Bank of America has identified a list of stocks that are well-positioned for the upcoming earnings season. The suggested stocks include Amazon.com Inc. (NASDAQ:AMZN), Brookdale Senior Living Inc. (NYSE:BKD), Corning Inc. (NYSE:GLW), Vertiv Holdings Co (NYSE:VRT), and Carvana Co. (NYSE:CVNA).
AWS, AI Upside Could Lift Amazon in 2026
Bank of America’s (BofA) analysts have highlighted Amazon as a particularly compelling investment. They believe that Amazon’s valuation reflects uncertainty surrounding the positioning of its Amazon Web Services (AWS) division.
If AWS revenue growth accelerates and the company strengthens its AI capabilities, its valuation could improve in 2026. The firm suggests that Amazon is best positioned for multiple expansions as it increases its use of AI, CNBC reported on Saturday.
BofA Points To Four More Winners
Brookdale Senior Living (NYSE:BKD), a senior housing company, has also been upgraded to a buy rating by the bank. The firm believes that Brookdale is well-positioned to benefit from an aging population in the coming years. The company’s shares have risen by almost 13% this year, and it is set to report earnings in late February.
Carvana (NYSE:CVNA), a used car company, has been identified as best positioned for growth. The firm has praised Carvana’s innovation and its new initiatives, such as acquiring physical auto dealerships. Carvana’s stock is up 6% this year, and its earnings are due in late February.
Corning (NYSE:GLW), has been rated a buy by the bank. The firm believes that the balance between glass supply and demand, along with moderate glass price declines, will support Corning’s growth. The company is set to benefit from a cyclical recovery of carrier spending and a secular benefit from Gen AI in the Optical market.
Brookdale, Carvana and Corning are expected to report results in late February.
Additionally, the firm believes that Vertiv (NYSE:VRT) will benefit from a margin recovery and improved free cash flow generation in the near term. The company’s thermal management products are expected to see increased demand due to the adoption of artificial intelligence in data centers.
AI Demand Powers Q4 Earnings Outlook
These recommendations come at a time when the tech industry is poised for a strong Q4 earnings season. Wedbush’s Dan Ives has predicted that tech giants like Amazon, Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) will deliver impressive earnings, driven by significant demand for their AI enterprise services.
Bank of America’s recommendations also shed light on the broader market trends. The upgrade of Brookdale Senior Living, for example, comes amid a challenging landscape for healthcare providers, with ongoing regulatory shifts and financial constraints. Despite these challenges, Bank of America sees strong potential for growth in the senior housing sector, driven by demographic changes.
Similarly, the recommendations for Corning and Vertiv reflect the ongoing shifts in the digital infrastructure and materials science sectors. In Q3, Corning posted strong results with core sales up 14% year over year, led by Optical Communications, where enterprise sales surged 58%, fueled by strong demand for Corning's new GenAI products.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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