Disney and these two other stocks are Bank of America's best ideas for the fourth quarter

Published Tue, Oct 1 201911:39 AM EDTUpdated Tue, Oct 1 201911:44 AM EDT

Disney, along with Target and Raytheon are in for a strong fourth quarter, according to Bank of America. The firm put together a list of stocks that they feel are slated to edge higher in the last three months of 2019. "We believe DIS is best positioned to accretively extend its brands and content into new streaming environments over the long-term, including its own direct-to-consumer (DTC) efforts with ESPN+ and Disney+," said Bank of America research analyst Jessica Ehrlich. Ehrlich said Disney's streaming platform launch, the 21st Century Fox integration, Star Wars attractions at Disney parks, a big movies releases like "Frozen 2" will all drive growth and investor sentiment over the next three months and beyond. Disney+ is set to launch in November and since the announcement the stock has risen 11%. Bank of America has a buy rating on Disney's stock and a $168 price target. Disney shares last traded at $130.37 on Tuesday. With a backdrop of a U.S.-China trade war, defense contractor Raytheon is also in for a strong rest of the year as it is largely insulated from macroeconomic weakness, with 75% of sales going to the U.S. government. "We continue to believe that the 1Q19 hiccup was likely due to timing and the company may be set up for more positive surprises in 2019," said Bank of America's Ronald Epstein in a note to clients. In addition to positive earnings, the firm is excited about Raytheon and United Technologies' combined aerospace business. Bank of America has a buy rating on the stock and a $265 price target. Raytheon last traded at $193.43 per share. Another stand-out stock heading into the fourth quarter is retailer Target, with momentum in its own merchandising brands, store remodels and drive-through pickup driving growth. "Continued same store sales momentum and increasing profitability of TGT's ecommerce business should support P/E multiple expansion," said Bank of America's Robert Ohmes. Bank of America has a buy rating on Target and a $125 price target. Target last traded at $107.35 on Tuesday. —with reporting from CNBC's Michael Bloom.

Bob Iger, former CEO, The Walt Disney Company

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Disney, along with Target and Raytheon are in for a strong fourth quarter, according to Bank of America.

The firm put together a list of stocks that they feel are slated to edge higher in the last three months of 2019.