Bank of America recently named five stocks that it says should be in every portfolio. The bank says investors should buy companies like Live Nation that are best positioned to deliver shareholder returns. Other buy-rated stocks reviewed by CNBC Pro include Waystar, Barclays, Medline, and Evercore. Capital markets momentum continues for Evercore Investment Bank. Evercore recently reported strong sales and bottom line results in its latest quarterly report, and analyst Ebrahim Poonawalla said the stock remains a top pick for Bank of America. “EVR’s large M&A exposure and increased non-M&A advisory revenue should not only support EPS growth but also provide some EPS protection,” he wrote, referring to M&A and earnings per share. Poonawalla also said Evercore is well-positioned in the initial public offering market. “We count Evercore in a category of boutique investment banks,” he continued. The stock price has increased 11% in the past three months. Live Nation Bank of America says the concert entertainment company is fully committed. Live Nation is well-positioned for growth thanks to strong demand, the team led by analyst Peter Henderson said in a recent note. “As a global leader in live entertainment, we view Live Nation as a multi-year growth story supported by strong company fundamentals and several live entertainment tailwinds,” the report said. The bank acknowledged that the regulatory measures went too far, but said the stock price remained too compelling to ignore. “Live Nation is well-positioned to capture sustained growth in live entertainment demand over the medium to long term, while continued healthy consumer sentiment and spending trends support a solid near-term outlook,” the analysts continued. The stock has increased 16% in the past month. The bank said there is still room to play in the surgical products company’s Medline stock. Analyst Andrew Aubin recently initiated a buy rating on the company’s coverage. “We believe the company can achieve sustainable high-single-digit organic growth due to market share gains and strong mid-surge demand,” he said. Aubin also called Medline “an industry leader in the $175 billion U.S. market.” Bank of America also likes the company’s history of successful mergers and acquisitions and expects more to come. The company’s stock, which went public in mid-December, has risen 13% in the past month. Bank of America was one of four lead underwriters for the IPO. Waystar “Waystar is well-positioned for steady growth, supported by steady end-market demand for revenue cycle management solutions. We believe Waystar has the potential for a changing competitive landscape to foster further growth and opportunities to expand its existing relationships with 18 of the top 22 hospitals.”Medline “Industry leader in the $175 billion U.S. market. We initiate coverage on Medline, Inc. (MDLN) with a Buy rating and a $50 price target, implying a 23% upside potential. We believe the company will achieve sustainable high-single-digit organic growth with market share gains and strong medical surgical demand. We remain well positioned to capture continued growth in live entertainment demand, with continued healthy consumer sentiment and spending trends supporting a strong near-term outlook…As a global leader in live entertainment, we see Live Nation as a multi-year growth story supported by solid company fundamentals and several live entertainment tailwinds…” Evercore: “We believe broader sales of equity will likely be necessary to derail capital market momentum…EVR’s exposure to major M&A Increased non-M&A advisory revenue should not only support EPS growth, but also provide EPS defensibility…We place Evercore as one of the boutique investment banks Barclays: “Given the structural hedge role on the (net interest income) side and the capital markets income on the non-NII side, Barclays’ valuation remains challenging. Management is also focused on growing the UK business, which we believe could lead to incremental upside.”
