RBC Capital Markets has raised its target for the S&P 500 to 8,150, indicating that the current bull market still has significant potential for growth. The firm has identified Meta Platforms and Honeywell Aerospace as key stocks poised for outperformance in the latter half of 2026.

Market Context and Projections

RBC strategist Lori Calvasina cited robust earnings growth, a favorable GDP environment, and cautious investor sentiment as contributing factors supporting a market rally. The Federal Reserve has maintained interest rates, although new Chair Kevin Warsh has indicated that future hikes may occur if inflation remains persistent.

Meta Platforms' Growth Strategy

Meta reported $56.3 billion in revenue for Q1 2026, reflecting a 33% year-over-year increase and surpassing estimates by over $755 million. With earnings per share of $10.44, up 62% from the previous year, the company is heavily investing in artificial intelligence, planning to spend $135 billion in 2026, which is nearly double its expenditure for 2025. This funding aims to enhance AI capabilities, data centers, and the development of proprietary AI processors.

Most of Meta's revenue, nearly 98%, is derived from digital advertising, supported by a 19% increase in ad impressions and a 12% rise in the average price per ad. Analyst Brad Erickson believes Meta's extensive behavioral data, originating from over 40% of the global population, positions the company to pivot beyond advertising, potentially transforming into an "automated incubator" for new business ventures. Erickson maintains an Outperform rating with a price target of $810, suggesting around 39% upside from the current trading price of about $582.90, with an overall consensus on Wall Street rating it as a Strong Buy.

Honeywell Aerospace's Independent Trajectory

Following its recent separation from Honeywell International, Honeywell Aerospace began trading as a standalone entity on June 29, with a market capitalization of approximately $78 billion. This company, headquartered in Phoenix, focuses on sectors including commercial aviation, defense, and space, supplying avionics found in 90% of global aircraft and having delivered more than 100,000 auxiliary power units since 1959.

Honeywell Aerospace is recognized for securing key contracts, particularly sole-source status on auxiliary power units for the Boeing 737 and Airbus A320. Analyst Ken Herbert, ranked in the top 1% of Wall Street analysts, rates the stock as Outperform with a price target of $300, indicating a potential 21% increase from its current price of approximately $247.15. The broader consensus on this stock is categorized as Moderate Buy, featuring 2 Buys and 5 Holds from seven analysts, with an average price target of $263.13.