Analysts at Bank of America have named a slew of global stocks that they believe will benefit as the economy enters a "boom" cycle. Bank of America believes the cycle — marked by rising inflation and bond yields alongside declining growth — could benefit certain stocks that have "outperformed strongly" in previous boom periods in 2005 and 2010. "Boom" stocks are deemed "cheap" and possess "high growth," the bank's strategists, led by Paulina Strzelinska, said in a research note on Nov. 17. The bank noted that the overlap between these two trends is currently at an all-time high — implying a record number of stocks that are considered both cheap and with a high growth potential. Top "boom" stocks are trading at a 44% discount to the market compared to the long-term average, implying an attractive valuation entry point, the strategists said. Stock picks The basket is overweight stocks in the financial services and energy sectors. "Banks benefit in the rising bond-yield backdrop, while higher inflation is set to support energy [firms]," the bank explained. Bank of America's picks in the banking sector include British banks NatWest , Barclays, Lloyds and Standard Chartered , France's Credit Agricole and Societe Generale , Dutch financial services firm Exor , Germany's Deutsche Bank and Spain's CaixaBank . In the energy space, the bank's picks include Spanish energy firm Repsol , Norwegian energy firm Equinor , Italian oil major Eni as well BP . Other picks within Bank of America's basket include the world's largest steelmaker ArcelorMittal , German chemicals maker Covestro , Danish shipping giant Moller- Maersk , British luxury carmaker Rolls-Royce and Anglo-swiss mining company Glencore .
A sign hangs above the entrance to a Bank of America branch in Chicago, Illinois.
Analysts at Bank of America have named a slew of global stocks that they believe will benefit as the economy enters a "boom" cycle.