Investing

BofA Securities Top 10 US Stock Ideas for the Rest of 2021

Extra Space Storage

This top real estate investment trust (REIT) has solid total return potential. Extra Space Storage Inc. (NYSE: EXR) is a fully integrated, self-administered and self-managed REIT headquartered in Salt Lake City, Utah. Like many self-storage companies, Extra Space offers rentable storage space offering customers conveniently located and secure storage units across the country, including boat storage, recreational vehicle storage and business storage.

As of the second quarter of 2020, the company owned or operated 1,878 self-storage stores in 40 states, Washington, D.C., and Puerto Rico. The portfolio consists of approximately 145.4 million square feet of rentable space and 1.4 million units, making the company the second-largest owner/operator of self-storage stores and the largest self-storage management company in the United States.

Unitholders receive a 3.07% distribution. The BofA Securities price target is $134, while the consensus target is $109.77. Extra Space Storage stock closed at $117.09 on Tuesday.

Freeport-McMoRan

This remains a compelling value at current trading levels, and it is one of the top picks at BofA Securities in the sector. Freeport-McMoRan Inc. (NYSE: FCX) is the world’s largest publicly traded copper and molybdenum producer, and the eighth largest gold producer. Its key operating and development assets are in Indonesia, North and South America, and Africa.

Highly leveraged toward copper mining, the company could be a big player in a scenario of rebuilding and repairing old and battered projects and would clearly benefit from stronger demand and higher prices for industrial commodities.

The $21 BofA Securities price target compares with an $18.22 consensus price target and the most recent close for  Freeport-McMoRan stock at $17.72.

Jazz Pharmaceuticals

This health care leader was a recent addition to the firm’s US 1 list. Jazz Pharmaceuticals PLC (NASDAQ: JAZZ) is a biopharmaceutical company that identifies, develops and commercializes pharmaceutical products for various medical needs in the United States, Europe and elsewhere.

The company has a portfolio of products and product candidates with a focus in the areas of sleep and hematology/oncology. Its largest products are Xyrem for narcolepsy (excessive daytime sleepiness), followed by Erwinaze for acute lymphoblastic leukemia and Defitelio for veno-occlusive disorder (blockage of blood vessels in liver).

BofA Securities has set a $178 price target. The consensus figure is $169.94, and Tuesday’s closing print for Jazz Pharmaceuticals stock was $149.56.

Medtronic

This medical technology giant is a solid pick for investors looking for a safe position in the health care sector. Medtronic PLC (NYSE: MDT) develops, manufactures, distributes and sells device-based medical therapies to hospitals, physicians, clinicians and patients worldwide.

The company announced earlier this summer that Blackstone’s life sciences division would invest $337 million into the research and development of its diabetes device technologies. Under the terms of the agreement, Medtronic will receive funding for four diabetes programs over the next several years. Medtronic’s engineering, clinical and regulatory teams will conduct the development work for the programs.

Medtronic stock investors receive a 2.21% dividend. The BofA Securities price target is $130, and the consensus price target is $117.17. Shares closed at $105.21 on Tuesday.