Bank of America says to buy these five non-tech stocks that are well-positioned for the long term | Wilnesh News
Nvidia shares are red hot, but Bank of America thinks there are many other stocks investors should consider. The firm says these companies have significant upside and should be bought immediately. CNBC Pro compiled research from Bank of America to find the stocks that are best positioned. They include: Super Micro Computer, Kroger, Burlington, JPMorgan Chase and TJX Companies. Kroger analyst Robert Ormes said that although grocery prices remain high, Kroger is still firing on all cylinders. “We believe KR’s near- and long-term prospects are supported given rising contributions from other profit sources and KR’s increasing focus on its pharmaceutical business,” he wrote. Additionally, analysts say Kroger has a boom rewards program and a strong digital presence. Ormes said Kroger stores continue to open at a rapid pace, which should lead to further share gains. The company’s shares are up more than 23% this year. Ormes recently raised his price target on the stock from $65 per share to a Wall Street high of $70. Analyst Lorraine Hutchinson said the discount retailer’s Burlington shares are up 16% this year but still have plenty of room to rise. She said Burlington “has tremendous sales and profit recovery opportunities” that are too attractive to ignore. Like Kroger, its stock has surged as new stores continue to open online. “Over the next five years, the company expects to open a net 100 new stores per year, but this is expected to fluctuate from year to year,” she wrote. That in turn should lead to more revenue growth, Hutchinson added. Hutchinson also noted that Burlington has had success in attracting both high-income earners and low-income earners. The analyst noted that in addition to a brand that consumers know and value, the company also has pricing power and a strong supply chain. Hutchinson continued: “We believe Burlington is well-positioned given its turnaround momentum and continued favorable discount retail fundamentals.” JPMorgan analyst Ebrahim Poonawala ) is even more bullish on the banking giant after meeting with JPMorgan CEO Jamie Dimon. Poonawalla said JPMorgan is firing on all cylinders and cited a series of positive catalysts. They include strong growth, a best-in-class balance sheet and “strategic selectivity.” That left the bank “potential for a surprise upside,” he added. Bank of America also said the stock is “defensive” if the economy takes a downturn. The company’s shares have risen 53% in the past 12 months, and Poonawala believes the company has plenty of room to grow. “Among the banks we cover, we believe JPMorgan is best positioned both in terms of balance sheet and execution given its ability to leverage its competitive advantages,” he said. Super Micro Computer “In the growing field of artificial intelligence servers Well-positioned in the market…. We expect SMCI to continue to achieve strong revenue growth given the demand for servers from applications such as artificial intelligence (AI), high-performance computing (HPC), big data analytics, engineering, etc./Technology workloads, streaming and content delivery, and compute-intensive graphics and online gaming.” JPMorgan Chase “Posed for superior growth. Our meeting with JPMorgan Chase Chairman and CEO Jamie Dimon highlighted a significant balance sheet and strategic selectivity, which not only protects against worse-than-expected macro outcomes but also the potential for upside surprises.” … Among the banks we cover, we believe JPMorgan has the best balance sheet and execution optimal position because of its ability to leverage its competitive advantages. “Kroger We believe KR’s near- and long-term outlook is supported given rising contributions from other profit sources and KR’s increasing focus on pharmaceuticals. … We reiterate “Buy & see KR” well-positioned in 2024 as We think shoppers will continue to favor value and variety as consumers are still adjusting to grocery prices that are up 25% compared to pre-pandemic levels. We see further support for KR’s market share trends from strong digital execution and its fuel rewards/loyalty program. TJX Companies “is well-positioned for continued share gains. … We maintain a Buy rating as we further believe the company can secure substantial deals for premium branded products while delivering value, putting it well-positioned to continue gaining share.” Given the retail disruption (bankruptcy), TJX has become increasingly important to suppliers, and its rich assortment has attracted more suppliers to place products in TJX stores.” Burlington “We reiterate our Buy rating as we believe BURL has Huge sales and profit recovery opportunity. …. Over the next 5 years, the company expects to open 100 net new stores per year, but volatility is expected from year to year. … We believe that given its turnaround momentum and Continued favorable discount retail fundamentals put Burlington in a leading position.”
