Five stocks that are must-owns in the second half: Bank of America
Bank of America recently named five stocks that have room to run in the second half, according to analysts. The firm says buy-rated companies such as Apple are compelling and have plenty of upside. The other names include Hinge Health , Roku , Datadog and Jabil. Roku The TV streaming service is firing on all cylinders following a recent advertising partnership announcement with e-commerce giant Amazon. “The combination of Roku’s scale, with nearly half of all TV streaming time in the US occurring on Roku, with Amazon’s breadth of data is powerful,” analyst Brent Navon and team wrote. He raised his price target on the stock to $100 per share from $85. “In our view, Roku has notable scope to keep expanding its top and bottom line and should benefit from several favorable industry trends along with company-specific actions,” Navon said. The firm said Roku has a plethora of streaming growth opportunities, leaving it well positioned in the second half. “We expect this to translate to scaling profitability growth and free cash flow generation,” Navon said. Shares are up 16% in 2025. Hinge Health Shares of the digital physical therapy company have plenty more room to run, according to the bank. Analyst Brad Sills recently initiated coverage of the stock with a buy rating, calling it a “leader in a $18.5 billion digital care category.” He said he sees a slew of positive catalysts ahead with “solid, sustained high teens topline growth near term.” “Expansion to new categories such as fall prevention and women’s pelvic health, and new international geographies offer added sources of incremental growth,” the analyst added. Sills also highlighted the company’s wide array of services and robust customer base. “With the 1) stock trading at a growth adjusted discount, 2) solid runway for growth and 3) expanding margin and FCF conversion, we see solid risk/reward in the shares,” he said. The stock, which debuted on the New York Stock Exchange in late May, is up nearly 18% in June. Datadog The cloud monitoring company is a top pick at the firm in the second half. Shares are down 7% in 2025. Analyst Koji Ikeda recently raised his price target on Datadog to $150 per share from $138. He said he sees upside to consensus. “Its strong execution is reflected in: 1) healthy 20%+ revenue growth; 2) active participation in the AI theme; and 3) strong release pace of new and differentiated products,” the analyst wrote. In addition, Ikeda’s survey checks show that demand remains robust. “This should translate into its strong revenue growth and execution trend continuing,” he said. “We believe it’s solidifying its position as a key vendor for the [artificial intelligence] experiences of the future,” Ikeda added. Roku “The combination of Roku’s scale, with nearly half of all TV streaming time in the US occurring on Roku, with Amazon’s breadth of data is powerful. … In our view, Roku has notable scope to keep expanding its top and bottom line and should benefit from several favorable industry trends along with company-specific actions. … We expect this to translate to scaling profitability growth and free cash flow generation.” Hinge Health “Leader in a $18.5 billion digital care category. … See solid, sustained high teens topline growth near term. … Expansion to new categories such as fall prevention and women’s pelvic health, and new intl. geographies offer added sources of incremental growth. … With the stock trading at a growth adjusted discount, solid runway for growth & expanding margin and FCF conversion, we see solid risk/reward in the shares.” 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.” Datadog “Its strong execution is reflected in: 1) healthy 20%+ revenue growth; 2) active participation in the AI theme; and 3) strong release pace of new and differentiated products. … This should translate into its strong revenue growth and execution trend continuing. … We believe it’s solidifying its position as a key vendor for the AI experiences of the future.” Jabil “Our Buy rating is based on investment positives, including tailwind from secular growth in Automotive (EV), healthcare, industrial (renewables), recovery in semiconductor capital equipment, and growing Cloud business, which outweigh risks from continuing uncertain macro, component shortages and supply-chain challenges, and unfavorable mix that can offset margin improvement.”
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