Stocks purchased before companies such as Broadcom report earnings. | Wilnesh News
Earnings season is just around the corner, and Bank of America has picked out a range of stocks to buy ahead of its quarterly reports. The company said there is no shortage of companies that are priced perfectly and still have room for upside. CNBC Pro compiles top Bank of America research to find stocks with a Buy rating ahead of earnings releases. They include Broadcom, Eletrobras, TSMC, CompoSecure and New Oriental Education Technology Group. Eletrobras analyst Arthur Pereira is buying shares in the Brazilian power company. By 2024, U.S.-traded stocks will fall 16%. Buy. He said he believes fundamentals are improving, which would warrant a re-rating of the stock. Other positive catalysts include “increased electricity prices, higher transmission revenue (and) value-added asset sales,” Pereira wrote. “Reaffirmed as one of the first choices for the next 12 million (months),” he said. The company is scheduled to report earnings in early August. Analyst Vivek Arya said the chipmaker’s Broadcom shares are up 52% this year and still have room to rise. He recently raised his price target on the stock to $2,150 from $2,000 per share. Arya wrote that Broadcom is still in the process of “transforming from a value stock to a growth stock” as artificial intelligence takes hold and the company gains further synergies from its acquisition of VMware. “Growth could double, driven by AI chips and VMware,” he wrote. Broadcom uses silicon chips for data centers, networking and a variety of other applications. Meanwhile, competition from companies like Nvidia remains fierce, but Arya said he supports Broadcom’s “best-in-class management team.” “We believe AVGO’s diversified growth drivers, well-respected management team and unique track record of capital appreciation, dividend growth and above-market dividend yields justify the premium multiple,” he added. Broadcom plans to Earnings will be reported later in the quarter. Analyst Cassie Chan said CompoSecure, the maker of metal credit cards, is “positioned for strong growth.” She and her team initiated a buy rating on the stock earlier this week, noting that CompoSecure’s relationships with card issuers are unparalleled. “It holds about 83% of the market, and we believe it will further dominate the space as metal card issuance soars,” she wrote. Chan also said CompoSecure is an innovator with gold and glass Develop cards as a “status symbol” for wealthy cardholders. Shares are up nearly 40% this year, but Chen said she sees room for further gains. “We believe its enviable competitive position and large addressable market position are well-positioned to achieve double-digit revenue growth, gross margins above 50% and adjusted earnings (EBITDA) above 30%. Long-term growth targets. CompoSecure plans to report earnings in early August. New Oriental Education “We believe the market fully understands that the expected margin contraction in the fifth quarter is only temporary. The focus should be on revenue growth and the pace of expansion, and we expect profit growth in the fifth quarter. and expansion rate will be strong. …EDU is the largest player in the education sector and is one of our top picks among the Chinese consumer base with solid growth prospects driven by industry prosperity. Eletrobras “reaffirms its top pick for the future 12 million shares.” One…We believe that the recent peak of pessimism in the stock may lead to an inflection point due to improving fundamentals: 1) higher power prices, 2) higher transmission revenue, 3) value-added asset sales, the TSMC team said. Earnings forecasts for the 26th are raised by 0.3%/4.9%/3.7% to reflect strong demand for cutting-edge nodes, cloud AI and more favorable ASP prospects…the rise of mobile, artificial intelligence (AI) and the popularity of the Internet of Things (IoT) should. Will lead to sustainable growth in total global computing power. CompoSecure “The market-leading card player is poised to take off. … It holds approximately 83% of the market share, and we believe that as metal card issuance surges, , it will further dominate the segment… …CMPO together with its partners has made metal cards a status symbol, especially among the mass affluent… We believe it has an enviable competitive position and. The large addressable market position is well-positioned to achieve long-term growth goals of double-digit revenue growth, 50%-plus gross margin, and 30%-plus adjusted EBITDA margin.
