Bank of America named a number of stocks with room for upside following its quarterly results. The company said companies like Apple will be firing on all cylinders for the remainder of 2026. Other stocks rated Buy by Bank of America and recently highlighted include Baker Hughes, Caterpillar, Evercore and Disney. Shares of machinery and agriculture giant Caterpillar have risen more than 175% in the past 12 months, but Bank of America said investors should continue to buy the stock. Analyst Michael Feniger said Caterpillar is in a “sweet spot” with many levers to pull. He recently wrote, “Today’s CAT story is about ‘growth.’ Over time, rising mix (of earnings per share) coupled with resilient and high-margin service could support the development of a more stable EPS profile.” Feniger also raised his price target to $989 per share from $930. “The increased production capacity at CAT will clearly be a revenue driver, i.e. increased production of OE (original equipment) units,” he added. The analyst said the company is not even “firing on all cylinders” yet, but there is room for further upside. Baker Hughes Oilfield Services Co. is also poised for further gains, Bank of America said. Analyst Saurabh Pant said, “BKR’s unique position at the intersection of energy and industrial markets continues to drive differentiated financial performance.” The company said that despite headwinds from the Iran war, its recent financial results show Baker Hughes has what it takes to persevere. “This shows that BKR’s diversified business mix + stable aftermarket & strong execution + margin focus can offset short-term surprises and maintain medium- to long-term growth prospects,” the analyst said. Baker Hughes’ stock price has increased 76% in the past 12 months. Apple Bank of America said Apple remains an aggressive buy. Analyst Wamsi Mohan cited a number of positive catalysts in a recent note to clients. Those include higher gross margins, a new foldable iPhone, a new CEO, and improved iPhone revenue. John Tarnas will succeed Tim Cook as the helm of Apple. Mohan said he was particularly impressed with the company’s latest quarterly report. “Despite some impact from memory price headwinds, Apple’s GM (gross margin) was 49.3%, stronger than expected due to improved services and product mix,” he wrote. Mohan raised his price target to $330 per share from $325, adding that the stock has room for further growth. “I will continue to buy because of the high capital returns, ultimately AI at the edge, and the optionality of new products,” he said. Apple stock has risen 48% in the past 12 months. Evercore: “We believe Evercore is well-positioned to benefit from increased deal activity given its exposure to M&A advisory. Expectations for record M&A in 2026 driven by technology/AI should provide additional opportunities for EPS-positive correction given Evercore’s sector expertise. We view Evercore as falling within the category of boutique investment banks.” Apple: “Many tailwinds in 2026. Gross margin growth is impressive. … Apple’s GM (gross margin) was stronger than expected at 49.3% due to improvements in service and product mix, despite some impact from memory price headwinds. … High return on capital, AI at the edge and optionality of new products ultimately make it a buy.” Caterpillar: “CAT isn’t even ‘running on all cylinders’: P&E margins down YoY 160 bps, RI margin down 700 bps year-over-year, industrial economy still recovering from multi-year slump The Power Theme Broadens CAT’s portfolio is in the ‘sweet spot’. …Today’s CAT talk is about growth. Over time, an increasing mix of EPS coupled with resilient and high-margin services can support the creation of a more stable EPS profile. Baker Hughes: “BKR’s unique position at the intersection of energy and industrial markets continues to drive differentiated financial performance. …This demonstrates that BKR’s diversified business mix, stable aftermarket, strong execution, and margin focus can offset short-term surprises and maintain medium- to long-term growth prospects.”Disney: “The Company is confident that: (1) recent price increases across Disney+/Hulu/ESPN+; (2) We believe DIS stock will outperform its peers as a result of changes in the profitability of its DTC business, (3) improving theme park/cruise trends with several levers for future growth, (4) strong advertiser demand for Disney+’s ad-supported tier, and (5) a multi-year sports driver.”
