Five stocks to buy ahead of earnings, according to Bank of America
Bank of America named several stocks that it views as best positioned ahead of the release of their latest quarterly financials. The Wall Street investment bank said to buy stocks such as Apple heading into those earnings. Other compelling overweight-rated names screened by CNBC Pro include: Casey’s General Stores , TripAdvisor, Quanta Services and Kodiak Gas. Quanta Services The infrastructure services company is firing on all cylinders ahead of earnings later this month. Analyst Sherif El-Sabbahy recently attended Quanta’s investor day and came away impressed. “The message remains consistent in terms of compounding value: A craft-labor led full solutions provider, taking greater customer wallet share and driving margin via vertical integration and optimization,” he wrote. El-Sabbahy likes the company’s differentiated offerings, with plenty of room for growth. “Quanta has separated from others in the utility services space, becoming the premier solutions provider with a focus on partnering with utilities,” he added. The stock is up 43% this year. Kodiak Gas Services Shares of the natural gas compression services company can appreciate further, according to a team led by analyst James Larkin. Bank of America is especially bullish on Kodiak’s recent purchase of power infrastructure provider Distributed Power Solutions. Larkin says the acquisition gives Kodiak a leg up on two big energy themes, the “natural gas boom spurred on by increasing investment in LNG infrastructure & the second being AI data center buildouts which are increasingly searching for power solutions,” he wrote. The investment bank raised its 12-month price target to $70 per share from $45, citing multiple “strong tailwinds.” Kodiak shares are up 69% this year and the company is scheduled to report earnings in May. Tripadvisor The online travel website was recently upgraded to buy from neutral by analyst Nafeesa Gupta. In particular, Bank of America said it was bullish thanks to activist investor activity stirred by Starboard Value, a hedge fund founded by Jeffrey Smith. “Starboard Value’s growing involvement since taking a 9% stake in July ’25 raises the likelihood that TRIP evaluates transactions across its portfolio at a time when the market, in our view, is undervaluing its faster‑growing segments,” Gupta wrote. Gupta likes TripAdvisor’s wide portfolio, including restaurant platform TheFork and Viator. “Tripadvisor’s upside is driven by Viator and TheFork’s growth and margin expansion, while Hotels & Other continues to decline,” she went on to say. Tripadvisor is scheduled to report earnings in early May and shares are up 7% this month. Read more. Casey’s General Stores “We think CASY’s premium to peers is warranted due to its geographic concentration, efficient logistics program, cost controls, focus on higher margin foodservice and consistent EBITDA growth (+8-10%). While fuel sales represented 61% of its overall FY25 sales, 70% of inside transactions do not include fuel, suggesting that the store itself is a destination.” Apple “Our Buy rating on Apple is based on 1) expected strong iPhone upgrade cycle in F25, F26 driven by the need for latest hardware to enable Gen AI features, 2) higher growth in Services revenue, 3) higher margins from more internally developed silicon, 4) continuing capital returns, 5) AI features that can drive higher institutional ownership, and 6) risk around legal issues being manageable.” TripAdvisor “Starboard Value’s growing involvement since taking a 9% stake in July’25 raises the likelihood that TRIP evaluates transactions across its portfolio at a time when the market, in our view, is undervaluing its faster‑growing segments. … .TRIP’s upside is driven by Viator and TheFork’s growth and margin expansion, while Hotels & Other continues to decline.” Kodiak Gas Services “Strong tailwinds and key advantages drive growth … The recent acquisition of Distributed Power Solutions (DPS), a power infrastructure provider, positions Kodiak squarely at the crossroads of two major themes in energy; the first being the natural gas boom spurred on by increasing investment in LNG infrastructure and the second being AI data center buildouts which are increasingly searching for power solutions.” Quanta Services “The message remains consistent in terms of compounding value: A craft-labor led full solutions provider, taking greater customer wallet share and driving margin via vertical integration and optimization … PWR has separated from others in the utility services space, becoming the premier solutions provider with a focus on partnering with utilities.”
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