With tensions in the Middle East rattling Wall Street to start October trading, Bank of America has its eye on a collection of stocks that could see strong gains in the quarter ahead. Wall Street is coming off of an unusually strong September that saw stocks conclude the month with gains for the first time in five years. September is historically the worst month of the year for equities.
A 50 basis point interest rate cut helped both the S & P 500 and Dow Jones Industrial Average push higher. However, an escalating conflict between Iran and Israel poured cold water on investor sentiment . The Middle East tensions are the latest headwind for jittery markets that are also watching developments with the economy and November election closely.
"From central bank policy shifts to elections, there is no shortage of uncertainty in among equity investors," said BofA strategist Anthony Cassamassino. Against this backdrop, Bank of America picked a handful of stocks that the firm thinks are poised for gains in the fourth quarter due to expected business and market developments. Here's a look at some of the names that made the list.
Coffee giant Starbucks made the BofA list, with shares advancing 1.5% in 2024. The firm's $118 per share price target implies about 21% upside from Tuesday's $97.
43 close. Analyst Sara Senatore said the recent arrival of CEO Brian Niccol is a potential catalyst for Starbucks stock. She expects the former Chipotle chief to turn around Starbucks' North American .
