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BofA Securities Out With Top High-Conviction Stocks to Buy for Q3

Additional Kraft Heinz brands include ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones and Velveeta.

The huge 5% dividend appears safe for now. The $38 BofA Securities price target is higher than the $31.63 consensus target. Kraft Heinz stock closed at $32.00.

L Brands

This retail leader has struggled some, but it could be offering value buyers a great idea. L Brands Inc. (NYSE: LB) operates as a specialty retailer of women’s intimate and other apparel, personal care, and beauty and home fragrance products. The company operates in three segments: Victoria’s Secret, Bath & Body Works and Victoria’s Secret and Bath & Body Works International.

The company’s products include bras and panties, loungewear, athletic attire, shower gels and lotions, aromatherapy, soaps and sanitizers, and body care accessories. The company offers its products under the Victoria’s Secret, PINK, Bath & Body Works, White Barn, C.O. Bigelow and other brand names.

The BofA Securities target price of $25 compares with a $15.60 consensus target. L Brands stock closed at $15.62.

L3Harris Technologies

The result of a recent merger, this is now the sixth-largest defense company. L3Harris Technologies Inc. (NYSE: LHX) is an agile global aerospace and defense technology innovator that engages in the provision of defense and commercial technologies across air, land, sea, space and cyber domains.

Its Integrated Mission Systems segment includes intelligence, surveillance, and reconnaissance; advanced electro optical and infrared; and maritime power and navigation. The Space and Airborne Systems segment comprises space payloads, sensors and full-mission solutions; classified intelligence and cyber defense; avionics; and electronic warfare.

Shareholders receive a 1.41% dividend. The BofA Securities price target is $250. The consensus figure is $240. L3Harris Technologies stock was last seen trading at $174.00.

O’Reilly Automotive

This is a great consumer stock to own, as consumers will want their vehicles in top shape for the summer travel season. O’Reilly Automotive Inc. (NASDAQ: ORLY) is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. The company sells its products to both DIY and professional service provider customers.

Its product line includes new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature control, chassis parts, driveline parts and engine parts; maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products; and accessories, such as floor mats, seat covers and truck accessories.

BofA Securities has a $470 price target. The consensus target is $438.15. O’Reilly Automotive stock closed at $425.84.

Splunk

This remains a top buy on Wall Street and was recently added to the firm’s US 1 list of top stock picks. Splunk Inc. (NASDAQ: SPLK) provides a software platform for collecting, storing, indexing, searching and analyzing machine-generated data, such as log files and configuration files, which are prevalent in every type of IT system, device and application.

Splunk technology is potentially applicable and disruptive in several market segments, including IT operations, security and compliance, and business intelligence. These market segments are collectively worth $28 billion today.

Wall Street analysts agree that the company offers the de facto standard for security information and event management. It also offers orchestration solutions for security operations, a fast emerging category of products.

The BofA Securities $249 target price is well above the $182.22 consensus target. Splunk stock closed at $198.66.

The two stocks ranked as Underperform are Autodesk Inc. (NASDAQ: ADSK) and ON Semiconductor Corp. (NASDAQ: ON). While not suited for all investors, both of these again could be short-sale candidates.