Earnings season is beginning and Bank of America has recognized a number of stocks to purchase forward of their quarterly reviews. The agency has highlighted firms which are properly valued and nonetheless have progress potential.
Actions to Consider
CNBC Pro reviewed Bank of America’s analysis and located a number of really helpful stocks. These embody Broadcom, Eletrobras, Taiwan Semiconductor Manufacturing, CompoSecure and New Oriental Education & Technology Group.
Eletrobras: An Opportunity in the Energy Sector
Analyst Arthur Pereira recommends shares of Eletrobras, a Brazilian electrical utility firm. The inventory in the United States has fallen 16% in 2024. Pereira pointed to a “potential inflection point in bearish sentiment” and suggested purchasers to purchase the dip. According to him, fundamentals are bettering, which might enhance the inventory’s worth. Other constructive elements embody “higher energy prices, upward revisions to transmission revenues and asset sales that increase value.” The firm will report its ends in early August.
Broadcom: Leading with Silicon Technology and AI
Broadcom shares are up 52% this yr and nonetheless have extra room to develop, based on analyst Vivek Arya. Arya raised his value goal to $2,150 per share from $2,000. Broadcom is in a “transformation from a value stock to a growth stock,” fueled by synthetic intelligence and the VMware acquisition. “Growth could double on AI silicon and VMware,” Arya wrote. While competitors with Nvidia is intense, Arya is assured in Broadcom’s “world-class management team.” Broadcom is scheduled to report outcomes later this quarter.
CompoSecure: Innovation in Metal Credit Cards
CompoSecure, a maker of metallic bank cards, is “poised for stellar growth,” based on analyst Cassie Chan. Chan and her crew initiated protection of the inventory with a purchase score. They spotlight CompoSecure’s distinctive relationship with card issuers and its 83% market lead. “We believe it will further dominate as metal card issuance increases,” Chan famous. Additionally, CompoSecure is innovating with gold and glass playing cards as “status symbols” for rich clients. The inventory is up almost 40% this yr, however Chan sees extra potential. “Its competitive status and large addressable market position it well to achieve its long-term growth goals,” Chan concluded. CompoSecure will report its ends in early August.
New Oriental Education: Growth in the Education Sector
New Oriental Education is one other key suggestion. The agency believes the anticipated margin contraction in May is non permanent. “The focus should be on revenue growth and expansion, which we expect to be strong,” the agency stated. New Oriental is the largest participant in the schooling sector in China, profiting from the business growth to supply a stable progress outlook.
Taiwan Semiconductor: Boosting Cutting-Edge Technology
Finally, Taiwan Semiconductor additionally stands out. The agency raised its earnings estimates for 2024-2026 as a consequence of elevated demand for edge nodes and cloud AI. “Continued growth in mobile, AI and IoT should result in a sustainable increase in computing power globally,” the agency famous.
