There’s still plenty of stocks to buy ahead of earnings, according to Bank of America. The firm named several companies it says are “compelling” such as Nvidia. The other buy-rated stocks include: JD.com, Block and Toronto-Dominon. Toronto-Dominion Toronto-Dominion Bank was recently upgraded to buy from neutral by analyst Ebrahim Poonawala. The Canadian bank had been under scrutiny for failing to properly maintain its anti-money-laundering unit, but Poonawala said the company is turning a corner following a series of fines and penalties imposed by the U.S. Department of Justice. New CEO Raymond Chun took the helm on Feb. 1, bolstering Poonawala’s confidence in the stock. He expects the new executive will help drive the franchise “toward improved profitability,” he wrote. Shares are up 8% this year and remain attractive, he said. “We believe the stock is more than adequately discounting downside risks, while giving little credit for improved execution,” Poonawala wrote. Toronto-Dominion will report earnings in late February. JD.com The China-based e-commerce company really is firing on all cylinders, according to analyst Joyce Ju and team. JD shares are up almost 75% over the past year with plenty more room to run, the firm says. “Direct sales revenues are estimated to grow 10.5% YoY, driven by 10.6% growth in electronic and home appliances sales and 10.3% growth in general merchandise sales,” she wrote. Further, Ju estimates that other services revenue like logistics will be markedly higher. The firm likes JD’s direct sales model as well as its third-party marketplace capabilities. “JD.com should grow moderately faster than the industry average off a lower base, driven by diversification of product categories and expansion in business models,” she wrote. JD is scheduled to report earnings in early March. Block Analyst Jason Kupferberg is standing by Block this year as a slew of positive metrics shows the fintech payment company is extremely well positioned. “We are bullish on [Block’s] full-fledged dual-sided ecosystem,” he wrote referring to its financial apps, Cash App and Square. The latter is primarily used by businesses. The firm says the stock is just not getting enough credit from investors. “[Block’s] combination of top-line growth and profitability (best among large-caps) is underappreciated in our view…,” he added. Kupferberg acknowledged the company’s Feb. 20 earnings report might not be a significant event for the stock as shares are up almost 25% over the last 12 months. Still, the firm says it sees more upside ahead. Nvidia “Expect Q4 eps call to reassure on CY25 outlook. Reiterate Buy, top pick ahead of NVDA’s FQ4’25 (Jan) earnings call scheduled for 26-Feb. We expect modest beat/inline sales guidance and lower GM in FQ1 (Apr) given Blackwell product transition/China restrictions.” Block “[ Block ]’s combination of top-line growth and profitability (best among large-caps) is underappreciated in our view, and as a US-centric re-acceleration story, we believe shares can outperform in ’25. … .We are bullish on [Block’s] full-fledged dual-sided ecosystem. We believe the stock is not being given enough credit for the general resilience the business has shown to date as well as its opex discipline.” Toronto-Dominion “We are upgrading our rating on (Toronto-Dominion) TD Bank-TD to Buy from Neutral on increased confidence that new leadership under CEO Raymond Chun can fix the US AML issues while driving the franchise toward improved profitability relative to our current forecast. … .We believe the stock is more than adequately discounting downside risks, while giving little credit for improved execution.” JD.com “Direct sales revenues are estimated to grow 10.5% YoY, driven by 10.6% growth in electronic and home appliances sales and 10.3% growth in general merchandise sales. … .JD.com should grow moderately faster than the industry average off a lower base, driven by diversification of product categories and expansion in business models.”
Nvidia is compelling ahead of earnings, Bank of America says