In this piece, we will take a look at Bank of America’s Top 15 Stock Picks for 2023. For more top stocks, head on over to Bank of America’s 5 Stock Picks for 2023.
2023 is turning out to be an interesting year for the stock market. After major technology and growth firms suffered massive losses on the market last year, within a month they have registered surprising gains that have questioned the pessimistic sentiment emanating from several quarters. For instance, while Tesla, Inc. (NASDAQ:TSLA)’s shares were among the worst performers of 2022, year to date, the stock has appreciated by a massive 86%. Yet, Tesla isn’t the only company making waves on the market. Two others, namely Meta Platforms, Inc. (NASDAQ:META) and Spotify Technology S.A. (NYSE:SPOT) lost more than half of their market capitalization last year. But lo and behold, as we settle into 2023, the duo’s shares are up by 47% and 51%, respectively. Quite a turnaround if you ask us, but still a long way to go to retake previous heights.
For the market as a whole, there are two key questions – both tightly related – that are on everyone’s minds. 2022 was marked by the Federal Reserve’s all out approach to battle inflation. This fight, fueled by rising interest rates, generates worries that the economy might head into a recession. So a debate on recession and interest rates continues to rage, and even investment banks have picked their sides. For instance, while The Goldman Sachs Group, Inc. (NYSE:GS) believes that a recession can be avoided, JPMorgan Chase & Co. (NYSE:JPM) is of the opinion that it is possible one will strike the economy later this year. Another optimist among us is President Joe Biden, who in a fresh interview given to PBS NewsHour’s Judy Woodruff, shared that not only does he not see a recession this year, but next year as well. President Biden simply responded to a question asking his thoughts on a recession this year by stating:
No. Or next year. From the moment I got elected, how many of the experts are saying within the next six months is going to be recession?
However, analysts at the Bank of America Corporation (NYSE:BAC) would like to disagree with the President. Not only do they believe that a recession is highly likely this year, but their strategy to deal with the uncertain economic outlook entails investing in bonds for the first half of this year and then switching to equities later on. The financial firm’s sentiment on recession is as follows:
A recession is all but inevitable in the U.S., Euro Area and UK: Expect a mild U.S. recession in the first half of 2023 with a risk that it starts later. Europe likely sees recession this winter [2022] with a shallow recovery thereafter as real incomes and likely overtightening pressure demand.
Yet, since it’s a sell side firm, Bank of America still has its favorite pick of stocks, and out of these, some of the best performing ones in 2023 so far are Chewy, Inc. (NYSE:CHWY), Warner Bros. Discovery, Inc. (NASDAQ:WBD), and Western Digital Corporation (NASDAQ:WDC).
Copyright: dolgachov / 123RF Stock Photo
Our Methodology
We scoured the Internet to find out which stocks are Bank Of America’s favorite picks for 2023. This included consulting SeekingAlpha (1, 2, 3, 4, 5, 6), Insider, and TipRanks. After this, the year to date gains for the stocks was calculated, and the top fifteen were narrowed down for the list.
Bank of America’s 15 Stock Picks for 2023
15. Ameriprise Financial, Inc. (NYSE:AMP)
Year to Date Share Price Growth as of February 8, 2023: 13.53%
Number of Hedge Fund Holders In Q3 2022: 35
Ameriprise Financial, Inc. (NYSE:AMP) is an American financial services company based in Minneapolis, Minnesota. The firm caters to the needs of both individual and institutional clients and provides services such as financial planning, accounts, and investment products.
Ameriprise Financial, Inc. (NYSE:AMP) scored a win recently when BlackRock decided to increase its stake in the company by 6.9% according to an SEC filing made in February 2023. 35 of the 920 hedge funds polled by Insider Monkey had held a stake in the company during Q3 2022.
Ameriprise Financial, Inc. (NYSE:AMP)’s largest investor in our database is Andreas Halvorsen’s Viking Global which owns 1.8 million shares that are worth $454 million.
