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Bank of America: Stocks Poised for September Surge
29 Aug
Summary
- Tapestry, Madison Square Garden Entertainment, ASML, and Church & Dwight are top stock picks.
- ASML's stock is experiencing an 'unjustified de-rating', according to analysts.
- Church & Dwight is noted for its improved product mix and strong brand growth.
Investment bank Bank of America has identified a selection of stocks poised for considerable upside in September. Among their top recommendations are Tapestry, Madison Square Garden Entertainment, ASML, and Church & Dwight, companies believed to be performing exceptionally well.
Madison Square Garden Entertainment, owner of the New York Knicks and Rangers, is highlighted for strong concert activity and a robust upcoming schedule, which is expected to drive margin expansion. Analysts anticipate significant growth in adjusted operating income for the company.
Church & Dwight, known for Arm & Hammer products, is praised for its strategic turnaround, featuring an improved mix of value and premium offerings. This innovation is anticipated to fuel brand growth and achieve historically high gross margins.
ASML, a key player in semiconductor manufacturing equipment, is recommended for purchase despite recent underperformance. Analysts cite an 'unjustified de-rating' and emphasize the company's best-in-class earnings per share growth supported by margin expansion.
Tapestry is also noted for consistent earnings growth, driven by the Coach brand and stabilization at Kate Spade, with expectations of accelerated capital returns to shareholders.
