Bank of America strategists have unveiled a new list of 10 short-term stock recommendations among US stocks under their coverage, based on anticipated significant market and business-related catalysts in the upcoming quarter.
For Q3 2024, BofA’s top 10 ideas include nine Buy-rated and one Underperform-rated names, spanning nine different industries.
The stocks rated as Buys are AutoNation (NYSE:AN), Elanco Animal Health (NYSE:ELAN), General Electric (NYSE:GE), Global Payments (NYSE:GPN), Goldman Sachs (GS), Palantir (NYSE:PLTR), Spotify (NYSE:SPOT), Union Pacific (NYSE:UNP), and Vertiv (VRT). The one stock rated as Underperform is CarMax (NYSE:KMX).
Strategists also commented on the broader equity market's direction, noting that whether it will lean towards a correction or sustain its upside remains a topic of debate.
Still, the bank said its recent technical strategy report indicates that when the S&P 500 Index (SPX) rallies in the first six months of the year, it often continues to perform strongly for the rest of the year, especially after a first-half rally of between 10% and 20%.
“According to our strategists, bullish 2H scenarios support SPX 5700-6000,” BofA strategists said.