Along with Warner Bros. Discovery, Inc. (NASDAQ:WBD), Chewy, Inc. (NYSE:CHWY), and Western Digital Corporation (NASDAQ:WDC), Ameriprise Financial, Inc. (NYSE:AMP) is a top performing Bank of America stock pick in 2023.
14. Toll Brothers, Inc. (NYSE:TOL)
Year to Date Share Price Growth as of February 8, 2023: 15.64%
Number of Hedge Fund Holders In Q3 2022: 32
Toll Brothers, Inc. (NYSE:TOL) is a luxury construction company. It makes and sells condos, bedroom suites, communities, and other properties. The company is headquartered in Fort Washington, Pennsylvania.
Toll Brothers, Inc. (NYSE:TOL) announced in February 2023 that it had opened a single family luxury home community in California, which consisted of 43 estate sized homes. Insider Monkey scoured through 920 hedge fund portfolios for last year’s third quarter to discover that 32 owned the company’s shares.
Out of these, Edward Wachenheim’s Greenhaven Associates is Toll Brothers, Inc. (NYSE:TOL)’s largest investor. It owns 5.3 million shares that are worth $267 million.
13. Amazon.com, Inc. (NASDAQ:AMZN)
Year to Date Share Price Growth as of February 8, 2023: 16.58%
Number of Hedge Fund Holders In Q3 2022: 269
Amazon.com, Inc. (NASDAQ:AMZN) is one of the world’s largest electronic commerce retailers, known for its website Amazon. The firm also has cloud computing, satellite internet, and consumer electronics divisions.
Another retail area that Amazon.com, Inc. (NASDAQ:AMZN) has recently started to aggressively target is pharmaceutical. Amazon Pharmacy, launched in 2020, lets consumers buy their medicines online and provide the firm with the necessary prescriptions. By the end of 2022’s September quarter, 269 of the 920 hedge funds polled by Insider Monkey had invested in Amazon.com, Inc. (NASDAQ:AMZN).
Amazon.com, Inc. (NASDAQ:AMZN)’s largest investor in our database is Ken Fisher’s Fisher Asset Management which owns 49.8 million shares that are worth $5.6 billion.
12. Match Group, Inc. (NASDAQ:MTCH)
Year to Date Share Price Growth as of February 8, 2023: 16.73%
Number of Hedge Fund Holders In Q3 2022: 54
Match Group, Inc. (NASDAQ:MTCH) is a software company headquartered in Dallas, Texas. The firm provides several software applications for online dating, with some of the more popular ones being Tinder and OkCupid.
Match Group, Inc. (NASDAQ:MTCH) hasn’t been performing well lately, as the firm’s latest financial results revealed in January 2023 that its flagship application Tinder’s revenue had dropped by 2% in the fourth quarter. 54 of the 920 hedge funds polled by Insider Monkey for the third quarter of last year had bought the firm’s shares.
11. The Mosaic Company (NYSE:MOS)
Year to Date Share Price Growth as of February 8, 2023: 17.31%
Number of Hedge Fund Holders In Q3 2022: 46
The Mosaic Company (NYSE:MOS) is a fertilizer company. The firm makes and sells phosphate based fertilizer and animal feed, alongside operating its own mines to extract the raw materials for its products.
The Mosaic Company (NYSE:MOS) is currently at the center of attention for wanting to mine 18,000 acres of land in Florida, but its workshops held for the project failed to win over residents. Insider Monkey’s 920 hedge fund survey for Q3 2022 revealed that 46 had invested in the company.
The Mosaic Company (NYSE:MOS)’s largest investor is Eric W. Mandelblatt’s Soroban Capital Partners which owns 6.8 shares that are worth $332 million.
10. Fox Corporation (NASDAQ:FOXA)
Year to Date Share Price Growth as of February 8, 2023: 17.41%
Number of Hedge Fund Holders In Q3 2022: 32
Fox Corporation (NASDAQ:FOXA) is a media and entertainment company. The firm owns and operates film production facilities, television channels, and distribution services.
