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The broader market will end the year below its current level, but there are plenty of opportunities for tech stocks, according to the global equity team at BofA.
BofA’s U.S. equity call refers to the S&P 500 (SP500) (NYSEARCA: A SPY) by the end of the year at 4,000 with EPS of less than 9% YoY at $200. The bull case is 4,600 and the bear case is for a drop to 3,000.
Strategist Anthony Cassamassino compiled a list of the research team’s top picks.
“The list below represents an informal poll of our senior research analysts and is one of many lists and screens that BofA Research regularly updates to meet a diverse range of investment objectives,” Cassamassino wrote in a note.
Here are the top Energy (XLE) stock picks with analyst commentary covering:
- APA (APA), $62 price target – “Besides commodity price impact, Apache has two organic catalysts that we believe can narrow the valuation gap: improved contract terms in Egypt that may revive exploration activity and success in Suriname, where success seems to be a free option.”
Looking for Alpha’s Quant Rating gives APA a Hold rating with earnings revisions dragging the name down.
- Chart Industries (GTLS), $187 – “Our previous concerns about supply chain challenges in the near term have more or less panned out and we believe any lingering supply chain issues and relative margin softness in 1H22 will be outweighed by structural headwinds induced incremental LNG/liquefaction potential.”
The Quant Rating gives the stock an F with the momentum of greatest concern.
- PG&E (PCG), $19 – “PCG offers one of the highest earnings per share CAGRs of approximately 10% that compensates investors for California’s above-average risk profile.”
Quant Rating has a Buy rating with A+ in momentum.
See the top consumer picks for 2023.