Bank of America recently discussed stocks to watch heading into 2026, especially those that influence trends such as high-end consumers. Wall Street investment banks like to see positive trends in companies like Visa, Penske, Ollie’s, and Goldman Sachs. Penske Automotive Group analyst Alexander Perry resumed reporting on auto retailers earlier this week. The company says it likes that it reaches out to one of its most important demographics: high-end consumers. Penske’s largest segment of business is luxury cars, Perry added. “We believe this is an advantage as it reduces the risk associated with tariff-related price increases and increases growth opportunities in parts and services given the increasing complexity and technology of vehicles,” he wrote. Perry also said Penske is well-positioned for growth because of its penchant for M&A. He continued: “We believe PAG’s selective approach to acquisition targets and low net leverage position will enable it to grow domestically and internationally.” The stock price has increased 9% this year. Goldman Sachs Investment Bank is fully committed to 2026, the firm says. “Recent meetings with CFOs in the Middle East highlighted significant momentum in revenue growth and productivity,” analyst Ebrahim H. Poonawalla wrote. The company also raised its price target to $900 per share from $850, saying the stock still has room to rise. “We view the year-to-date stock price movement to be rooted in fundamentals, given the positive EPS revision cycle due to a pick-up in M&A/IPO activity,” he said. The stock is up 55% this year. read more. Olly analyst Lorraine Hutchinson backed the discount retailer following its results earlier this week. The company raised its price target to $150 per share from $145 and said Ollie’s new locations and accelerating growth will continue to lead the company in overall retail. “Most of the new stores are former Big Lots stores acquired on the open market rather than under bankruptcy leases,” she wrote. Additionally, the company says Ollie’s is well-positioned to engage consumers from all walks of life. “Customer growth was 12%, driven by strong performance among upper-income and younger customers, and responded well to the shift from print advertising to digital and social media marketing,” Hutchinson said. Meanwhile, the stock is up 4% this year. “We believe Ollie’s is well-positioned in the retail industry as well, as we offer less discretionary products at prices 20-70% lower than our peers,” she continued. Visa: “Following recent poor performance, we believe Visa stock has very attractive return potential and have upgraded our rating from Neutral to Buy. We see stablecoins as an opportunity, regulatory and litigation risks as manageable, and Visa as a top-tier company. We believe current valuations are near 10-year lows, driven by overblown disruption concerns and rotation into AI/risk-on stocks.” Nvidia “NVDA remains a generation ahead of its competitors. … Our $275 PO is within 25x to 56x of NVDA’s historic prior year P/E CY27E We believe this is justified by NVDA’s leading share in the rapidly growing AI computing/networking market, offset by the volatility of global AI projects, cyclical gaming markets, and concerns about access to power.” Ollie’s “Most of the new stores are former Big Lots stores acquired on the open market rather than bankruptcy leases. This is due to the strength of its high-income and younger customers, who have responded well to the marketing shift. We see this as an advantage in the retail industry as well, as we offer lower prices,” Penske said. “We see this as an advantage as it reduces the risk associated with tariff-related price increases and increases growth opportunities in parts and services given increased vehicle complexity and technology. … PAG’s selective approach to acquisition targets and low net leverage position both domestically and internationally. Goldman Sachs: “Our recent investor meeting with CFO Dennis Coleman and Middle East Head of Investor Relations Jehan Elahi highlighted strong momentum in earnings growth and productivity. …We view the year-to-date stock price movement to be rooted in fundamentals, given the positive EPS revision cycle due to a pick-up in M&A/IPO activity.”
