The stock market has been on a rollercoaster ride, with some of the largest US companies reporting their fourth-quarter earnings. Investors are looking for the best stocks to invest in, and Bank of America US Equity Strategist Jill Carey Hall has a suggestion: focus on high-quality companies.
Hall believes that quality stocks are the best way to go during periods of transition from an expansion to a downturn. She suggests looking for companies with improving operating margins and pricing power. To help investors find the best stocks, Hall and her team have identified a group of “Buy”-rated companies that are likely to report better-than-expected earnings.
These companies have already reported better-than-expected earnings and sales last quarter, and Bank of America expects them to do the same this quarter. The list of companies is organized based on when they are expected to report their results for the last fiscal quarter.
Investing in high-quality stocks is a smart move right now, and Bank of America’s list of “Buy”-rated companies is a great place to start. With this list, investors can be sure that they are investing in companies that have a combination of consistently good earnings and a healthy balance sheet.