Bank of America is signaling a bullish outlook for the market, encouraging investors to consider strategic investments in the wake of a market rebound. After a decline from August to October, November has proven to be a lucrative period, with the S&P 500 surging by 7% and the Nasdaq experiencing even stronger growth at approximately 10%.
Chief Investment Strategist Michael Hartnett from Bank of America remains optimistic about the near-term outlook despite concerns over rising Treasury yields and the Federal Reserve’s stance on interest rates. Hartnett considers current prices to be a favorable entry point and recommends buying in anticipation of a year-end rally, a sentiment echoed by many in the financial sphere.
Bank of America’s stock analysts are actively identifying stocks poised for growth ahead of the predicted rally. Here are details on two picks the investment giant is endorsing:
- Weatherford International (WFRD):
- Sector: Oilfield Services
- Weatherford International, with 80 years in the industry, operates in 75 countries, utilizing advanced digital automation technology in oil patch activities.
- Unique services include RFID technology for well security and a single-trip completion system for offshore wells, emphasizing increased operational efficiency.
- Despite challenges during the COVID shutdowns, Weatherford has rebounded, demonstrating solid financial performance and a stock increase of 94% this year.
- Bank of America analyst Saurabh Pant gives WFRD a Buy rating with a $120 price target, implying a potential 22% upside over the next 12 months.
- Granite Ridge Resources (GRNT):
- Sector: Oil and Gas
- Granite Ridge is a non-operator, focusing on hydrocarbon exploitation in major US basins like Permian, Eagle Ford, Bakken, Haynesville, and DJ.
- The company, relatively new to public markets, entered through a SPAC transaction in October last year.
- Despite a share price decline, Bank of America’s John Abbott sees an attractive entry point, highlighting a current dividend yield of 7% and potential upside.
- Abbott rates GRNT shares a Buy, setting a $9 price target, indicating a robust one-year upside of 50%.
While these stocks present opportunities, it’s essential for investors to conduct thorough research and consider their risk tolerance. The market landscape can be dynamic, and these recommendations are based on current market conditions and forecasts.
