🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Uber, Eli Lilly and 9 other stocks are added to BofA's Top Picks list

Published 05-09-2024, 09:26 pm
© Reuters.
LLY
-
NOC
-
MKC
-
RTX
-
CMG
-
MAA
-
RNR
-
NVR
-
UBER
-
DUOL
-
AHR
-

Investing.com -- Bank of America (NYSE:BAC) updated its "US 1" list of top stock picks, revealing in a note Thursday that it added 11 names in August amidst market volatility.

The adjustments reflect changes in economic conditions, including lower interest rates and expectations for a Federal Reserve rate cut, which have prompted BofA's analysts to reevaluate their stock selections.

"The US 1 Committee made a number of changes to the list in August. It's worth noting that while the Committee believes these new stocks fit with the current investing backdrop, stocks are added to and removed from the US 1 list because of their individual attributes," explained BofA.

Among the new additions are Uber Technologies (NYSE:UBER), Eli Lilly (NYSE:LLY), and Chipotle Mexican Grill (NYSE:CMG) (CMG), all seen as promising investments in a shifting market.

BofA analysts highlighted Uber as "one of the fastest top- and bottom-line growers in the Internet sector," driven by strong traction in its new verticals and expanding market share. They expect Uber to achieve over $10 billion in free cash flow by 2026.

Eli Lilly, a major player in the healthcare sector, was chosen for its strong competitive position in the growing obesity market.

BofA expects the company's expansion into areas like sleep apnea and liver disease to provide continued growth. Despite its higher valuation, the bank believes Lilly's earnings will outpace its peers.

Chipotle's "room to grow" was another draw, with the restaurant chain maintaining the industry's highest margins despite a slowdown in the consumer environment.

Other names on the list include defense contractor Northrop Grumman (NYSE:NOC) and real estate investment trust Mid-America Apartment (NYSE:MAA) Communities (MAA), which BofA believes are well-positioned for the current market environment. American Healthcare REIT (AHR), Duolingo (DUOL), McCormick & Co (NYSE:MKC), NVR Inc . (NYSE:NVR), RenaissanceRe (NYSE:RNR), and RTX Corp (RTX) were the other names added to the list in August.

These stocks were selected based on their individual strengths, reflecting Bank of America's belief that they can thrive despite economic uncertainty.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.