Bank of America is bullish on several stocks ahead of their third-quarter earnings reports, identifying attractive buying opportunities. The bank recommends DraftKings, AstraZeneca, BWX Technologies, Grocery Outlet Holdings, and Grab, citing strong operational performance, strategic advantages, and favorable risk-reward profiles. Analysts believe these companies are well-positioned for growth, with positive catalysts expected in the near future.
Ahead of third-quarter earnings reports, Bank of America identifies several compelling buying opportunities in the stock market. The financial giant is particularly optimistic about companies such as DraftKings, which it believes are demonstrating exceptional performance, along with other buy-rated stocks including AstraZeneca, BWX Technologies, Grocery Outlet Holdings, and Grab.
Bank of America analyst Ronald Epstein recently expressed a more constructive outlook on **BWX Technologies**, a nuclear component company, following its investor day. The bank forecasts BWX to benefit significantly from the extensive opportunities within the nuclear energy sector, the convergence of energy, economic, and national security interests, and substantial long-term markets in AI and defense fuels. Despite a revised price target from $250 to $200, the stock maintains a 'buy' rating ahead of its early November earnings report. Epstein noted BWXT's improved financial profile and enhanced flexibility compared to its previous investor day. Shares are reportedly down about 17% in 2026.
**DraftKings**, the prominent sports betting firm, recently saw its rating upgraded from 'hold' to 'buy' by Bank of America. Analyst Julie Hoover explained that while the bank had remained cautious due to challenges from prediction markets and estimate risks, several positive catalysts are now emerging. These include prediction markets turning into a 'win-win' scenario, reduced cannibalization risks, stabilizing Street estimates, and an attractive risk-reward profile, especially with the stock having fallen 47% over the past year. Hoover believes this pullback presents a lucrative opportunity. DraftKings is slated to release its quarterly earnings later this month.
**Grocery Outlet Holdings**, a grocery supply company, is projected by Bank of America to experience an 'EPS rebound'. Analyst Robert Ohmes upgraded Grocery Outlet from 'neutral' to 'buy', finding the shares too appealing to overlook. Ohmes cited a more favorable risk-reward outlook driven by a return to attractively priced opportunistic merchandise and the recent launch of e-commerce parity pricing with major delivery services like DoorDash, Uber Eats, and Instacart. Management's execution, particularly the renewed focus on 'op merch' under new leadership in Store Operations, Supply Chain, and Marketing, is expected to be a powerful driver for traffic and basket size. Grocery Outlet's shares have risen 18% this year, with earnings scheduled for October 21.
**Grab Holdings** is anticipated to deliver a strong third quarter despite currency headwinds. Analysts expect stable momentum across both its mobility and delivery segments, even amid a softer macro environment, currency fluctuations, and the impact of higher oil prices.
Similarly, **AstraZeneca** is highlighted for its robust pipeline progression, which Bank of America considers 'best-in-class'. This strong pipeline is expected to enable premium long-term growth, with multiple product launches and Phase III catalysts poised to significantly boost the company's sales growth.
