Bank of America has assembled a list of top stock picks for the first quarter, including Citigroup (C) - Get Citigroup Inc. Report, ViacomCBS (VIAB) - Get Viacom Inc. Class B Report, Carrier Global (CARR) - Get Carrier Global Corp. Report, Crowdstrike (CRWD) - Get CrowdStrike Holdings, Inc. Class A Report, and Occidental Petroleum (OXY) - Get Occidental Petroleum Corporation Report.
“Perhaps the most consensus macro view at the moment is that volatility will be elevated in the current quarter and for the year ahead, Anthony Cassamassino, a BofA equity strategist wrote in a commentary cited by CNBC.
“While volatility creates potential opportunities it also necessitates a more selective approach to stock picking,” He and his colleagues chose stocks with strong free cash flow and dividend yields they see withstanding inflation.
The other stocks are Rexrod Industrial Realty (REXR) - Get Rexford Industrial Realty, Inc. Report, CNH Industrial (CNHI) - Get CNH Industrial NV Report, Lamb Weston (LW) - Get Lamb Weston Holdings, Inc. Report, and Xcel Energy (XEL) - Get Xcel Energy Inc. Report.
Looking at Citi, “for a stock trading well below [tangible book value], with a couple of attractive businesses (corporate investment bank, transaction services), we see the risk/reward as compelling,” said BofA analyst Ebrahim Poonawala, according to CNBC.
The stock closed Monday at $76.03, up 1%, and he has a price target of $100.
As for heating and cooling company Carrier, it should gain from increased concern about air quality in light of the Covid pandemic, BofA said.
The stock closed at $52.53, down 3% Monday. BofA has a price target of $70.
Cloud platform CrowdStrike is making hay in the cybersecurity market, said BofA analyst Tal Liani. “The company continues to deliver better-than-expected results, which are driven by continued legacy displacements, zero-trust adoption, and migration to cloud,” he said, according to CNBC.
CrowdStrike closed Monday at $198.33, down 3%. Liani has a price target of $315.