Further upside is in the cards for a slate of stocks, including Nvidia , according to Bank of America. The firm recently called out big-name stocks that it says are worth snapping up — and that includes the artificial intelligence darling, which has seen its shares more than double in 2024. CNBC Pro combed through Bank of America’s research for buy-rated stocks that are well positioned for additional gains. In addition to Nvidia, these names include Apple, Nextracker , BJ’s Wholesale Club and Ralph Lauren . BJ’s Wholesale Club BJ’s is firing on all cylinders, according to analyst Robert Ohmes. In a recent note, he said that BJ’s has “momentum in membership, traffic, and unit volumes,” even as warehouse competition heats up. In particular, Ohmes highlighted the warehouse company’s digital strategy and noted that BJ’s continuing rollout of its own privately labeled brands is underappreciated by investors. And that’s not all, according to the analyst. “BJ also continues to gain share in its gas business, while profits were below expectations in 1Q,” Ohmes added. The stock is up 32% in 2024, but the analyst said investors should take advantage and buy the dip if shares retreat. “We reiterate our Buy and expect BJ’s to gain share in the current environment as consumers continue to adjust to higher prices, making BJ’s value proposition and price positioning more attractive,” he said. Ralph Lauren “Steady as she goes,” analyst Christopher Nardone wrote recently of the apparel company. Ralph Lauren shares are up nearly 30% this year, but the firm said they have plenty more room to run. The company is coming off of a solid fiscal fourth-quarter earnings report, with a particularly strong showing from its international business, Nardone noted. “We were encouraged by the continued strength in global comps this quarter, particularly in Europe,” he wrote. In addition, confidence in management is robust, the analyst said, while cost savings is a high priority for the company. “We remain Buy rated and continue to view RL as well positioned to outperform given opportunities to further grow margins (beyond expectations) and improving brand heat,” Nardone added. Apple Analyst Wamsi Mohan is standing by the tech giant as a top pick. He said he is very bullish on Apple’s prospects for an AI-enhanced iPhone . “With an installed base of over 4bn smartphones, we see the opportunity for the next upgrade cycle to be once in a decade type of event,” Mohan wrote. In fact, the firm thinks phones with AI capabilities have the potential to get users to switch to AI-enabled devices faster than consumers did to smartphones. “As AI technology evolves the gap between IntelliPhones and traditional smartphones is likely to widen further by offering even more sophisticated and personalized functions driving the desire to upgrade,” Mohan said. Shares of the company are off by about 0.2% in 2024. “Maintain Buy on multi-year upgrade cycle, gross margin upside and secular services growth,” the analyst wrote. Nextracker “Firing on all cylinders. … We reiterate our Buy rating on solar tracking company Nextracker Inc following a strong 4Q print. NXT reported a $4bn record backlog with bookings of +$1bn, reflective of strong underlying demand. In our view, this is more than a palatable entry point for an outsized, idiosyncratic and margin expansion story.” Nvidia “Reiterate Buy, top sector pick on NVDA’s unparalleled combination of: 1) turnkey system design that we think can sustain 80%+ market share in AI accelerator market that could double YoY to ~$100bn in CY24, and can double again to $200bn by CY27 & then $300bn+ by CY30, 2) Incumbency across wide range of customer verticals, & 3) Consistent roadmap execution ensuring smooth transition to next-gen Blackwell product, as well as sustained networking growth.” BJ’s Wholesale Club “Our PO moves to $95, 21-22x our F26E EPS of $4.35 given momentum in membership, traffic, and unit volumes. … BJ also continues to gain share in its gas business, while profits were below expectations in 1Q. … We reiterate our Buy and expect BJ’s to gain share in the current environment as consumers continue to adjust to higher prices, making BJ’s value proposition and price positioning more attractive.” Ralph Lauren “Steady as she goes. … We remain Buy rated and continue to view RL as well positioned to outperform given opportunities to further grow margins (beyond expectations) and improving brand heat. … We were encouraged by the continued strength in global comps this quarter, particularly in Europe. … We maintain our confidence in RL driving outsized margin expansion.” Apple “With an installed base of over 4bn smartphones, we see the opportunity for the next upgrade cycle to be once in a decade type of event. … Maintain Buy on multi-year upgrade cycle, gross margin upside & secular services growth. … As AI technology evolves the gap between IntelliPhones and traditional smartphones is likely to widen further by offering even more sophisticated and personalized functions driving the desire to upgrade.”
