Bank of America is bullish on these top stocks ahead of earnings

Bank of America identified buy-rated stocks ahead of third-quarter earnings, citing potential catalysts at DraftKings, BWX Technologies, Grocery Outlet, Grab and AstraZeneca. DraftKings is down 44% this year, while BWX Technologies is down about 17% in 2026; despite remaining buy-rated, BWX analyst Ronald Epstein cut his price target to $200 from $250. Grocery Outlet is up 18% this year, and Bank of America cited an EPS rebound opportunity and management execution.

Analysis

The useful signal is not the broad buy list but the uneven quality of its catalysts. DKNG offers the clearest near-term setup, but the thesis hinges on estimates actually stabilizing: prediction markets could expand engagement, yet they may also compete for the same wagering wallet and face a different regulatory path. A favorable earnings reaction would need support from handle, customer economics and guidance—not just a less-bad consensus. GO’s opportunistic sourcing could improve traffic and gross profit, while delivery price parity may widen reach; however, matching prices across DoorDash, Uber Eats and Instacart does not establish attractive economics after commissions and fulfillment costs. That is the key item to verify. BWXT has a credible long-duration nuclear/defense demand narrative, but a lower target alongside a Buy rating argues against treating the theme as near-term earnings certainty; execution, contract conversion and capacity matter more than addressable-market language. AZN’s pipeline case is inherently catalyst- and trial-dependent, while GRAB’s near-term resilience is exposed to FX and fuel, which can pressure reported growth or mobility economics. Overall, this is a mildly positive, issuer-specific setup—not a reason to buy the list indiscriminately. The next few weeks favor event discipline; over 6–18 months, realized margins, clinical data and contract delivery should determine whether the thematic premiums persist.

Key Decisions for Investors

• DKNG: Consider a small, staged long ahead of its report later this month rather than buying the full position pre-event. Add only if guidance/estimates stabilize and wagering economics hold up; reduce or exit if management signals continued estimate deterioration or prediction-market competition is worsening. Treat regulatory developments as a separate downside catalyst.
• GO: Avoid chasing the year-to-date rebound before the October 21 report. Watch gross margin, comparable traffic/basket trends and the economics of delivery price parity. A margin-backed traffic improvement would support a long; parity that lifts sales but dilutes profit would falsify the rebound thesis.
• BWXT: Keep on a pullback/watch list rather than paying up for the nuclear theme into early-November earnings. Seek evidence of improved financial flexibility translating into contract execution and cash generation. Reassess if guidance or delivery milestones weaken; the analyst’s target reduction is a reminder that attractive end markets do not eliminate valuation and execution risk.
• AZN and GRAB: Do not infer a near-term trade from the positive commentary alone. For AZN, track trial readouts and launch execution; for GRAB, monitor currency and fuel effects alongside segment momentum. Upgrade either to a position only when the relevant catalyst and financial impact are independently observable.