11 Top Stock Picks for 2022: BofA Global Research

Slideshow October 14, 2022 at 10:21 AM

Bank of America Global Research on Friday released its 11 stock ideas for 2022 — one stock from each of the 11 Global Industry Classification Standard sectors within the BofA-covered S&P 500 universe.

1. Walt Disney Co. (DIS)

Sector: Communication services
BofA US Equity & Quant Strategy Comments: Reopening exposure (parks/cruise/movies). Neglected by funds (rel. weight 0.54x). High Quality.
Closing price as of 12/16/21: $148.74

(Image: AP Photo/Richard Drew, File)

2. BorgWarner Inc. (BWA)

Sector: Consumer discretionary
BofA US Equity & Quant Strategy Comments: Inflation beneficiary, capex beneficiary, neglected (0.54x). High Quality, strong FCF yield (8%).
Closing price as of 12/16/21: $44.22

(Photographer: Mauricio Palos/Bloomberg)

3. Mondelez International (MDLZ)

Sector: Consumer staples
BofA US Equity & Quant Strategy Comments: High Quality. High ESGMeter. Slightly underweight (0.95x). Positive GDP and interest rate betas.
Closing price as of 12/16/21: $65.69

(Dirk Van De Put, Chairman and CEO of Mondelez International, Photographer: Kyle Grillot/Bloomberg)

4. Exxon Mobil Corp. (XOM)

Sector: Energy
BofA US Equity & Quant Strategy Comments: Neglected (0.27x). Higher oil beta than CVX. Strong 10% FCF yield (2022 consensus). High ESGMeter level.
Closing price as of 12/16/21: $61.37

(Image: Bloomberg)

5. Wells Fargo & Co. (WFC)

Sector: Financials
BofA US Equity & Quant Strategy Comments: High Quality. Value. Positive inflation, GDP, interest rate betas. High ESGMeter level. Likely benefits more from higher rates than other banks.
Closing price as of 12/16/21: $50.24

(Image: Bloomberg)

6. CVS Health Corp. (CVS)

Sector: Health care
BofA US Equity & Quant Strategy Comments: High Quality. Value, medium duration, domestic. High ESGMeter level.
Closing price as of 12/16/21: $101.22

Photo: David Paul Morris/Bloomberg)

7. Eaton Corp. PLC (ETN)

Sector: Industrials
BofA US Equity & Quant Strategy Comments: Positive inflation/GDP/oil betas. Capex/reshoring beneficiary. High Quality. High ESGMeter level. Neglected (0.81x).
Closing price as of 12/16/21: $168.80

(Image: Shutterstock)

8. F5 Inc. (FFIV)

Sector: Information technology
BofA US Equity & Quant Strategy Comments: Neglected (0.60x). High Quality. Positive betas vs. inflation, GDP, interest rates. High ESGMeter level.
Closing price as of 12/16/21: $233.93

(Photographer: Chona Kasinger/Bloomberg)

9. Eastman Chemical Co. (EMN)

Sector: Materials
BofA US Equity & Quant Strategy Comments: Neglected (0.89x). High Quality. Attractive dividend yield (2.6%). High ESGMeter level.
Closing price as of 12/16/21: $120.09

(Mark Costa, Chairman and CEO of Eastman Chemical, Photo: courtesy of Eastman Chemical)

10. Welltower Inc. (WELL)

Sector: Real estate
BofA US Equity & Quant Strategy Comments: Neglected (0.22x). High Quality. Attractive dividend yield (2.9%). High ESGMeter level.
Closing price as of 12/16/21: $83.08

(Image: Shutterstock)

11. NRG Energy Inc. (NRG)

Sector: Utilities
BofA US Equity & Quant Strategy Comments: Positive inflation/GDP betas. Screens well on Alpha Surprise and DDM Alpha models. Neglected (0.60x). Attractive dividend yield (3.3%).
Closing price as of 12/16/21: $39.85

(Image: Adobe Stock)

Michael S. Fischer

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