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5 BofA Securities Large-Cap Defensive Portfolio Stocks to Buy Before Earnings

Extra Space Storage

This top real estate investment trust (REIT) has very solid upside potential for investors and is on the Jefferies Franchise List of top stock picks. 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 fourth quarter of 2020, the company owned or operated 1,971 self-storage stores in 40 states, the District of Columbia and Puerto Rico. The portfolio consists of approximately 149.2 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 country.

Unitholders receive a 2.80% distribution. The $152 BofA Securities price target is well above the consensus target of $140.33. Extra Space Storage stock closed at $142.61 a share.

NextEra Energy

With a very strong balance sheet, this company looks poised for a solid finish to the rest of 2021. NextEra Energy Inc. (NYSE: NEE) consists of two main business segments: the Florida Power & Light (FPL) regulated utility, and NextEra Energy Resources, a deregulated generator of predominantly wind, natural gas, nuclear and solar powered assets in North America. The company also holds a 65.1% share in the yieldco NextEra Energy Partners.

FPL announced last summer a groundbreaking “30-by-30” plan to install more than 30 million solar panels by 2030 and make the state of Florida a world leader in the production of solar energy. It and NextEra Energy Resources are already the world’s largest producers of renewable energy from the wind and sun. When this plan is completed, FPL expects to be the largest utility owner and operator of solar in America.

Investors receive a 1.90% dividend. BofA Securities has set a $93 price objective. The consensus figure is $87.50, and NextEra Energy stock closed at $80.94 on Friday.

Visa

This top credit card issuer is becoming a huge leader in digital pay. Visa Inc. (NYSE: V) operates the world’s largest retail electronic payments network. The company provides processing services and payment product platforms, including consumer credit, debit, prepaid and commercial payments, that are offered under Visa and related brands.

According to Nielsen estimates, the company is the largest global credit network (as measured by volume) and the second-largest global debit network. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products.

Shareholders receive a 0.57% dividend. BofA Securities has a $234 price target. The consensus target is $244.90, and Visa stock ended the week at $226.41.


These five stocks make sense for investors looking to stay in the game but concerned about the lofty multiples across the stock market. These companies should benefit from economic growth through 2021, but they offer a better risk profile than expensive, high-flying momentum stocks.