BANK OF AMERICA: Buy these 8 US stocks to make a killing in the next 3 months

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Bank of America Merrill Lynch released a list of short-term stock recommendations to clients on Monday.

“These high conviction ideas are based on our views of potential significant market and business-related catalysts that we think will affect these stocks in the quarter,” the bank said in a note.

Here are the top eight:


Abbott Laboratories (ABT)

Markets Insider

Rationale: Driven by the medical technology company’s recent launch of FreeStyle Libre, a new product for monitoring diabetes, analysts predict 7% revenue growth in the first quarter.

BAML price target: $US70.00

Current price: $US58.38

Year-to-date performance: -1.00%

Data provided by Bank of America Merrill Lynch


Automatic Data Processing (ADP)

Markets Insider

Rationale: ADP is expected to ramp up its sales force productivity. Corporate tax cuts also make the shares of the company – which is expected to use benefits to increase returns to shareholders – an attractive buy, according to analysts.

BAML price target: $US138.00

Current price: $113.02

Year-to-date performance: -2.89%

Data provided by Bank of America Merrill Lynch


Coca-Cola European Partners (CCE)

Markets Insider

Rationale: Cost-saving measures, led by a new marking partnership with The Coca-Cola Co (KO), could send CCE revenue climbing. Read more on CCE here.

BAML price target: $US48.00

Current price: $40.88

Year-to-date performance: +2.87%

Data provided by Bank of America Merrill Lynch


Discovery, Inc. (DI SCA)

Markets Insider

Rationale: Discovery Communications is expected to outperform following its merger last month with Scripps Network Interactive, Inc (SNI), which could allow better advertising yields.

BAML price target: $US30.00

Current price: $21.64

Year-to-date performance: -6.32%

Data provided by Bank of America Merrill Lynch


Dover (DOV)

Markets Insider

Rationale: Dover recently announced it’s breaking off its upstream energy businesses, which are seen as having a limited growth profile, into a separate company. The spin-off could send Dover’s industrial assets climbing.

BAML price target: $US117.00

Current price: $95.59

Year-to-date performance: -6.53%

Data provided by Bank of America Merrill Lynch


Lowe’s Companies, Inc (LOW)

Markets Insider

Rationale: A switch up in company leadership could allow the home improvement retailer to catch up with rivals and outperform, according to analysts.

BAML price target: $US105.00

Current price: $US83.53

Year-to-date performance: -8.42%

Data provided by Bank of America Merrill Lynch


MGM Resorts (MGM)

Markets Insider

Rationale: Analysts say an accelerating top-line and protection from a potential trade war make shares of MGM attractive in the second quarter.

BAML price target: $US39.00

Current price: $US34.07

Year-to-date performance: +1.31%

Data provided by Bank of America Merrill Lynch


Qualcomm (QCOM)

Markets Insider

Rationale: The US chipmaker is expected by analysts to be approved for its purchase of Dutch NXP Semiconductors, which could shift focus to cutting costs. Read more on QCOM here.

BAML price target: $US75.00

Current price: $US53.65

Year-to-date performance: -17.96%

Data provided by Bank of America Merrill Lynch


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