Bank of America stocks with upside after earnings
Bank of America named a slew of stocks that have more room to run following quarterly earnings. The firm said companies like Apple are firing on all cylinders heading into the remainder of 2026. Other stocks Bank of America rated buy and highlighted recently include Baker Hughes , Caterpillar, Evercore and Disney. Caterpillar Shares of the machinery and agriculture giant have gained more than 175% in the past 12 months, but Bank of America said investors should keep buying the stock. Analyst Michael Feniger said Caterpillar is in a “sweet spot” with many levers to pull. “Today, CAT’s story is about ‘growth’. Over time, a rising mix of [earnings per share] tied to resilient, high margin services can underpin create a steadier EPS profile,” he wrote recently. Feniger also raised his price target to $989 per share from $930. “CAT increasing capacity is a clear driver to revenue – i.e., higher output of OE [original equipment] units,” he added. The analyst said that the company is “not even ‘firing on all cylinders'” yet, with more upside ahead. Baker Hughes The oilfield services company is also poised for more gains, according to Bank of America. “BKR’s unique position at the intersection of energy/industrial markets continues to drive differentiated financial performance,” analyst Saurabh Pant said. The firm said that while there are headwinds from the Iran war, the company’s recent earnings report shows Baker Hughes has the chops to persevere. “This shows BKR’s diversified business mix + steady aftermarket & strong execution + margin focus can help offset short-term surprises and keep medium/long-term growth outlook intact,” the analyst said. Baker Hughes shares have climbed 76% in the past 12 months. Apple Bank of America said Apple remains a table-pounding buy. Analyst Wamsi Mohan named a host of positive catalysts in a recent note to clients. They include gross margin upside, a new foldable iPhone, a new incoming CEO and improved iPhone revenues. John Ternus is succeeding Tim Cook at the helm of Apple. Mohan said he was particularly impressed by the company’s most recent quarterly report. “Apple’s GMs [gross margin] came in stronger than expected at 49.3% driven by better Services and product mix despite some impact from memory pricing headwinds,” he wrote. Mohan raised his price target to $330 per share from $325, adding that the stock has further runway for growth. “Reiterate Buy on strong capital returns, eventual winner on AI at the edge and optionality from new products,” he said. Shares of Apple have gained 48% in the past 12 months. Evercore “We believe Evercore is well positioned to benefit from a pickup in deal activity given its exposure to M & A advisory. Expectation for record M & A in 2026 driven by tech/AI should provide additional opportunities for positive EPS revisions given Evercore’s sector expertise. We view Evercore in a category of one among the boutique investment banks.” Apple “Many tailwinds in 2026; Gross margin upside impressive. … Apple’s GMs [gross margin] came in stronger than expected at 49.3% driven by better Services and product mix despite some impact from memory pricing headwinds. … Reiterate Buy on strong capital returns, eventual winner on AI at the edge and optionality from new products,” Caterpillar “CAT is not even ‘firing on all cylinders’: P & E margin down 160bps YoY, RI margin down 700bps YoY, and we are only 1 quarter into an industrial economy trying to recover from a multi-year downturn. Power theme broadens: CAT’s portfolio in a ‘sweet spot.’ … Today, CAT’s story is about ‘growth’. Over time, a rising mix of EPS tied to resilient, high margin services can underpin create a steadier EPS profile.” Baker Hughes “BKR’s unique position at the intersection of energy/industrial markets continues to drive differentiated financial performance. … This shows BKR’s diversified business mix + steady aftermarket & strong execution + margin focus can help offset short-term surprises and keep medium/long-term growth outlook intact.” Disney “We believe DIS shares will outperform peers as a result of: (1) recent price increases across Disney+/Hulu/ESPN+, (2) profitability inflection in the DTC business, (3) improving theme park/cruise trends with several levers for future growth, (4) strong advertiser demand for the ad-supported tier on Disney+ (5) multiyear Sports drivers.”
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