Bank of America reveals 5 top stocks based on companies' strong charts

Published Wed, May 25 20228:14 PM EDTUpdated Wed, May 25 20229:06 PM EDT

Lucy Handley @in/lucy-handley-b2b0a61a/@lucyhandley

Bank of America has named a raft of stocks with strong corporate charts, including five that are buy-rated by its analysts. Bank of America analysts, led by Jason Fairclough, assessed charts from a range of companies — all metals and mining firms — to find what it calls "killer" statistics. A number of companies that made the list are buy-rated by Bank of America's analysts, including: Rio Tinto , which presented a chart forecasting significant market growth in lithium, aluminum and copper — all key portfolio commodities for the company. "Rio Tinto has market presence in several commodities key to the energy transition" the analysts stated. "High demand levels in key commodities point to prices remaining higher for longer." The analysts also liked Antofagasta 's chart showing its plans for copper production, with potential growth of around 30% by 2026. Describing the company as a "copper pure play," the analysts noted that the copper supply deficit through to 2050 was a "hot topic" at this year's conference. Aluminum and renewable energy firm Norsk Hydro 's chart showed its ambitions in recycling aluminum. The company aims to double its use of discarded metal by 2025 and increase earnings before interest, taxes, depreciation and amortization (EBITDA) by up to 1.1 billion Norwegian krone ($114 million) over the same period, according to Bank of America's analysts. Newmont makes the bank's list for being the world's number-one gold producer, with a pipeline of more than 20 projects running into the 2040s. Its chart emphasized its position as a "blue chip gold stock that does what it says on the package," according to Bank of America's analysts. "Bottom line, if you want a quality gold exposure ... Newmont ticks a lot of boxes." Canadian gold company Agnico Eagle also makes the list, with its chart emphasizing its position as a "low risk, low complexity gold producer vs. peers," according to Fairclough and colleagues. The company's share growth has risen by a compound annual growth rate (CAGR) of 12% since 2005, the bank said, meaning it "considerably" outperforms its peers.

Brendan McDermid | Reuters

Bank of America has named a raft of stocks with strong corporate charts, including five that are buy-rated by its analysts.