Bank of America’s recent analysis highlighted Carnival as a stock with promising potential heading into the second half of the year. Despite facing challenges in recent years due to the global pandemic, Carnival managed to surpass expectations with better-than-expected earnings in late June. Analyst Andrew Didora noted that the company’s cruise spend remains healthy, and positive commentary on the pace of 2025 bookings indicates a bright future for the stock. With cost-saving measures in place and a solid balance sheet, Carnival is positioned for further growth and improvement. This optimism is reflected in the analyst’s price target of $24 per share, implying nearly 40% upside potential from the current levels.
Another stock that Bank of America identified as a compelling buy is Block, despite experiencing a 15% decline in 2024. Analyst Jason Kupferberg believes that the current dip in the stock is a buying opportunity, as the company’s fundamentals remain strong. While there have been concerns around US GPV growth and SMB performance, Kupferberg argues that these factors have been overly discounted in the stock price. With attractive valuation metrics and a positive outlook on the company’s prospects, Block presents an appealing investment opportunity for growth-oriented investors.
Palantir Technologies is another stock recommended by Bank of America for investors looking to capitalize on the growing trend of AI adoption. Despite seeing a significant increase in share price this year, analyst Mariana Perez Mora believes that the market is still underestimating the company’s potential. With upcoming catalysts such as possible inclusion in the S&P 500 and expanding business partnerships, Palantir remains an attractive option for investors seeking exposure to the technology sector. Mora’s positive outlook on Palantir’s technicals and future growth prospects make it a solid buy ahead of the company’s earnings report in August.
While Square may have lagged in recent months, Bank of America’s research suggests that the stock is undervalued based on current sell-side estimates for 2024 and 2025. Despite concerns surrounding US GPV growth and SMB performance, the company’s fundamentals remain robust, making it an attractive investment opportunity. With a forward-looking approach to digital payments and financial services, Square is well-positioned to capitalize on evolving consumer trends and market dynamics, presenting long-term growth potential for investors.
Finally, Bank of America’s analysis identified Nvidia as a stock with solid fundamentals and compelling valuation metrics. The company’s focus on AI hardware deployments and next-gen Blackwell AI accelerator systems positions it for continued success in the coming years. While short-term volatility may impact the stock price, Nvidia’s long-term growth prospects are underscored by a multi-year deployment cycle and strong demand from cloud customers. As a leader in the semiconductor industry, Nvidia is well-positioned to capitalize on the increasing demand for AI-driven technologies and solutions.
Bank of America’s selection of top stock picks for the summer highlights a diverse range of companies with strong growth potential and compelling investment theses. From traditional industries like cruises to cutting-edge technology firms, these stocks offer investors the opportunity to capitalize on emerging trends and market opportunities. By conducting thorough research and analysis, investors can position themselves to benefit from the growth and success of these recommended stocks in the months ahead.