Investing

BofA Securities Adds 2 Red-Hot Stocks to Buy to Growth 10 Portfolio for Q2

T-Mobile

This company finally has completed a long and arduous pursuit of former rival company Sprint. T-Mobile US Inc. (NASDAQ: TMUS) provides wireless services for branded postpaid, prepaid and wholesale customers in the United States, Puerto Rico and the U.S. Virgin Islands.

The company offers voice, messaging and data services. It also provides wireless devices, including smartphones, wearables, tablets and other mobile communication devices, as well as accessories and wireline services. It offers its services under the T-Mobile, Metro by T-Mobile and Sprint brands.

The combination with Sprint could bring about a seismic shift in the mobile world. T-Mobile and Sprint’s combined assets could jump-start their 5G ambitions, pushing the industry further into the next-generation technology. They’ve also said they’ll lock in consumer prices for at least three years. As part of all the wrangling, Dish Network will become the fourth national carrier, giving consumers a new alternative.

The analysts expect to see 49% EPS growth over the next five years.

BofA Securities has set a $155 price target. The posted consensus target is $159.13, and the last trade for T-Mobile stock on Tuesday hit the tape at $131.43.

Netflix

This Wall Street darling and FANG constituent offers a great entry point after selling off from all-time highs back in January, and it is on the firm’s US 1 list. Netflix Inc. (NASDAQ: NFLX) is the world’s leading internet television network, with more than 120 million members in over 190 countries enjoying more than 125 million hours of TV shows and movies per day, including original series, documentaries and feature films.

Members can watch as much as they want, anytime, anywhere, on nearly any internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments. Netflix is available on virtually any device with an internet connection, including personal computers, tablets, smartphones, smart TVs and game consoles, and it automatically provides the best possible streaming quality based on the available bandwidth.

Many titles, including Netflix original series and films, are available in high-definition with Dolby Digital Plus 5.1 surround sound and some in Ultra HD 4K. It appears Netflix may be cracking down on password sharing. Many on Wall Street view such crackdowns as a tailwind, and Netflix is in a strong position to continue price increases in 2021.

Over the next five years, analysts anticipate 30% EPS growth.

The BofA Securities price target is $680. The lower $622.74 consensus target is well above the most recent close at $544.53.


These are two very timely additions to the BofA Securities Growth 10 stocks and three others that offer growth investors some outstanding earnings growth potential. For those with a longer time horizon, these are all outstanding additions now. However, with earnings right around the bend, it may make sense to buy partial positions and see how the results come in.