Bank of America’s equity research desk has singled out a handful of stocks it expects to outperform as markets move into September.
The picks skip any single macro narrative, spanning live entertainment, semiconductor equipment, household products, and luxury apparel.
And each of the three stocks the BofA has named are built on something specific to the company – a mispriced de-rating, a margin story still building, a turnaround gaining traction.
What ties them together isn’t sector or theme, but a shared bet that the market hasn’t yet caught up to a catalyst already in motion.
ASML
Analyst Didier Scemama named ASML stock his top pick within the semiconductor equipment sector, framing its recent weakness as a buy-the-dip opportunity rather than a warning sign.
ASML, more broadly, has been in a sharp uptrend this year, but has still trailed industry peers over the past 12 months – a gap Scemama sees as an unjustified de-rating given the firm’s competitive moat and earnings trajectory.
BofA’s estimates sit above consensus – with a price target of €2,452 built on expectations of best-in-class EPS growth and expanding operating margins.
Capacity constraints and rising competition are real risks, but Scemama still calls the risk-reward setup compelling heading into the back half of the year.
Madison Square Garden Entertainment
Peter Henderson’s case for Madison Square Garden Entertainment stock rests on where the business is headed rather than where it’s already been.
A forward booking calendar that stays full, feeding an operating-leverage story BofA expects will keep widening margins and lifting adjusted operating income.
The near-term numbers already back that up; last quarter’s results were carried by elevated concert volume, richer per-show economics, and a lift tied to the Knicks’ championship playoff run, with sponsorship, signage, and suite revenue adding further support.
Shares of the Knicks’ and Rangers’ parent have soared 45% this year, but Henderson remains fully convinced that they have not hit a ceiling just yet.
Church & Dwight
Anna Lizzul calls Church & Dwight stock one of BofA’s top ideas – built around a management-led turnaround already underway.
The maker of Arm & Hammer baking soda, toothpaste, and personal-care products is recalibrating its portfolio between value and premium price points.
And Lizzul expects innovation across its core power brands, combined with “deliberate” portfolio reshaping, to push gross margins past any level the company has posted before.
That thesis leans on a track record of holding up when consumer spending softens elsewhere – a resilience the Bank of America analyst expects to keep compounding.
Shares are up roughly 21% year-to-date – with further execution on margin targets seen sustaining the outperformance. Note that CHD stock also pays a healthy dividend of 1.21%, which makes it even more attractive as a long-term holding.
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