Please try another search
© Reuters
The economic downturn appears to be ending and a recovery is on the horizon, according to Bank of America. The bank's head of US equity and quantitative strategy, Savita Subramanian, has identified 50 stocks best positioned to profit from this anticipated rebound.
For months, Wall Street has been concerned that restrictive monetary policy might lead to a recession and market downturn. However, Bank of America analysts now believe that the economy has turned a corner and could be on the upswing.
In a recent note to clients, Subramanian wrote that a second consecutive month of improvement in the firm's economic regime indicator points to improving conditions for the US economy. This indicator is comprised of eight key macroeconomic indicators including inflation, GDP forecast, 10-year Treasury yield, ISM PMI, and capacity utilization.
Subramanian noted that cyclical stocks — financials, industrials, and materials — tend to perform well during recovery phases. She has identified specific stocks that have performed well during previous recovery periods after screening for stocks in the top 10% of the S&P 500 based on various investment factors.
Among the 50 stocks highlighted are Alaska Air Group (NYSE:NYSE:ALK), American Airlines (NASDAQ:NASDAQ:AAL), Assurant (NYSE:NYSE:AIZ), Bath & Body Works (NYSE:NYSE:BBWI), and BorgWarner (NYSE:NYSE:BWA). Other notable mentions include Ford Motor Co . (NYSE:NYSE:F), Fox Corp. (NASDAQ:FOXA), MGM Resorts International (NYSE:NYSE:MGM), Southwest Airlines (NYSE:NYSE:LUV), and Warner Bros. Discovery (NASDAQ:NASDAQ:WBD).
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Editor
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.