Bank of America Stock Picks

Retail investors typically rely on online information to begin selecting their next investments for their portfolios. However, there is a subtle way of aligning new capital to the trends that Wall Street analysts are currently paying attention to. The advantage is that investors do not have to do the hours of in-depth analysis required to reach a conclusion for a stock pick, but rather connect the dots behind recent analyst ratings.

To do this, investors should choose a reputable source, such as a specific analyst or investment bank. So today’s focus is on those three stocks Bank of America Co. NYSE: BAC Analysts decided to upgrade relatively consistently. There must be a broad trend in the background to get them behind these three stocks at the same time.

By successfully connecting the dots and reverse-engineering what these analysts are seeing, investors can tap into a gold mine of other investment ideas for the future. On that note, like stocks Airbnb Inc. NASDAQ: ABNB, Hershey Co. NYSE: HSYAnd also Dollar General Co. NYSE: D.G Today Bank of America landed on the list of recent boosts for analysts.

Inflation themes and property prices boost Airbnb stock’s value proposition

Even after the Federal Reserve’s (Fed) cycle of interest rate hikes, Average property prices In the United States it was still 32% higher than in the pre-Covid period. The market has become so hot that even after an easy and rate-cutting cycle over the last six months, the property market seems out of reach for many consumers.

This is the mortgage market index Still at 1996 lowsThis means that lower yields have not yet had the desired effect on mortgage demand. This bodes well for Airbnb stock because of the flexibility and diversity it offers consumers who are looking to wait out the market.

By renting through “long-term stays” on the platform, consumers can avoid rising rental prices and wait for the market to offer them a better price on the home they want to buy. . This trend is reflected in the company’s key performance indicators (KPIs). As of the previous quarter.

Bookings for nights and experiences have increased by 8% over the last 12 months, further increasing revenue for the platform and demonstrating how attractive the business model is today. This growth helped Airbnb increase its free cash flow for the quarter to $1.4 billion, and it’s only forecast to keep growing.

Knowing this, investors should not be surprised to see Bank of America analysts $159 price target on the stock, up from their previous price of $154. As this new valuation comes as recently as December 2024, investors have the latest opinion of a potential 18.5% upside from where the stock trades today.

Inflationary pressures may help the defensive nature of Hershey stock

Hershey offers affordable products in the consumer staples sector, and this defensive nature has kept price action away from the stock, as there are hot stocks in the market today that demand more attention. However, analysts at Bank of America have decided to express their bullish opinion for the name till December 2024.

With A $180 a share priceThese analysts see a 6% upside from where the stock trades today, which may be on the lower end, given that a potential takeover buyer is on the block that could value Hershey well above $180 a share. trying to buy

The first offer for Hershey stock did not impress management, as it was very cheap. This article Investors will be taken through the takeover offer and where there may be a more acceptable price. In short, it is near the stock’s all-time high of around $275.

Bears know this could be next for Hershey stock, which is why investors can See a decline of 5.7% In the small interest of the company for the last month alone. This is a bearish sign in the face of bullish factors coming into Hershey.

Dollar General stock, a double-digit upside opportunity

Investors can now see a trend here, where in inflation Real estate sector has driven further growth and upside in Airbnb, and how that inflation puts defensive names on the backburner (like Hershey’s stock). This theme extends to the ultimate value proposition for consumers during a high inflation setting.

Dollar General Stock Commands a $95 price target by December 2024 from analysts at Bank of America, which represents a 24.3% upside from its current price. These analysts were not ready to express their only bullish outlook, however, as those at Principal Financial Group recently increased their holdings in the company.

A 2.6% increase through December 2024 brought the group’s position in Dollar General stock to one. $21 million highAnother bullish sign that investors should consider moving forward.

Before you consider Airbnb, you might want to hear this.

MarketBeat keeps track of Wall Street’s top-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified Five stocks That top analysts are quietly telling their clients to buy before the broader market arrives … and Airbnb wasn’t on the list.

While Airbnb currently has a “Hold” rating among analysts, top analysts believe these five stocks are better buys.

Check out five stocks here

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