Bank of America Upgraded Two Stocks Ahead of Earnings
The bank adjusted its ratings for DraftKings and Grocery Outlet as investors prepare for third-quarter financial results.
Updated on Oct. 10, 2026 in Stock Picks
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Bank of America released a new list of recommended stock picks for investors to watch heading into the third-quarter earnings season. The bank updated its outlook for specific companies including DraftKings and Grocery Outlet Holdings.
Why it matters
Analysts believe these selected stocks offer a favorable risk-reward outlook for investors ahead of upcoming quarterly reports. These ratings reflect evaluations based on financial profiles, market trends, and leadership initiatives.
Bank of America lowered the price target for BWX Technologies to $200 from $250. This follows a year where BWX Technologies shares fell 17% and DraftKings shares declined by 44%.
The players
Bank of America
A major financial institution that provides consumer banking services and investment research to retail and institutional clients.
Ronald Epstein
A financial analyst at Bank of America who covers industrial and technology stocks.
The details
Bank of America analysts arrived at these recommendations by reviewing financial performance and investor day sessions to gauge company health. They upgraded DraftKings from hold to buy and moved Grocery Outlet Holdings from neutral to buy. The firm also anticipates sales growth for AstraZeneca driven by new product launches and clinical trial catalysts, alongside expectations for Grab to maintain strong figures.
Timeline
October 21, 2026: Grocery Outlet Holdings reports earnings.
October 2026: DraftKings is expected to report quarterly earnings.
Early November 2026: BWX Technologies reports earnings.
Money Landscape
These ratings adjustments are part of the broader market preparation for the third-quarter 2026 earnings reporting cycle. Institutional guidance typically shifts as analysts refine their models to account for year-to-date performance and anticipated sector-specific trends.
If you are monitoring individual stocks in your portfolio, these upgrades highlight firms that analysts believe have favorable prospects before earnings releases. Decisions to adjust holdings based on analyst ratings should be discussed with a qualified financial or tax professional.
The takeaway
Market volatility in 2026 has impacted various sectors, and analyst ratings serve as one indicator for those reviewing their portfolios ahead of earnings reports. Investors should track the specific reporting dates for companies they hold to stay informed about potential fluctuations in share prices.
Further reading
For broader market analysis and research, see Stock Picks.
Source note: This article includes information reported by CNBC.
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