BofA Securities is the investment banking and capital markets division of Bank of America, one of the largest financial institutions in the United States. The division provides a comprehensive range of services, including equity and debt underwriting, mergers and acquisitions advisory, sales and trading, research, and capital markets solutions to corporate, institutional, and government clients worldwide. As a major player on Wall Street, Bank of America Securities competes with other bulge-bracket investment banks and maintains a significant market share across various financial services sectors.
One of our readers’ favorite lists is the Growth 10 List, which is a quantitatively generated portfolio of 10 stocks with high expected earnings growth. BofA Global Research analysts select from the most attractive stocks in the S&P 500. Four of the top companies are now outstanding ideas, two of which are in the healthcare sector, which has underperformed this year, and all are rated Buy by Bank of America.
Why do we cover Bank of America stocks?
BofA Securities is one of the top firms on Wall Street, and we have covered the company’s curated stock lists for years. These are the absolute best ideas across several categories, and the firm’s top equity analysts have thoroughly vetted all the stock picks.
Allstate
This insurance giant increased its dividend by 8.7% earlier this year and currently pays a dividend yield of 1.82%. Allstate Corp. (NYSE: ALL) provides property, casualty, and other insurance products in the United States and Canada.
It operates in five segments:
- Allstate Protection
- Run-off Property-Liability
- Protection Services
- Allstate Health and Benefits
- Corporate and other
The company offers private passenger auto, homeowners, personal lines, and commercial insurance products through agents, contact centers, and online, as well as property and casualty insurance. It also provides consumer product protection plans, device and mobile data collection services, and analytic solutions using automotive telematics information, roadside assistance, protection, and insurance products, such as identity protection and restoration through:
- Allstate Protection Plans
- Allstate Dealer Services
- Allstate Roadside
- Arity
- Allstate Identity Protection brands
In addition, the company offers life, accident, critical illness, hospital indemnity, short-term disability, and other health insurance products; self-funded stop-loss and fully insured group health products to employers; Medicare supplement, ancillary products, and short-term medical insurance to individuals through independent agents, owned agencies, benefits brokers, and Allstate exclusive agents; and net investment income, net gains on investments, other revenue, debt service, holding company activities, and certain non-insurance operations.
The company also offers automotive protection, vehicle service contracts, guaranteed asset protection, road hazard tires and wheels, and paintless dent repair protection, as well as roadside assistance, mobility data collection services, and analytical solutions utilizing automotive telematics information. Additionally, it provides identity theft protection and remediation services.
BofA Securities has a huge $286 target price.
Gilead Sciences
Gilead Sciences Inc. (NASDAQ: GILD) is a biotech giant that pays a solid 2.77% dividend and offers outstanding total return potential in 2025 and 2026. This biopharmaceutical company discovers, develops, and commercializes medicines for unmet medical needs in the United States, Europe, and elsewhere.
The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/Eviplera, Stribild, Sunlens, and Atripla products for the treatment of HIV/AIDS. Additionally, it offers Veklury, an intravenous injection for the treatment of COVID-19, as well as Epclusa, Harvoni, Vemlidy, and Viread for the treatment of viral hepatitis.
It also offers Yescarta, Tecartus, and Trodelvy products for oncology treatment; Letairis, an oral formulation for treating pulmonary arterial hypertension; and AmBisome, a liposomal formulation for treating serious invasive fungal infections.
Gilead Sciences has collaboration agreements with:
- Arcus Biosciences
- Merck Sharp & Dohme
- Pionyr Immunotherapeutics
- Tizona Therapeutics
- Galapagos
- Janssen Sciences Ireland Unlimited
- Japan Tobacco
- Dragonfly Therapeutics
- Arcellx
- Everest Medicines
- Merck
- Tentarix Biotherapeutics
- Marengo Therapeutics
- Assembly Biosciences
It also has research collaboration, option, and license agreement with Merus to discover novel dual tumor-associated antigens targeting tri-specific antibodies.
Bank of America has a $140 target price for the shares.
Merck
This healthcare giant is a no-brainer, down over 30% over the past year while paying a solid 3.97% dividend. Merck & Co. Inc. (NYSE: MRK) develops and produces medicines, vaccines, biological therapies, and animal health products. It is not just a healthcare company but a global force in the industry. The company operates through two segments.
The Pharmaceutical segment offers human health pharmaceutical products in:
- Oncology
- Hospital acute care
- Immunology
- Neuroscience
- Virology
- Cardiovascular
- Diabetes
- Vaccine products, such as preventive pediatric, adolescent, and adult vaccines
The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, health management solutions and services, as well as digitally connected identification, traceability, and monitoring products.
Merck serves:
- Drug wholesalers
- Retailers
- Hospitals
- Government agencies
- Managed healthcare providers, such as health maintenance organizations
- Pharmacy benefit managers and other institutions
- Physicians
- Physician distributors
- Veterinarians
- Animal producers
Merck’s growth is a result of its efforts and strategic collaborations. The company works with AstraZeneca, Bayer, Eisai, Ridgeback Biotherapeutics, and Gilead Sciences to jointly develop and commercialize long-acting treatments for HIV, demonstrating a commitment to innovation and growth.
Bank of America has a target price of $98.
TKO Group
While off the radar, this sports and entertainment company could prove to be the top Growth 10 idea with a 0.37% dividend. TKO Group Holdings Inc. (NYSE: TKO) owns properties including Ultimate Fighting Championship (UFC), a mixed martial arts organization; World Wrestling Entertainment (WWE), a sports entertainment outfit; and Professional Bull Riders (PBR), a bull riding organization.
It also services and partners with sports rights holders through IMG, a global sports marketing agency, and On Location, an experiential hospitality.
Its segments include:
- UFC
- WWE
- IMG
The UFC segment reflects the business operations of the UFC, which consist of media rights fees associated with the distribution of its programming content, ticket sales, and site fees related to the business’s global live events, as well as partnerships, marketing, and consumer product licensing agreements for UFC-branded products.
The WWE segment reflects the business operations of WWE.
The IMG segment includes IMG business and On Location. IMG Business is an independent global distributor of sports programming.
Bank of America has set a $210 target price.
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