Bank of America says stocks like Apple have plenty of upside after earnings
Bank of America strategists said stocks including Apple still offer significant upside after a stronger-than-expected first-quarter earnings season. With the S&P 500 at fresh records, the bank advised investors to focus on mega-cap names where analysts have been raising their profit estimates rather than chasing the index.
Bank of America's US equity strategists said the strong first-quarter earnings season has left several mega-cap technology names with notable upside. Apple sits near the top of the bank's list, with analysts pointing to faster-than-expected acceleration in services and iPhone revenue.
With the S&P 500 logging back-to-back record closes, BofA is urging clients to take a selective approach rather than ride passive index exposure. The bank is highlighting names whose earnings estimates have been revised higher in recent weeks and whose price-to-earnings multiples remain below historical averages.
Strategists noted the Federal Reserve's path on rate cuts is still uncertain, but mega-caps reporting strong results remain attractive across both defensive and growth-tilted portfolios. They flagged escalating tariff tensions and Iran-driven energy shocks as the main downside risks for the rest of the second quarter.
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