Bank of America Identifies Five Promising Stocks Set for Upside
In the shifting landscape of 2025’s stock market, Bank of America (BofA) analysts have spotlighted five companies they believe are poised for substantial gains. From media giants like Disney to innovative tech and consumer brands, these picks reflect diverse sectors with compelling growth stories. Here’s a detailed look at why these stocks are capturing investor attention and why the underlying fundamentals suggest they have more room to run.
AT&T: A Telecom Turnaround with Strategic Fiber Growth
Michael Funk, Bank of America’s lead telecom analyst, recently reinstated coverage on AT&T (T) with a bullish stance. Despite a competitive market, AT&T's combination of wireless and rapidly expanding fiber assets paints a fundamentally sound picture.
“AT&T’s subscription-based model offers stability, and the operational momentum is strong,” Funk explained. Unlike Verizon (VZ), BofA sees AT&T's valuation bearing closer resemblance to the growth-oriented T-Mobile (TMUS). This optimism is rooted in AT&T’s focused capital returns and fiber network expansion, which cater to increasing demand for high-speed internet.
Indeed, AT&T’s stock has appreciated by 19% year-to-date, reflecting market confidence. Funk emphasized the company represents the “best balance of growth and returns” among its telecom peers—an important signal for investors seeking both income and capital appreciation.
BellRing Brands: Endurance in the Nutritional Space
BellRing Brands (BRBR), a rising player in energy drinks and nutrition products, caught the eye of analyst Yasmine Deswandhy. Although shares have slid 23% this year, Deswandhy argues this dip masks the company’s robust sales growth and future runway potential.
She highlights that BellRing operates in a young yet rapidly mainstreaming health food sector where consumer preferences are evolving quickly. “Competition and retailer shake-ups are natural for this category to mature beyond niche status,” Deswandhy notes. Investors looking beyond short-term volatility may find BellRing’s endurance-focused strategy particularly compelling.
Disney: Navigating Recovery with Diverse Revenue Streams
Jessica Reif Ehrlich, covering Disney (DIS), believes the entertainment powerhouse continues to cruise toward profitability and growth. Investor concerns about its Experiences segment—including theme parks and cruise ships—might be overstated according to the analyst's latest observations.
Disney's strategy rests on three pillars for near-term upside:
- Profitability turning points in direct-to-consumer services,
- Reacceleration of Parks and Experiences revenue,
- A strong and diverse upcoming film slate boosting ancillary businesses, including advertising on ESPN.
With shares up nearly 8% this year, Disney demonstrates resilience amid industry challenges while capitalizing on new content and expanding sports media rights.
Primo Brands: Riding the Wave of Healthy Hydration
Water and beverage provider Primo Brands (PRMB) receives a 'Buy' rating supported by favorable consumer trends toward bottled water and wellness-focused products. The analyst team forecasts strong synergy gains from recent acquisitions, which should fuel sustainable EBITDA growth over the coming years.
Primo’s success hinges on rising health awareness and convenience, as hydration becomes a staple of everyday consumer habits rather than an occasional choice.
Oddity Tech: Tech Innovation Driving Rapid Sales Growth
Oddity Tech (ODD) is positioned as a tech disruptor with expectations of over 20% annual sales growth. The company leverages advanced technology to gain share from established players. Its pipeline includes two new brand launches slated for 2025-2026, targeting fresh user bases.
Bank of America is optimistic that high repeat customer rates coupled with innovative offerings will keep fueling Oddity’s upward trajectory.
Contextual Analysis: Why These Picks Matter for Investors
What unites these five stocks is their rootedness in fundamental business strengths and strategic positioning within growth markets. AT&T’s fiber buildout ties into nationwide broadband expansion policies that remain a priority under U.S. infrastructure initiatives. BellRing and Primo tap into the booming health and wellness consumer trend that has persisted through economic cycles.
Disney embodies the broader media industry’s shift toward diversified content delivery and live experiences, while Oddity Tech exemplifies the disruptive tech innovation increasingly favored by younger demographics and digital consumers.
For American investors, these picks not only offer potential upside but also highlight critical sectors impacted by regulatory trends, evolving consumer behaviors, and technological advances that will shape markets in 2025 and beyond.
Editor’s Note
Bank of America’s recent recommendations underscore a blend of stability and growth across sectors facing structural transformations. While the market’s volatility requires careful navigation, these companies illustrate paths toward sustainable expansion.
Key questions remain: How will ongoing inflation and shifting consumer spending impact BellRing and Primo? Can AT&T sustain fiber momentum against ever-intensifying competition? And will Disney’s content strategy continue to drive strong engagement amidst evolving media consumption habits?
Investors and market watchers should monitor these narratives closely as 2025 unfolds and policy environments respond to technological and economic shifts.
