Bank of America says buy these five stocks that are set to rally in the second half

Bank of America has identified five high-conviction stock picks for the second half of the year, including Apple, Roku, Hinge Health, Datadog, and Jabil, citing compelling upside potential. The firm highlights Apple's expected strong iPhone upgrade cycle driven by Gen AI features and services growth; Roku's powerful advertising partnership with Amazon, leading to a raised price target of $100, and anticipated profitability expansion; and Hinge Health's leadership in the $18.5 billion digital care category with projected high teens top-line growth. Datadog is favored for its robust 20%+ cloud monitoring revenue growth, active participation in AI, and a raised price target of $150, while Jabil is positioned to benefit from secular growth in automotive, healthcare, and cloud sectors. These selections reflect BofA's view on companies with strong execution, strategic positioning, and favorable industry trends poised for sustained financial performance.

Analysis

Bank of America has identified five companies with buy ratings poised for significant growth in the second half of the year, focusing on specific catalysts across technology, healthcare, and manufacturing. For Roku, a recent advertising partnership with Amazon is seen as a powerful combination of its market-leading scale, with nearly half of all U.S. TV streaming time on its platform, and Amazon's data breadth, prompting a price target increase to $100 from $85. Roku shares are up 16% in 2025, with analysts expecting scaling profitability and free cash flow generation. Hinge Health, a recent IPO stock up nearly 18% in June, is highlighted as a leader in the $18.5 billion digital care category and is projected to deliver sustained high-teens topline growth while trading at a growth-adjusted discount. Datadog is positioned as a top pick despite being down 7% in 2025, with its price target raised to $150 based on healthy 20%+ revenue growth, strong participation in the AI theme, and robust demand signals. The list is rounded out by Apple, which is expected to benefit from a Gen AI-driven iPhone upgrade cycle, and Jabil, whose tailwinds from secular growth in EVs, healthcare, and cloud are anticipated to outweigh macroeconomic headwinds.

Key Decisions for Investors

• Investors with a growth mandate should assess the specific near-term catalysts for Roku, driven by its Amazon advertising partnership, and Datadog, whose 20%+ revenue growth and positioning in AI offer a compelling thesis despite its recent share price underperformance.
• Hinge Health warrants consideration for investors seeking growth at a reasonable price, as analysts note its leadership in a large addressable market combined with a valuation that trades at a 'growth adjusted discount' and a clear path to margin expansion.
• For exposure to secular trends within large-cap and industrial sectors, consider Apple's potential for a Gen AI-driven hardware cycle and Jabil's alignment with growth markets like EVs and healthcare, which are cited as strong enough to offset macro uncertainty.
• Given these theses are forward-looking, it is critical to monitor key execution milestones, such as Roku's progress toward scaling profitability, Datadog's ability to sustain its growth trajectory, and Hinge Health's successful expansion into new health categories and international markets.