Fox Corporation (NASDAQ:FOXA) was in the news lately after it decided to cancel its merger with News Corporation in January 2023. However, according to the firm’s CEO, the deal falling through does not mean his firm is uninterested in pursuing other deals. 32 of the 920 hedge fund portfolios studied by Insider Monkey in 2022’s third quarter had held a stake in the firm.
Fox Corporation (NASDAQ:FOXA)’s biggest investor is Donald Yacktman’s Yacktman Asset Management which owns 8.6 million shares that are worth $247 million.
9. SpringWorks Therapeutics, Inc. (NASDAQ:SWTX)
Year to Date Share Price Growth as of February 8, 2023: 18.69%
Number of Hedge Fund Holders In Q3 2022: 23
SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) is a biotechnology company based in Stamford, Connecticut. It develops treatments for tumors and genetic mutations.
SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) made progress for its tumor treatments in December 2022 when it submitted a New Drug Application to the FDA. Insider Monkey’s September quarter of 2022 survey covering 920 hedge funds outlined that 23 had invested in the company.
8. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Year to Date Share Price Growth as of February 8, 2023: 19.42%
Number of Hedge Fund Holders In Q3 2022: 45
Chipotle Mexican Grill, Inc. (NYSE:CMG) is a hospitality firm that operates fast food restaurants in the U.S., Canada, U.K., Germany, and France. It is headquartered in Newport Beach, California.
Chipotle Mexican Grill, Inc. (NYSE:CMG)’s fourth quarter of 2022 earnings results revealed in February 2023 saw the firm miss analyst expectations for revenue, earnings, and in store sales. 45 of the 920 hedge funds polled by Insider Monkey in Q3 2022 had invested in the firm.
Bill Ackman’s Pershing Square is Chipotle Mexican Grill, Inc. (NYSE:CMG)’s largest investor with a $1.6 billion stake that comes via 1.1 million shares.
7. Applied Materials, Inc. (NASDAQ:AMAT)
Year to Date Share Price Growth as of February 8, 2023: 19.87%
Number of Hedge Fund Holders In Q3 2022: 67
Applied Materials, Inc. (NASDAQ:AMAT) is a backend semiconductor firm that provides chip manufacturers with different equipment involved in manufacturing and checking chips for quality control.
Applied Materials, Inc. (NASDAQ:AMAT) announced a new chip inspection technology in February 2023, through which it aims to streamline the yield control process in n semiconductor fabrication. Insider Monkey surveyed 920 hedge funds for their holdings in 2022’s third quarter to discover that 67 had bought the firm’s shares.
Applied Materials, Inc. (NASDAQ:AMAT)’s largest shareholder is David Blood and Al Gore’s Generation Investment Management which owns 6.7 million shares that are worth $549 million.
6. PulteGroup, Inc. (NYSE:PHM)
Year to Date Share Price Growth as of February 8, 2023: 20.15%
Number of Hedge Fund Holders In Q3 2022: 29
PulteGroup, Inc. (NYSE:PHM) is a residential construction firm headquartered in Atlanta, Georgia. The firm makes and sells different residential properties such as single family homes, condominiums, and duplexes.
PulteGroup, Inc. (NYSE:PHM) made a heartwarming announcement in February 2023 when it revealed that it had awarded a U.S. Air Force veteran a mortgage free home in Florida. 29 of the 920 hedge funds polled by Insider Monkey had invested in the firm in Q3 2022.
Natixis Global Asset Management’s Harris Associates is PulteGroup, Inc. (NYSE:PHM)’s largest investor with a $223 million stake that comes via 5.9 million shares.
Chewy, Inc. (NYSE:CHWY), PulteGroup, Inc. (NYSE:PHM), Warner Bros. Discovery, Inc. (NASDAQ:WBD), and Western Digital Corporation (NASDAQ:WDC) are some of Bank of America’s top performing 2023 stocks.
Click to continue reading and see Bank of America’s 5 Stock Picks for 2023.
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Disclosure: None. Bank of America’s 15 Stock Picks for 2023 is originally published on Insider Monkey.
