watch Ward’s track record, click here)

The 9 recent analyst reviews here break down to 5 Buys, 3 Holds, and 1 Sell, for a Moderate Buy consensus rating. The shares have a trading price of $21.68, and the $27.44 average price target points to a 26.5% one-year upside potential. (See ADNT stock forecast)

Atlas Energy Solutions (AESI)

The second of Citi’s stock picks that we’ll look at here is Atlas Energy Solutions, a company that bills itself as a ‘solutions provider’ to the energy industry. Atlas provides a wide portfolio of services, including oilfield logistics, distributed power systems, and the Permian Basin’s largest supply network of proppants, that is, frac sands. The Permian, straddling the Texas/New Mexico border, is North America’s most active hydrocarbon basin, and Atlas is an important service supplier to the Permian’s energy industry.

The company’s historical core business is in proppant supply. Atlas’ Dune Express is the largest proppant conveyor system in North America, a 42-mile transportation solution that redefines efficiency in the Permian’s oil and gas extraction sector. The Dune Express starts in Kermit, Texas, at Atlas’ frac sand mining operation, and extends to Lea County, New Mexico, just over the state line. The system is capable of transporting 13 million tons of proppant annually, and features two permanent loadout facilities.

In addition to the Dune Express conveyor, Atlas also provides a set of safe, technologically advanced logistics services, including 24/7 in-field support and last-mile delivery on a range of proppants and frac sands.

Finally, Atlas is also an important power supplier to the industry. The company provides turnkey solutions for grid-independent private power installations, capable of easing constraints in equipment lead times and system interconnections, and avoiding operational delays. Atlas offers these on-site power solutions as end-to-end systems, engineered for performance and reliability. The company supports its power systems from the initial design all the way through commissioning and operation.

In March of this year, Atlas announced a global agreement with Caterpillar, Inc., to provide a series of incremental power generation assets, totaling 1.4 gigawatts. The orders are scheduled to run from 2027 through 2029. The Cat agreement puts Atlas on track to own and operate some 2.0 gigawatts of power assets by 2030.

5-star analyst Scott Gruber covers this stock for Citi, and sees the company on a clear upward track. He writes, “Estimates are likely to move higher for AESI in 2H as consensus incorporates the bridge power agreement and sand logistics margins improve. We also see upside to sand pricing in 2027 to ~$18/ton, still below our long term $20/ton forecast. The CAT supply agreement, growth in Texas power demand and competitors’ focus on data centers points to incremental PPA contracts at attractive pricing…”

Gruber’s stance informs his Buy rating on the stock, while his $18 price target points to a potential one-year upside of 17%. (To watch Gruber’s track record, click here)

That’s a bull’s view but the Street’s overall take is less optimistic. Atlas Energy Solutions has a Hold consensus rating, based on 9 recent ratings that include 3 Buy, 4 Hold, and 2 Sell. The stock’s trading price of $15.43 and average target price of $13.71 together imply a downside of 11% in the next 12 months. (See AESI stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.