10 Of The Best Stocks To Buy Now (2024)

American Homes 4Rent is a single-family residential real estate investment trust and a leading owner and operator of high-quality, single-family home properties for lease. They operate primarily in the U.S. Sun Belt region.

Bank of America analyst Joshua Dennerlein says American Homes 4Rent has unique opportunities compared to other residential REITs due to its internally owned and managed property development platform.

Looking ahead to the second half of 2023 and beyond, Dennerlein says there are several bullish tailwinds that could drive American Homes 4Rent’s share price higher.

“The single-family sector benefits from limited supply, the low availability of existing homes for sale and shifting demographics supporting single family renting,” he says.

In the near-term, Dennerlein is anticipating an impressive second-quarter leasing update from the company in late July.

Bank of America has a “buy” rating and $43 price target for AMH stock.

Bath & Body Works is a popular retail chain specializing in candle and personal care products.

Bank of America analyst Lorraine Hutchinson says Bath & Body Works has generated consistent growth, and the stock trades at an attractive valuation in an environment in which many brick-and-mortar retailers are struggling to compete with Amazon (AMZN).

BBWI has gained market share, she says, in each of its three primary product categories so far in 2023, including fragrance, body and soap.

“We see multiple growth drivers throughout the rest of F23, including consistent launches of new fragrances that drive sales in its best-selling product forms, continued expansion into new product categories (hair, skin, laundry), and outstanding uptake of its loyalty program,” Hutchinson says.

Bank of America has a “buy” rating and $50 price target for BBWI stock.

Datadog provides cloud-based tools for monitoring and analyzing cloud app performance and security, including problem diagnosis and troubleshooting.

Bank of America analyst Koji Ikeda says Datadog’s demand is healthy and its conservative financial guidance has set a low bar for the company to clear in the second half of the year. In addition, he says cloud workload demand growth—driven by artificial intelligence applications—should accelerate in the next several years, which is good news for Datadog.

AI and machine learning technology will generate an unprecedented amount of data that companies will need to analyze and secure.

“On the upcoming 2Q23 earnings call, we look for commentary on stable to increasing demand trends and AI driven workloads, which could lay a visible path to revenue growth acceleration in 2024,” Ikeda says.

Bank of America has a “buy” rating and $110 price target for DDOG stock.

Dexcom develops, manufactures and distributes continuous glucose monitoring systems, which are used for diabetes management.

The Centers for Medicare & Medicaid Services recently expanded its continuous glucose monitoring coverage to people who have type 2 diabetes and use basal insulin. Bank of America analyst Travis Steed estimates the U.S. basal insulin market is only about 10% penetrated, creating a large, long-term growth opportunity for Dexcom.

“We recently conducted a survey with 25 doctors, and several doctors cited a real uptick in interest/adoption post CMS basal coverage,” Steed says.

In addition, Dexcom is planning to market a device targeting people who have type 2 diabetes but do not take insulin, a move Steed says could be a significant growth opportunity. Dexcom is also expanding deeper into international markets.

Bank of America has a “buy” rating and $140 price target for DXCM stock.

Fortive is a diversified industrial company operating in three divisions: Intelligent Operating Solutions, Precision Technologies and Advanced Healthcare Solutions (AHS).

Fortive’s healthcare business accounts for about 22% of the company’s total revenue, and Bank of America analyst Andrew Obin says the outlook for AHS in the second half of the year is encouraging.

“We forecast AHS earnings growth to improve based on prior cost-reduction actions, normalization of China elective procedure volumes, improvements from a new direct sales model in North America, and a modest [foreign exchange] benefit,” Obin says.

In addition, Obin projects Fortive will report double-digit software revenue growth in the second quarter, saying the company’s large backlog of hardware orders also provides a high degree of financial visibility.

Bank of America has a “buy” rating and $87 price target for FTV stock.

Lamb Weston is a leading global producer and distributor of French fries and other frozen potato products.

