Bank of America analysts have identified several stocks, including Spotify, RB Global, Ralph Lauren, and DoorDash, that are poised for significant upside ahead of their upcoming earnings reports. The investment bank believes these companies are well-positioned to outperform, citing factors such as stable underlying trends, innovative product roadmaps, and favorable market conditions.
Analysts are particularly optimistic about Spotify’s ability to leverage AI and its pricing power, while RB Global is expected to benefit from an improving used equipment market and growth initiatives. Ralph Lauren’s strong sales momentum and potential margin improvements also contribute to its positive outlook.
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As the earnings season approaches, Bank of America analysts are highlighting a selection of stocks that they believe offer significant upside potential. The investment bank's research suggests that investors should consider adding companies like Spotify, Cisco, RB Global, Ralph Lauren, and DoorDash to their portfolios, as these firms are well-positioned to deliver strong quarterly results.
Spotify Technology
Analyst Jessica Reif Ehrlich maintains a favorable outlook on Spotify, with the music streaming giant set to report earnings on August 4th. Ehrlich is confident that Spotify's second-quarter results will demonstrate stable underlying trends across key performance indicators, with reported revenue growth accelerating due to moderating foreign exchange headwinds. Bank of America's positive sentiment was further bolstered following Spotify's investor day in May, where the company showcased an impressive AI product roadmap and ongoing development initiatives. The analyst also cited Spotify's pricing power and upcoming digital strategies as key strengths. Shares of Spotify have already seen a 9% increase in July.
RB Global
RB Global, formerly Ritchie Bros., operates an online marketplace for used vehicles and equipment. Despite its stock being up less than 7% year-to-date, trailing the S&P 500, Bank of America views the company as an attractive investment. Analyst Michael Feniger described RB Global as a "quality compounder," noting that while higher fuel costs may present some headwinds, they are unlikely to derail the long-term growth story. The bank anticipates improved earnings prospects for RB Global starting in 2025, with a stronger used equipment backdrop in 2026 and growth initiatives in the automotive sector beginning to yield results. RB Global is scheduled to report earnings on August 4th.
Ralph Lauren
Ahead of its earnings release on August 4th, Bank of America predicts that Ralph Lauren will continue its "beat and raise" performance. Analyst Kendall Toscano highlighted the apparel company's attractive valuation at current prices, expecting strong sales and average unit retail (AUR) momentum to persist. Toscano also sees potential for margin expansion due to a more favorable tariff environment, dismissing concerns about slowing sales as overblown. The analyst remains optimistic about the Polo parent's profit margin potential.
DoorDash
Bank of America believes that DoorDash's (DASH) 2026 margin outlook provides the company with significant expense flexibility for the current year. Despite year-to-date stock underperformance, the firm sees potential for a positive re-rating in the second half of 2026 as year-over-year margins improve and the market anticipates better product velocity in 2027.
