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The broader market will finish the year below its current level, but there are plenty of tech stocks opportunities, according to the global equity team at BofA.
BofA’s U.S. equity call is for the S&P 500 (SP500) (NYSEARCA:SPY) to end the year at 4,000 with EPS down 9% year on year 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 top picks from the research team.
“The list below represents an informal survey of our Senior Research Analysts and is one of but many lists and screens that BofA Research regularly updates to satisfy a diverse spectrum of investment goals,” Cassamassino wrote in a note.
Here are the top Energy (XLE) stock picks with comments from the covering analyst:
APA (APA), price target $62 – “In addition to commodity price leverage, Apache has two organic catalysts that we believe can narrow the valuation gap: improved contract terms in Egypt that can reinvigorate activity and exploration success in Suriname, where success to date appears to be a free option.”
Seeking Alpha’s Quant Rating gives APA a Hold rating with earnings revisions dragging on the name.
Chart Industries (GTLS), $187 – “Our prior concerns on near term supply chain challenges has more or less played out and we believe any lingering supply chain issues and relative margin softness in 1H22 would be trumped by the structural tailwinds from incremental LNG/liquefaction potential.”
Quant Rating gives the stock an F with momentum the biggest concern.
PG&E (PCG), $19 – “PCG offers one of the highest EPS CAGRs at approximately 10% that compensates investors for the above-average risk profile of California.”
Quant Rating has a Buy rating with an A+ in momentum.
See the top consumer picks for 2023.