Bank of America stocks to buy now
Following are the worldwide “FOMO” (fear of missing out) equities Bank of America analysts have identified, six of which have been added to their buy-rated list.
“Despite choppy markets and fiddly risk sentiment, EEMEA equities continue to see inflows,”. According to the analysts, cash is pouring into such stocks as a result of tighter regulations in China, which “opens up space for rotation to the other EM markets.”
“Second, equities are less vulnerable to central bank tightening than bonds, so cross-asset relocation into EEMEA stocks has continued,” the analysts said, as the Federal Reserve Bank is expected to withdraw its easy monetary policy and reduce the amount of bonds it purchases before the end of the year.
The six new stock picks from the bank are either part of the MSCI Emerging EMEA index or part of BofA’s global research into emerging market stocks in countries such as Russia, Turkey, and the United Arab Emirates. They also each have a daily revenue of at least $1 million.
The selections come from a review of 33 global emerging markets funds by BofA.
Etisalat, an Emirati telecoms company, and Turk Telekom, a Turkish firm, are two of BofA’s “Top 15 FOMO” picks. They are new additions to the bank’s list of buy-rated stocks that are “least-owned” by investors. BofA also included the financial firms Erste Bank, based in Vienna, and Alpha Bank, based in Greece.
Netcare, a private health firm, and Barloworld, an industrial conglomerate, are both new entrants on BofA’s FOMO list. In May, Barloworld reported a 400% increase in earnings per share for the six months ending March.
Russian energy giant Gazprom, Polish copper producer KGHM, and South African energy firm Sasol, as well as financial firms Emirates NBD, Qatar National Bank, and South Africa’s Standard Bank, are already on BofA’s list.
Goldman Sachs top picks
According to Goldman Sachs analysts in an Aug. 30 research note, Weber has a “solid growth story tied to the investing in the home theme with high brand awareness and global scale.” The bank initiated coverage of the stock with a buy rating.
Zevia, a zero-calorie drinks company based in the United States, was added to Goldman’s coverage on August 16, with analysts describing it as “an emerging, fast-growing beverage company that checks all the boxes of an on-trend consumer brand.” The bank’s 12-month price target is $28, representing a significant increase from the company’s current share price of around $14.30.
Wise, whose London listing saw the company valued at around $11 billion in July, is a Goldman pick for being a “founder-led business that offers a scarce growth profile in Europe – combining high growth with high margins in a very under penetrated market,” according to a research note published on Aug. 17.
On August 12, Goldman began covering H-shares of Chinese automaker Li Auto and added the stock to its conviction list (H-shares are listed on the Hong Kong stock exchange and can be traded by people outside China).
Last month, the bank added Indian spirits company Radico Khaitan to its conviction list and began covering the stock on August 10, with analysts praising its premium launches in vodka, gin, and whiskey. According to the analysts, led by Aditya Soman, the company will also benefit from the reopening of shops and bars as Covid lockdowns are lifted.
On August 28, Goldman added Zomato, an Indian food delivery platform, to its coverage, with analysts praising its “strong execution, large restaurant review platform, and initial focus on less competitive cities.” Goldman assigned the stock a 44 percent potential upside to its 12-month price target.
On August 11, Goldman began coverage of Hoya, a Japanese optical company, citing its “management capability, high profitability, and advanced corporate governance structure,” as well as a “big fish in a small pond” strategy. Analysts see high profit potential, they add.
Blend Labs, a mortgage technology company, was added to the bank’s coverage on August 10, with analysts praising the American firm’s ability to upsell products to consumers, potential to expand into other financial products, and “best-in-class” technology platform. According to analysts, the stock has a potential upside of more than 50% to the bank’s price target.
On August 24, Goldman initiated coverage of food company Dole, with analysts commenting on the company’s presence in the United States and Europe, as well as its investment in “higher growth, margin accretive, sub-categories” such as healthy and natural food. The bank was also pleased with its logistics network and centralized purchasing.
Kindstar Globalgene Technology, a Chinese lab testing company, was added to Goldman’s coverage on August 18, with analysts highlighting its presence in hematology — or blood testing — ability to scale, and advanced technology.
JPMorgan’s best stocks ideas
Every month, the firm publishes a list of its top stock picks, which are compiled by analysts. The majority are geared toward growth and value investment strategies, with two being short-term picks. Except for State Street, one of the near-term picks, all of the stocks included have an overweight rating.
Sunrun, a growth pick, was swapped out for U.S. Bancorp, a near-term pick added in June. He also stated that the inventory balance of the home solar panel company positions it well “in light of potential geopolitical and lingering supply-chain risks.”
The stock is down more than 30% this year, but JPMorgan’s 12-month price target of $86 per share implies a more than 90% gain.
Analyst Vivek Juneja previously stated that he expected U.S. Bancorp to benefit from a rebound in consumer spending because it has more revenue streams tied to debit and credit cards than other banks covered by JPMorgan.
However, he stated in a note issued on Wednesday that card spending data has weakened, particularly in the airline industry. Airlines’ bookings slowed in the latter part of the summer due to concerns about the Covid-19 delta variant, and they are expected to slow even further.
Dell, the near-term pick on the list, is up about 33% for the year as people spend on at-home work spaces amid ongoing uncertainty about office reopenings.
Barclays best picks
The Wall Street firm identified names that have seen the greatest increase in earnings revisions over the course of the quarter and for which Barclays sees further upside to estimates.
“We screened our U.S. equity coverage universe for [full-year 2022] consensus estimates that have been revised higher by at least 10% in the last two months, as well as Barclays 2021 EPS estimates that exceed current consensus,” the firm said in a client note.
Furthermore, the equities all have a market capitalization of more than $1 billion.
Check out Barclays’ list here.
Barclays’ list includes brick-and-mortar retailers such as Dick’s Sporting Goods, Foot Locker, Under Armour, and Ulta Beauty in the midst of a widespread vaccine rollout and economic reopenings.
During the current quarter, the firm increased Dick’s Sporting Goods‘ 2022 earnings estimate by 19% to $10.88, well above consensus estimates of $8.84. Furthermore, it anticipates a 33 percent increase in the sporting goods company’s price target over the next 12 months.
Barclays increased its forecast for Foot Locker’s 2022 results by 12%. The firm now expects the shoe retailer to earn $6.97 per share next year, compared to analysts’ expectations of $6.59 per share. Foot Locker’s 12-month price target is also up 49 percent.
Barclays increased Under Armour’s earnings estimates for the full year 2022 by 27% to 75 cents per share. The company is expected to earn 62 cents per share next year, according to Wall Street.
Under Armour reported fiscal second-quarter profit and sales that exceeded analysts’ expectations last month, as its turnaround efforts took hold and shoppers purchased more of its merchandise at full price.
Based on Barclays’ price target, Under Armour’s stock has a 53 percent upside.
Barclays also increased Ulta Beauty’s earnings forecast for 2022 by 13%. In 2022, the cosmetics retailer is expected to earn $16.71 per share, compared to the consensus of $15.96. The price target set by Barclays for Ulta implies a 29 percent increase in the stock.
Alphabet and Square were also on the list of earnings revisions.
In the last two months, Barclays increased Alphabet’s 2022 earnings estimate by 13% to $132.10. This compares to the Street’s prediction of $129.84 per share. Based on Barclay’s target, Alphabet’s price has a 13% upside.
Barclays also raised its earnings forecast for payments company Square. The Wall Street firm increased its 2022 estimates by 11% to $3.15 per share, exceeding the consensus of $2.28 per share.
MercadoLibre, ThredUp, Viper Energy Partners, and Ovintiv were also named to Barclays’ list.