Are you looking to make smart investment decisions and outperform the market in the third quarter? Look no further than Bank of America’s global “Best of Breed” portfolio. This exclusive list features just 26 companies out of over 3,000 in the bank’s coverage universe, and has outperformed the MSCI All Country World Index by an impressive 33.7 percentage points through May of 2024.
One key aspect of the Best of Breed portfolio is its heavy exposure to the tech sector, with a 64% weighting. Additionally, the majority of stocks on the list come from the U.S., making it a prime choice for investors interested in American companies.
Among the standout stocks in Bank of America’s Best of Breed portfolio is Nvidia. This chipmaker has seen incredible growth, with shares surging approximately 159% this year and a staggering 3,053% over the past five years. With a market cap of nearly $3.16 trillion, Nvidia briefly surpassed both Apple and Microsoft to become the world’s largest company by market cap. Analysts at BofA and Morgan Stanley are bullish on Nvidia, citing strong demand and projecting further upside for the stock.
Another noteworthy inclusion in the portfolio is Shopify. Despite a slight dip in share price in 2024, the company has seen a significant increase of over 112% in the past two years. While BofA has a neutral rating on Shopify, Citi is optimistic about its future prospects, adding the stock to its focus list. With revenue growth expected to accelerate and strategic partnerships like the one with Target driving growth, Shopify is poised for success.
Other companies that made the Best of Breed list include Palantir Technologies and NetEase. Both companies have seen positive performance in 2024, with Palantir up around 50.5% and NetEase up 3%.
For more insights on top-performing stocks and investment opportunities, stay tuned to Extreme Investor Network. Our experts provide in-depth analysis and recommendations to help you make informed decisions and achieve financial success in the world of investing.