BANK OF AMERICA: Here Are Our 10 Favourite Stocks For 2014

The BofA Merrill Lynch’s equity strategy team is out with a list of its 10 favourite stock picks for 2014.

“We provide a list of 10 S&P 500 stocks for 2014 — one from each of the 10 GICS sectors,” writes BofAML strategist Savita Subramanian in a note to clients. “These stocks align with our themes for the year-ahead 2014 and our quantitative work. This list is intended for the full year, meaning we do not provide updates intra-year.”

Below are the criteria the team used to select the picks:

  1. S&P 500 stocks which are Buy-rated by BofAML fundamental analysts
  2. Review of metrics for favourable valuation, quality, dividend growth or cash deployment, foreign exposure, GDP sensitivity, fund ownership vs. S&P 500 weighting, BofAML vs. consensus EPS expectations, and/or qualifications based on other themes in our Year Ahead outlook, such as the potential for self-help via operational turnarounds, divestitures, etc.
  3. After identifying the stocks consistent with the criteria above, we also considered the views of our fundamental analysts in choosing the stocks for the list.

And here are the picks:

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