BofA Securities Out With 10 Favorite Stock Ideas for Q1 2022

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Investing

With the holidays behind us, all the traders and Wall Street professionals are back at the trading desk. After a spectacular 2021 when we saw a huge 28.68% gain for the S&P 500 and the 22.21% gain for the Nasdaq, many investors are a little worried about the path forward. Given the spike in inflation, the Federal Reserve’s hand has been forced. After years of the lowest interest rates in history, and ongoing stimulus like the massive quantitative easing, the tide could be ready to turn.
Given the potential for volatility this year, it may make sense to take a long look at the best ideas from the top brokerage firms on Wall Street. BofA Securities is among the first out with their top ideas for the first quarter of 2022. The firm has nine stocks to buy and one that is expected to underperform. We focus on the long ideas, and at first glance, they look like outstanding stock picks for growth investors. However, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Citigroup

This top bank has rallied off its lows but looks poised to move higher in 2022. Citigroup Inc. (NYSE: C) is a leading global diversified financial service company that provides consumers, corporations, governments a broad range of financial products and services.
Citigroup offers services such as consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. It operates and does business in more than 160 countries and jurisdictions in North America, Latin America, Asia and elsewhere.

Trading at a still very cheap 8.2 times estimated 2022 earnings, this company looks very reasonable in what remains a volatile stock market and in a sector that has lagged dramatically.

Citigroup stock investors receive a 3.38% dividend. BofA Securities has a $100 price target. The consensus target is just $82.62, and shares closed trading on Tuesday at $63.59.

Carrier Global

This huge corporation might be a big beneficiary of an infrastructure build-out. Carrier Global Corp. (NYSE: CARR) provides heating, ventilating and air conditioning (HVAC), as well as refrigeration, fire, security and building automation technologies, worldwide.

The HVAC segment provides products, controls, services and solutions to meet the heating and cooling needs of residential and commercial customers. Its products include air conditioners, heating systems, controls and aftermarket components, as well as aftermarket repair and maintenance services and building automation solutions.

The Refrigeration segment offers transport refrigeration products and services, including refrigeration and monitoring systems for trucks, trailers, shipping containers, intermodal and rail, as well as commercial refrigeration solutions, such as refrigerated cabinets, freezers, systems and controls.

The Fire & Security segment provides various residential and building systems, including fire, flame, gas, smoke and carbon monoxide detection; portable fire extinguishers; fire suppression systems; intruder alarms; access control systems; video management systems; and electronic controls. Its other fire and security service offerings comprise audit, design, installation and system integration, as well as aftermarket maintenance and repair and monitoring services.

Investors receive a 1.12% dividend. The BofA Securities target price on Carrier Global is $70. The lower $59.47 consensus target is closer to Tuesday’s closing share price of $53.82.