economy
Stocks including Nvidia and Apple are top picks as market run-up continues, Bank of America says
Bank of America named some of its favorite stocks to buy in June.
TL;DR
- Bank of America's top stock picks for June include Apple, Nvidia, National Vision Holdings, Toll Brothers, Citigroup, and Dollar General.
- Toll Brothers is praised for a 'rare' beat and raise, maintaining healthy margins and robust demand, especially for luxury homes.
- Dollar General and National Vision Holdings are seen as compelling, with Dollar General benefiting from store remodels and delivery partnerships, while National Vision Holdings offers a buy-the-dip opportunity.
- Citigroup is a top pick with significant recent gains and potential for further growth, boosted by a large buyback authorization and proactive AI integration.
- Nvidia's strength is attributed to its leadership in AI silicon, hardware, and software, supported by a strong balance sheet.
- Apple's rating is based on an expected iPhone upgrade cycle driven by Gen AI features, services revenue growth, higher margins from internal silicon, capital returns, and manageable legal risks.
- Analysts noted positive sentiment and execution alignment at Citigroup, as well as strong AI engagement.