Bank of America Highlights Promising Stocks Before Quarterly Reports
Bank of America has identified several stocks poised for success ahead of their upcoming earnings reports. The institution emphasizes that companies such as Meta Platforms have significant growth potential. Other recommended stocks featured by CNBC Pro include Roblox, Wex, Coupang, and Trip.com.
Roblox: A Strong Performer
According to Bank of America, Roblox is performing exceptionally well. Analyst Omar Dessouky anticipates that the company will exceed conservative forecasts in its upcoming earnings report later this month. Though the stock appears to be benefiting from broader market engagement, it remains appealing at current prices. Year-to-date, Roblox shares have surged by 121%. The analyst predicts a sustained growth trajectory in earnings, anticipating mid-20% growth driven by global adoption of Roblox’s Metaverse, which attracts more developers, brands, and merchants.
Meta Platforms: Focus on AI Innovations
Analyst Justin Post is optimistic about Meta Platforms ahead of its earnings announcement. He expects a revenue increase that will bolster returns on AI investments. Post advises investors to pay attention to Meta’s updates on artificial intelligence, particularly in light of recent hiring sprees and potential new deals. Alongside AI, Bank of America notes that Meta shareholders can anticipate other positive developments, such as robust advertisement performance. The company’s stock has appreciated by 26% this year.
Wex: A Turnaround Story
Bank of America has upgraded Wex from neutral to buy. The fuel and fleet payment solutions provider is expected to report positive revenue growth for the first time in four quarters in its upcoming quarterly results. Analyst Mihir Bhatia points out that the stock’s valuation makes it hard to overlook, projecting mid-single-digit revenue growth through 2026-2027, in line with its medium-term guidance. Wex shares have increased by 23% over the last six months and have further upward potential.
Trip.com: Capitalizing on Travel Trends
Trip.com is positioned to benefit significantly from the resurgence of travel within China. As the largest online and call-center travel agency by revenue, it is renowned for its customer service quality. Analysts expect Trip.com to maintain its industry leadership while capitalizing on long-term growth opportunities and investing heavily in user acquisition.
Coupang: Navigating Market Dynamics
Coupang is anticipated to thrive due to its unique consumer experience and synergy with other business ventures, such as restaurant delivery and OTT services. The company is expected to be among the few retailers capable of gaining market share while simultaneously enhancing its return profile. Its earnings are projected to benefit from strong growth and margin improvements in product commerce, alongside the turnaround of its developing offerings.
