MarketMoodz
BoA Names Five Stocks with Upside Amid Market Uncertainty
Bank of America’s June 27 research briefing singled out five stocks it believes are best positioned for upside during rising rates and market volatility: Williams‑Sonoma, Jabil, Kroger, Celsius Holdings and Victoria’s Secret. The picks lean on valuation cushions, clear earnings visibility and secular growth trends—offering a starting point for investors hunting defensible upside in a choppy market.
Key Takeaways
- BoA highlighted valuation, earnings visibility and secular growth as the core rationale for its five stock picks.
- Kroger (KR) has a $85 target based on a 16x F28E EPS multiple, driven by e‑commerce, in‑house brands and better store execution under CEO Greg Foran.
- Williams‑Sonoma (WSM) is viewed as a high‑quality consumer compounder with strong pricing power and has risen about 34% in 2026.
- Victoria’s Secret (VSCO) is expected to hit a ~10% EBIT margin by F28 through expense leverage and remodeled stores, with shares up roughly 63% in 2026.
- Celsius (CELH) benefits from demand for Alani Nu and Core Celsius and a move into PepsiCo (PEP) distribution, while Jabil (JBL) gains from secular tails in EVs, healthcare and cloud despite macro and supply risks.
People Involved
- Greg ForanKroger CEO
Entities Involved
- Bank of AmericaProvider of the research note identifying the five stocks
- Williams‑Sonoma (WSM)Consumer discretionary retailer cited for pricing power and demographic tailwinds
- Jabil (JBL)Manufacturing/industrial company benefiting from EVs, healthcare, renewables and cloud
- Kroger (KR)Grocery chain highlighted for multi‑channel strategy, e‑commerce and in‑house brands
- Celsius Holdings (CELH)Beverage company supported by Alani Nu/Core Celsius demand and distribution gains
- Victoria's Secret (VSCO)Retailer expected to expand EBIT margin via expense leverage and remodeled stores
- PepsiCo (PEP)Distribution partner referenced in Celsius’s channel expansion
- CNBCSecondary reporter summarizing BoA’s research note
MarketMoodz Analysis
This BoA note gives investors a focused list of names that pair earnings visibility with secular growth—a useful combo in an environment of rising rates and volatility. Kroger’s $85 target (16x F28E EPS) frames the grocery stock as a value play with operational improvement upside, while WSM and VSCO offer consumer‑discretionary exposure with pricing power and margin expansion that can withstand weaker traffic. For allocators, these ideas tilt toward companies that can protect cash flow through pricing, omni‑channel mixes and brand strength.
The selections reflect a classic risk‑off tilt to quality within growth: staples and durable consumer brands that can compound earnings, plus an industrial play in Jabil tied to long‑cycle secular themes like EVs and cloud. History shows that in volatile, higher‑rate regimes investors favor earnings visibility and free‑cash‑flow convertibility—traits BoA highlights here. That said, the note is a broker view; market moves cited (WSM up ~34%, VSCO up ~63%) are 2026 snapshots and not guarantees, and macro shocks or execution missteps could quickly alter the calculus.
What to watch next: confirm BoA’s full note for model assumptions and catalysts, track execution metrics (Kroger’s e‑commerce and private‑label margins, VSCO store comps and EBIT progression, Celsius distribution rollouts), and monitor macro signals—real rates, consumer discretionary spending and supply‑chain dynamics—that would amplify or mute these upside cases.
Source: Original Article