Bank of America highlighted five stocks that are poised for upside and that investors should snap up heading into quarterly earnings. The firm said it likes companies that are resilient in a choppy macro environment. They include buy-rated stocks like Coupang, PayPal, Fidelity National, Relx and Flutter. PayPal Analyst Jason Kupferberg is standing by the stock ahead of earnings later this month . He said he has “low expectations” heading into the quarterly report, but the analyst admitted that a turnaround is happening. “While not our base case, in our view, it would not be unreasonable for PYPL to decline to affirm full-year guidance until more macro clarity emerges,” he wrote. In addition, the firm lowered its price target to $93 per share from $103. Still, Kupferberg said there is a slate of positive catalysts in the year ahead and that investors should buy the dip. Shares are down 28% this year. “We reiterate our Buy rating on brand, balance sheet, optionality on button trends ultimately improving, and valuation” the analyst wrote. Fidelity National Information Services Kupferberg is also bullish on shares of Fidelity National. The fintech company is scheduled to report earnings in early May and remains a top pick at the firm. “A solid 1Q print could be a modestly positive catalyst, as FIS is relatively insulated from current elevated levels of macro uncertainty, given its limited exposure to non- discretionary consumer spending and ~80% recurring revs.,” he wrote. Shares are off more than 7% in 2025, and they are extremely compelling, according to the firm. “At ~11.4x ’26 [price-earnings], we see attractive risk/reward given FIS’ high recurring revenue, sustainable margin expansion, and ample return of cash to shareholders,” Kupferberg said. Flutter Entertainment Shares of the sports betting company are down nearly 12% this year, but investors should buy the dip, according to analyst Adrien de Saint Hilaire. The firm said that “underlying trends [are] solid” despite recent headwinds like slowing consumer spending and rising competition. “While the US overhang may take some time to be lifted, we think concerns on other points are exaggerated,” de Saint Hilaire added. Key positive catalysts ahead include further state legalization, a robust technical platform, international growth and tailwinds in foreign exchange, he added.. The analyst also has Flutter on the firm’s 25 stocks for 2025 list top ideas list. Coupang “1Q25 likely to be in line. We expect 1Q25 net sales of US$7.9bn and adj EBITDA of US$402mn, in line with consensus expectations. … We expect CPNG to be one of very few retailers that can gain market share and raise return profile at the same time. CPNG earnings should be both driven by the strong growth and margin improvement in product commerce, as well as by the turnaround of the developing offering business.” Fidelity National “A solid 1Q print could be a modestly positive catalyst, as FIS is relatively insulated from current elevated levels of macro uncertainty, given its limited exposure to non-discretionary consumer spending and ~80% recurring revs. … At ~11.4x ’26 P/E, we see attractive risk/reward given FIS’ high recurring revenue, sustainable margin expansion, and ample return of cash to shareholders.” Flutter Entertainment “While the US overhang may take some time to be lifted, we think concerns on other points are exaggerated. Post sell-off, shares trade on 24x 2025E P/E, attractive given our expectations for 32% 2025-27E EPS CAGR. Madness to impact 1Q, but underlying trends solid We expect Flutter will fully repeat its FY25 guidance alongside 1Q25 results.” Relx “RELX trades at a discount to Information Services peers. We believe it could re-rate as it 1) demonstrates sustainability of growth in Risk & Business Analytics which supports the medium-term group outlook, 2) leverages generative AI to drive accelerated growth in Legal and 3) Improves growth in STM [science, technical, medical] via mix shift towards higher-growth databases and tools.” PayPal Low expectations, but print unlikely to be positive catalyst. … While not our base case, in our view, it would not be unreasonable for PYPL to decline to affirm full-year guidance until more macro clarity emerges. … We reiterate our Buy rating on brand, balance sheet, optionality on button trends ultimately improving, and valuation.” Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
