Bank of America Securities has reaffirmed a slate of six U.S. stocks it classifies as high grade, selecting companies across healthcare, consumer retail, automotive finance and midstream energy. The broker's choices reflect a preference for firms that generate steady free cash flow, hold leading market positions and possess visible catalysts to support earnings in a still uncertain macroeconomic backdrop.
Below is a sector-by-sector breakdown of the names BofA continues to back and the rationale cited for each.
Healthcare - AbbVie
BofA remains constructive on AbbVie, pointing to the drugmaker's diversified product mix. The firm notes confidence that AbbVie can manage the slow decline in Humira revenue by leaning on newer immunology and oncology treatments. Growth from newer medicines such as Skyrizi and Rinvoq, combined with strong free cash flow and an appealing dividend policy, form the basis of BofA's positive stance.
Healthcare - CVS Health
CVS Health is highlighted for combining defensive business traits with longer-term expansion opportunities through an integrated healthcare model. BofA references the company's pharmacy operations, its insurance businesses and a broadening healthcare services platform as drivers of sustainable earnings growth. The broker also notes that ongoing cost efficiency efforts could help margins over time.
Consumer - AutoNation
AutoNation is viewed as well positioned to benefit from continuing vehicle demand, in BofA's assessment. The broker underscores AutoNation's disciplined capital allocation, consistent profitability across both new and used vehicle sales, and the potential for growth in higher-margin after-sales services and financing activities to support earnings as the broader automotive market normalises.
Consumer - Dick's Sporting Goods
BofA continues to favour Dick's Sporting Goods based on its competitive positioning and track record of market share gains. Investments in an omnichannel retail strategy, disciplined inventory controls and premium store formats are cited as elements that should help the company sustain revenue growth and profitability despite a challenging retail environment.
Financial Services - GM Financial
The broker maintains a positive view on GM Financial, pointing to stable credit metrics and close alignment with General Motors' vehicle sales ecosystem. BofA expects the lender to generate healthy returns across lending and leasing operations, supported by ongoing demand for vehicle financing and prudent risk management practices.
Energy - ONEOK
BofA's constructive stance on ONEOK is rooted in the company's fee-based midstream business model and exposure to rising U.S. natural gas and natural gas liquids volumes. The broker highlights strategic acquisitions, expansion of infrastructure assets and predictable cash flow as factors that should underpin medium-term earnings growth and support shareholder returns.
Across the list, BofA underscores common attributes it values when designating high-grade names: resilient earnings profiles, attractive valuations and identifiable growth drivers that should help these companies navigate uncertain macro conditions while continuing to generate shareholder value.