Bank of America analyst Peter Galbo anticipates Lamb Weston will beat consensus earnings estimates in July and will raise its full year guidance. He also says demand from U.S. quick service restaurants has been solid, and China’s economic reopening will support international sales growth.

“Restaurant demand/traffic (~85% of LW’s sales) remained resilient in March-May, while additional price increases in the foodservice and retail channels went into effect in May,” Galbo says.

The company has maintained impressive pricing power compared to consumer packaged goods peers, Galbo says, and early feedback on the summer 2023 potato crop is encouraging.

Given the company’s capacity expansion plans, Galbo estimates Lamb Weston has a path to $6 in annual earnings per share.

Bank of America has a “buy” rating and $130 price target for LW stock.

Lear is a leading supplier of seating and electric power management systems to the global auto industry.

Bank of America analyst John Murphy says the company’s track record of superior growth, industry-leading margins and impressive cash flow makes Lear one of the best long-term auto supplier stocks.

“Additionally, we view Lear as a well-positioned supplier due to its leverage to industry mega-trends of electrification and connectivity through its E-Systems segment,” Murphy says.

He says auto production volumes are recovering faster than previously expected in the U.S. and Europe, and Lear’s capital distributions will generate additional value for investors. Murphy says customer pricing negotiations and improvements in product sales mix create an opportunity for Lear to improve its margins in the second half of 2023.

Bank of America has a “buy” rating and $170 price target for the company’s stock.

Netflix operates a global subscription-based streaming TV and movie platform that has more than 232 million paid subscribers.

Bank of America analyst Jessica Reif Ehrlich says Netflix has a valuable global brand, a massive monetizable user base and several potential growth drivers ahead in the second half of 2023.

First, Netflix is cracking down on password sharing. Then, the company is launching an ad-supported subscription tier that Ehrlich says could significantly expand Netflix’s total addressable market. Finally, she says the company is reaching an inflection point in free cash flow generation and will continue to gain cord-cutting subscribers over the long haul.

“If we assume slightly over 60% of password borrowers in the U.S. are converted (across extra member, ad tier and basic), we estimate password sharing could represent a $2 billion incremental annualized revenue opportunity,” Ehrlich says.

Bank of America has a “buy” rating and $490 price target for NFLX stock.

Walt Disney is a global media and entertainment conglomerate with a large, diversified business portfolio of theme parks, filmed entertainment, television broadcasting and consumer products.

Disney’s stock has significantly lagged the S&P 500 since November 2021, but Ehrlich says there are several reasons that Disney shares may outperform in the second half of the year.

Disney has recently raised subscription prices for its Disney+, Hulu and ESPN+ platforms, and Ehrlich anticipates strong advertiser demand for the company’s ad-supported Disney+ tier. She says cost discipline in Disney’s direct-to-consumer businesses and elevated summer theme park demand could also help boost Disney’s share price.

“Additionally, Disney is hosting an Analyst Day in September during which we believe they will indicate long term strategic priorities and outlook, updated KPIs, and focus on plans to rejuvenate content,” Ehrlich says.

Bank of America has a “buy” rating and $135 price target for DIS stock.

Wells Fargo is one of the largest U.S. banks. It has more than $1.8 trillion in assets under management.

Bank stocks had a volatile first half of 2023 thanks to a regional banking crisis triggered partly by declining bond prices. However, Wells Fargo and 22 other U.S. banking peers all passed the Fed’s annual financial stress test in June, reassuring investors that the banking sector is stable.

Bank of America analyst Ebrahim Poonawala says Wells Fargo is attractively valued and has one of the best risk-reward profiles among large cap bank stocks.

“A positive outcome in the annual regulatory stress test last week combined with excess capital positioning should allow the bank to return capital while being better positioned to absorb changing regulatory capital requirements,” Poonawala says.

Bank of America has a “buy” rating and $47 price target for WFC stock.

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