TLDR
- Bank of America picked five buy-rated stocks ahead of third-quarter earnings.
- DraftKings may gain from its push into prediction markets.
- BWX Technologies has ties to nuclear energy, AI power demand and defense spending.
- AstraZeneca and Grocery Outlet Holding have growth and earnings recovery catalysts.
- Grab Holdings is expanding in Southeast Asia after record second-quarter results.
Bank of America says investors can still find buying opportunities as companies get ready to report third-quarter results. The bank named five stocks across sports betting, nuclear energy, healthcare, retail and online services.
The list includes DraftKings, BWX Technologies, AstraZeneca, Grocery Outlet Holding and Grab Holdings. Each company faces its own challenges, but the bank sees reasons for their shares to rise in the coming months.
DraftKings, BWX Technologies and AstraZeneca
DraftKings is one of the bank’s most closely watched picks after a steep drop in its share price. Analyst Julie Hoover upgraded the sports betting company from Neutral to Buy and kept a $27 price target.
The shares have fallen about 47% over the past year. Analysts say that has improved the balance between risk and reward. The bank also likes the company’s move into prediction markets, where users trade contracts based on real-world events.
Bank of America estimates prediction markets could bring in about $400 million in fees for DraftKings in 2027. Market-making could add more revenue. Risks include unclear rules, competition and heavy spending.
BWX Technologies is another top pick, tied to demand for nuclear energy and defense technology. Analyst Ronald Epstein kept a Buy rating after the company’s September investor day. He lowered his price target from $250 to $210.
The bank says BWX Technologies could gain from new nuclear projects, national security needs and rising power demand from artificial intelligence. The company recently announced a $189 million contract to make nuclear reactor fuel for the US Navy.
AstraZeneca made the list because of its large drug development pipeline. The company is working on treatments for cancer, heart disease and other conditions. Trial results and possible approvals could move the stock.
The company’s July 2026 update listed 183 development projects. Weak trial results, regulatory problems and competition could still hurt revenue expectations.
Grocery Outlet Holding and Grab Holdings
Grocery Outlet Holding drew new attention after Bank of America upgraded it from Neutral to Buy. Analyst Robert Ohmes raised his price target to $15. He pointed to better operations and a possible earnings recovery.
The discount retailer is improving its products and keeping prices consistent on delivery apps such as DoorDash, Uber Eats and Instacart. Investors want to see whether this lifts customer spending, same-store sales and profit margins.
Grab Holdings rounds out the list. The company offers ride-hailing, food delivery and financial services in Southeast Asia. Each business is a possible source of growth.
Grab reported record second-quarter results in August and raised its full-year outlook. It also announced a $750 million share buyback. Currency swings, fuel costs and competition remain risks.
The bank’s outlook comes as investors face high interest rates and worries about stock valuations. Strong results and solid guidance could help these five companies. Weak numbers could add pressure.
Attention now turns to whether management teams can deliver. BWX Technologies is set to report third-quarter results on November 2, and the other companies will report soon after.
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