Bank of America cited a number of stocks it said were too attractive to ignore. The investment bank is bullish on stocks such as Yum China and said investors should take advantage of the weakness. Other stocks it likes with buy ratings include Bath & Body Works, Church & Dwight, Aramark, and Taiwan Semiconductor. Yum China analyst Chen Luo recently said about Yum China: Stay calm and buy the stock now. “Amidst the recent AI vs. everything else dichotomy, we believe this weakness is primarily in flow rather than fundamentals,” he wrote. The company said its checks show an upward trend in same-store sales growth for brands owned by Yum China, including China’s KFC and Pizza Hut. Luo also said the company has wisely resisted merger proposals from suitors, saying it is financially sound with “compelling” risks and rewards. “We believe there are particularly attractive buying opportunities following the decline, and we reiterate our Buy rating.” Stock prices will fall 10% in 2026. Aramark analyst Curtis Nagle said food service and facility management companies are well-positioned to benefit from data centers. “Aramark has established a first-mover advantage with the launch of the Nexus platform, leveraging its extensive experience in remote facility services and the acquisition of the first hyperscaler with combined revenue in the hundreds of millions,” he said. Nexus is the company’s new platform aimed at providing hospitality and employee support services for hyperscale artificial intelligence data centers. Nagle said the opportunity is early, but too attractive to ignore. “We think Aramark’s earnings could improve significantly as it expands its data centers and wins new nexus contracts,” he said. Nagle also raised his price target to $62 per share from $59. “This stock offers a compelling momentum story,” he said. In 2026, the stock price will rise by about 45%. Bath & Body Works analyst Lorraine Hutchinson said the body care fragrance company’s turnaround has been successful. “We believe management is taking the appropriate steps to transform the brand, and we expect multiple expansions as BBWI progresses toward growing sales and stabilizing margins,” he said in a statement following the company’s recent earnings report. The analyst said the company’s strategy, especially with Amazon, appears to be working. “Sales on Amazon are successfully attracting new customers who are willing to pay more for a faster, more convenient experience,” she added. While fuel costs remain a concern, Hutchinson said Bath & Body Works is doing well in combating the issue because of stable profit margins. The stock is down 13% this year. Church & Dwight “We see an attractive risk/reward setup due to 1) long-term volume improvement through consistent market share gains, 2) limited private label risk to our value portfolio, 3) potential for tuck-in M&A, and 4) history of outperformance in economic downturns. We see CHD increasing its 36% focus on value products while continuing to improve its premium portfolio through innovation. ”Taiwan Semiconductor “The continued growth of semi-content in mobile, the rise of artificial intelligence (AI), and the proliferation of the Internet of Things (IoT) should lead to a sustained rise in aggregate global computing power.As a leading contract manufacturer of semiconductor chips, TSMC is well positioned to benefit.We are structurally positive on TSMC. Yum China: “The stock is oversold on flows. The risk-reward at one-year lows is compelling. … Amid the recent polarization in AI vs. everything else, we believe the weakness is primarily due to flows rather than fundamentals. … We believe there are particularly attractive buying opportunities after the decline, and we reiterate our buy rating.” Aramark “Aramark established a first-mover advantage with the launch of the Nexus platform, leveraging extensive experience in remote facility services and the acquisition of the first hyperscaler to reach hundreds of millions in combined revenue…” We believe that building out data centers and winning new Nexus contracts could lead to significant revenue upside for Aramark. …This stock offers a compelling momentum story. ” Bath & Body Works “Early evidence that the new strategy is working. … We believe management is taking the right steps to pivot the brand, and we expect multiple expansions as BBWI progresses in increasing sales and stabilizing margins. … Selling on Amazon has been successful in attracting new customers who are willing to pay more for a faster, more convenient experience.”
