Stocks have had an attractive start to the year, and Bank of America analysts think some of the names that are rated buy in their coverage could maintain that momentum through the rest of the year. of 2023. The S&P 500 has gained more than 5% in January, on track to start its best year since 2019. Slowing inflation indicators and China’s reopening are two factors. contributed to the growth of the broader market index at the beginning of the year. Such a strong start could be a promising sign of what’s to come. CFRA chief investment strategist Sam Stovall noted that, after a positive January, the market has continued to rally for the rest of the year more than 85% of the time. At the time, the S&P 500 had posted an average annual gain of about 11.5%, according to data from World War II. Certainly, the question remains how much the Federal Reserve will raise interest rates to combat inflation, which remains well above double the central bank’s target rate of 2%. However, Bank of America asked its analysts to break down their top picks for 2023. According to them, these companies are poised to do well this year. The company said it compiled its list through an “informal survey” of its senior research analysts and spanned a variety of sectors. Take a look at five of Bank of America’s shortlisted stocks: Raytheon Technologies Raytheon Technologies, a combined entity resulting from the merger of Raytheon and United Technologies, was selected based on “substantial breadth and depth ” in the aerospace and defense industries. “The upside risk is that if the recovery in commercial aviation and business jets is better than expected, earnings could be better than we anticipated,” Bank of America noted. “The downside risk to PO is a downturn in the commercial airline industry due to the natural business cycle or an exogenous event such as a terrorist attack or a pandemic.” Bank of America has a price target of $120 per share, implying a roughly 20% gain from Monday’s closing price. Raytheon stock is up 10% over the past 12 months. Still, the stock is down nearly 2% year-to-date. Amazon tech giant Amazon also made the list, with Bank of America noting that it’s “well-positioned to capitalize on the global growth of eCommerce and other secular trends like computing.” cloud, online advertising, and connected devices.” The company has a price target of $135, implying a 34% gain from Monday’s closing price. Amazon stock is up nearly 22% since the start of 2023. However, the stock is down nearly 50% by 2022. AMZN 1Y climbed Amazon in the past year Deckers Footwear retailer and designer Deckers made the list. This book is partly due to its strong brand portfolio, which includes shoe brands Hoka and Ugg. “We believe DECK has significant EPS growth opportunities due to rapidly increasing HOKA brand awareness, modest share growth from UGG, and share buybacks,” wrote analyst Christopher Nardone. Bank of America in November highlighted Hoka as a “jewel” for Deckers, estimating that the running shoe brand’s revenue will grow to $2.2 billion by fiscal 2025. up 5.25% so far in 2023 and a whopping 31.19% in 2023. Last 12 months. Domino’s Pizza The world’s largest pizza delivery company was selected by Bank of America for its promising growth potential. “We believe DPZ will continue to benefit from the fast-growing pizza segment with its large scale, first-mover advantage, and long growth path in the US and internationally,” wrote analyst Sara Senatore. . Domino’s shares have fallen about 22% in the past 12 months due in part to rising costs and a driver shortage. According to Bank of America, luxury sports car maker Ferrari “is a unique asset, with stable financial performance, significant intangible brand value and a position of true luxury”. The company highlights Ferrari’s brand value as an important driver of revenue in addition to car sales. Analyst John Murphy also noted that the automaker’s “balancing strategy of volume growth, price appreciation and new model introductions during our forecast period will drive revenue growth and excess income.” Ferrari shares are up about 13% this year and 14% over the past 12 months. —Michael Bloom of CNBC contributed to this report.