As the latest quarterly earnings season unfolds, Bank of America has identified a select group of five companies that analysts believe possess significant untapped growth potential and compelling catalysts, often undervalued by prevailing market perceptions. These firms span diverse sectors, ranging from technology and e-commerce to consumer staples, and are highlighted for their robust fundamentals ahead of their second-quarter financial disclosures.
- Bank of America has pinpointed five companies with significant growth potential and compelling catalysts.
- The selected firms include Amazon, Anheuser-Busch InBev, Oddity Tech, Bilibili, and AppLovin.
- These companies are recognized for their attractive valuations and strong underlying fundamentals.
- Their upcoming second-quarter earnings reports are anticipated as key catalysts for stock performance.
- The identified companies represent a diverse portfolio across technology, e-commerce, and consumer staples.
Strategic Selections and Core Rationale
Bank of America’s analysis specifically targets companies exhibiting attractive valuations or pivotal catalysts that could propel stock performance beyond their immediate earnings reports. The recommended stocks—Amazon, Anheuser-Busch InBev, Oddity Tech, Bilibili, and AppLovin—are chosen based on their underlying growth trajectories, which analysts contend are not yet fully reflected in their current share prices.
Oddity Tech (ODD)
The global beauty technology platform, Oddity Tech, is characterized by Bank of America as operating at peak efficiency. Analysts commend its innovative direct-to-consumer (DTC) model, noting its strategic position to capitalize on the increasing consumer preference for online beauty sales. This operational strength, coupled with substantial growth potential, led the bank to raise its price target for Oddity ahead of its August 4 earnings report. The stock has already demonstrated robust performance, recording a 64% increase year-to-date.
Bilibili (BILI)
The Chinese online video platform, Bilibili, maintains a positive outlook from Bank of America analysts following recent investor engagements. Key takeaways from these discussions included the company’s strategic emphasis on high-quality content, the empowering role of artificial intelligence (AI) in content creation and monetization, and a continued focus on long-cycle games. Analysts reiterated a “buy” rating, citing Bilibili’s unique value proposition and significant growth runway, with its mid-August Q2 report anticipated as a further catalyst. The company’s advertising business is also expected to benefit from increased spending on e-commerce campaigns and digital products. Bilibili shares have advanced 28% year-to-date.
Anheuser-Busch InBev (ABI)
Despite potential volume challenges in key markets like China and the United States, Bank of America maintains that brewer Anheuser-Busch InBev still holds significant upside potential. Analysts anticipate continued margin expansion, which is projected to support an organic EBITDA growth of 5.6% for the quarter. A particular focus for the company’s July 31 earnings release and first-half results will be its share repurchase program, reinforcing ABI’s reputation as a reliable compounder within the consumer staples sector. The stock has seen a nearly 40% increase year-to-date.
AppLovin (APP)
For the advertising software technology firm AppLovin, Bank of America identifies it as a top coverage pick. The bank foresees a potential upside to 2026 EBITDA estimates, driven by two factors analysts believe the market is largely underestimating: the ongoing onboarding of its managed services and a projected significant increase in self-service adoption by 2026. These operational tailwinds suggest a stronger future performance than widely recognized by investors.
Amazon (AMZN)
In the case of e-commerce and cloud computing giant Amazon, Bank of America projects solid performance in its retail segment. The growth trajectory of Amazon Web Services (AWS) is identified as a critical driver for the latter half of the year. Analysts believe Amazon’s customer-centric approach and focus on the shopping experience strategically position it to capitalize on global e-commerce expansion and other major structural trends, including cloud computing, online advertising, and connected devices.
Sophia Patel brings deep expertise in portfolio management and risk assessment. With a Master’s in Finance, she writes practical guides and in-depth analyses to help investors build and protect their wealth.