Huge pandemic stock market lows hit a hurdle in the third quarter. After setting new records in August, the S&P 500 experienced its worst month since March 2020 in September. While some investors worry about rising interest rates and high inflation in the near term, most remain optimistic about rising vaccination rates and the coming economic recovery. Bank of America recently released its quarterly list of the best stock picks for the next three months. Here are eight high conviction stocks to buy that have bullish catalysts ahead in the fourth quarter.

APA Corp. (symbol: APA)

APA is an American producer of oil and natural gas. Oil and natural gas prices recently hit multi-year highs amid concerns over short-term supply constraints and a rebound in global energy demand. Analyst Doug Leggate says ABS’s mix of domestic and international business is not fully appreciated by the market, in part due to its complexity. He says the company’s balance sheet will improve over time, with its unhedged production, which will help shift the value of debt to equity and serve as a bullish catalyst. Bank of America has a buy rating and a price target of $ 40 for the APA stock, which closed at $ 26.22 on October 14.

CNH Industrial SA (CNHI)

CNH Industrial manufactures agricultural and construction machinery, trucks and powertrains. Analyst Ross Gilardi says the agriculture industry is booming and CNH stands to benefit from increasing investment in precision agriculture. In addition, he says the spin-off of CNH’s Iveco commercial vehicle business and the closing of its acquisition of Raven could help unlock value as CNH’s agricultural equipment business is currently trading. at a lower price than the pure competitor Deere & Co. (DE). Gilardi says CNH’s third quarter earnings report in early November could be the next bullish catalyst for the stock. Bank of America has a buy rating and a price target of $ 25 for CNHI stock, which closed at $ 16.51 on October 14.

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East West Bancorp Inc. (EWBC)

East West Bancorp is a middle market lender focused on the banking trade between the United States and China. Analyst Ebrahim Poonawala says East West has a compelling risk-reward bias. He says the company could exceed its loan growth forecast between 9% and 10% in 2021. Poonawala projects a 16% return on tangible equity for the year, which he calls a “top return profile.” . East West earnings are also extremely sensitive to interest rates, and Poonawala says the stock’s earnings multiple will likely rise ahead of the Federal Reserve’s next rate hike cycle. Bank of America has a buy rating and a price target of $ 100 for the EWBC stock, which closed at $ 82.08 on October 14.

Additional space storage inc. (EXR)

Extra Space Storage is a real estate investment trust that owns and operates self-storage properties. Analyst Jeffrey Spector says the storage industry is a relatively defensive way to invest in real estate. Specter says Extra Space sets itself apart from other storage inventories because of its experienced management team, third-party management platform, and high-quality demographics. He predicts that a stronger economy will help Extra Space exceed consensus earnings expectations. Additionally, potential price hikes could act as a bullish catalyst in the fourth quarter. Bank of America has a buy rating and price target of $ 218 for the EXR stock, which closed at $ 183.88 on October 14.

Fox Corp. (FOXA)

Fox is a media company that owns the Fox Broadcast Network, 29 TV channels, and several cable TV networks, including Fox News and Fox Sports. Analyst Jessica Reif Ehrlich claims Fox has an unrivaled portfolio of live sports and news assets and is the media company best positioned to benefit from online sports betting in the United States. Fox owns a stake in the high-growth sports betting platform FanDuel. Ehrlich says Fox’s streaming service Tubi and financial technology affiliate Credible Labs are also impressive sources of growth. Bank of America has a buy rating and price target of $ 54 for FOXA stock, which closed at $ 42.45 on October 14.

General Electric Co. (GE)

General Electric is an industrial conglomerate that produces jet engines, gas and wind turbines, and other industrial equipment. Analyst Andrew Obin says the combination of a recovery in the aerospace market and operational improvements from GE could be a powerful driver of earnings growth. He predicts that GE’s industrial free cash flow, or FCF, will grow from about $ 4.75 billion in 2021 to $ 7.5 billion in 2023. Obin says GE’s FCF figures for the third quarter and updated FCF 2021 forecast could be short-term bullish catalysts for action. . Bank of America has a buy rating and a price target of $ 128 for GE stock, which closed at $ 102.37 on October 14.

Medtronic API (MDT)

Medtronic is a medical device manufacturer specializing in cardiovascular, surgical, neuroscientific and diabetes-related equipment. Analyst Bob Hopkins says Medtronic shares are trading at a steep discount to many medical technology peers due to the company’s inconsistent financial performance and lagging growth rate. However, Hopkins says the company’s new leadership team is poised to deliver consistent results and potentially accelerate its revenue growth rate by 5%. Short-term bullish catalysts include data from Medtronic’s renal denervation clinical trials and European regulatory approval of its surgical robot. Bank of America has a buy rating and a price target of $ 150 for the MDT stock, which closed at $ 124.80 on October 14.

Uber Technologies Inc. (UBER)

Uber Technologies is a popular mobile platform for carpooling and food delivery. Analyst Justin Post says the expiration of the Pandemic Unemployment Assistance Program will reduce Uber’s driver shortage, which has weighed on the overall number of trips and coverage rates throughout. 2021. Uber has hinted that the third quarter could be its first quarter of profitability before interest, taxes, depreciation and amortization, a potential bullish catalyst for the stock. Post says improving confidence in profitability should help ease Uber’s current discount to its peers. Bank of America has a “buy” rating and a price target of $ 64 for the UBER stock, which closed at $ 47.28 on October 14.

Top Bank of America stock picks for the fourth quarter:

– APA Corp. (APA)

– CNH Industrial SA (CNHI)

– East West Bancorp Inc. (EWBC)

– Extra Space Storage Inc. (EXR)

– Fox Corp. (FOXA)

– General Electric Co. (GE)

– Medtronic PLC (MDT)

– Uber Technologies Inc. (UBER)