As incredible as it may seem, 2021 is down to the final 90 days of the year. Halloween and the other holidays will soon be upon us, and many investors and traders across Wall Street are a touch anxious over what could be a volatile quarter, especially following September, which was the worst month for stocks since 2020. While interest rates should remain close to generational lows, the beginning of the tapering of the $120 billion per month quantitative easing is expected to start in November.
In a new research report, BofA Securities is among the first firms out with their top ideas for the fourth quarter of 2021. They have eight stocks to buy and two that are expected to underperform. At first glance, the long ideas look like outstanding stock picks for growth investors. However, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This company was long considered an industry leader when it was known as Apache, and the stock is perhaps offering one of the best entry points in the sector. APA Corp. (NYSE: APA) explores for and produces oil and gas properties. It has operations in the United States, Egypt and the United Kingdom, as well as has exploration activities offshore Suriname. It also operates gathering, processing and transmission assets in West Texas, as well as holds ownership in four Permian-to-Gulf Coast pipelines.
The company is one of the largest U.S. exploration and production (E&P) companies with 2.3 billion barrels of oil equivalent of proven reserves (63% liquids). It is an explorer, acquirer and exploiter a fiscally conservative company that has grown its reserves and production consistently via acquisitions and organic projects.
Shareholders receive a 1.13% dividend. The BofA Securities price target for APA stock is $40, well above the consensus target of $27.63. The last trade for Monday came in at $22.06 a share.
This is a good play on agriculture in a world with a growing need for food and construction. CNH Industrial N.V. (NYSE: CNHI) is the world’s second-largest farm equipment company, with a primary listing in the United States and secondary one in Milan. It is also a leading producer of construction equipment, trucks and commercial vehicles, and powertrains.
The company designs, produces, markets, sells and finances agricultural and construction equipment, trucks, commercial vehicles and buses worldwide. It also offers specialty vehicles for fire fighting, defense and other uses, as well as engines, transmissions and axles for its vehicles.
The dividend yield is 0.80%. BofA Securities has a $25 price target, while the consensus target for CNH Industrial stock is $18.02. The shares closed at $16.76 on Monday.
East West Bancorp
Shares of this off-the-radar bank have been on fire, and the stock is on the BofA Securities US 1 list. East West Bancorp Inc. (NASDAQ: EWBC) is a $50 billion asset bank. Its wholly owned subsidiary, East West Bank, is focused exclusively on the United States and Greater China markets and operates over 120 locations worldwide, which include California, New York, Georgia, Massachusetts, Texas and Washington. In Greater China, East West’s presence includes full-service branches in Hong Kong and Shanghai and representative offices in Beijing, Shenzhen and Taipei.
East West Bancorp stock investors receive a 1.70% dividend. The $100 BofA Securities price target compares to the $91.09 consensus figure and Monday’s close at $78.89.