Bank of America said there are several quality stocks that offer plenty of upside. The Wall Street investment bank said companies including Levi Strauss are well positioned for growth.. Other buy-rated stocks the firm is bullish on include TKO, Live Nation, TransDigm and PACCAR . Levi Strauss The denim company is firing on all cylinders, according to Bank of America. Analyst Christopher Nardone recently attended an investor meeting at Levi's and came away impressed. "LEVI has multiple avenues for sustainable longer term growth including product expansion (led by women's), [direct-to-consumer] momentum and premiumization," he wrote. The bank is particularly bullish on Levi's foray into clothing other than denim. "We see a significant opportunity for Levi's to broaden its assortment beyond bottoms, with a focus on offering the consumer a full head-to-toe offering," he said. Finally, Nardone said tariffs appear "manageable," adding that management is successfully implementing strategies to mitigate any interruptions. Shares are up 23% so far this year. TKO "The next round of growth" is coming for the sports entertainment company, analyst Brent Navon wrote recently. Simply put, the firm is bullish on TKO's recent media rights deals for its WWE and UFC brands. "We now expect a substantial portion of TKO's revenues to come from highly predictable revenue streams that are contracted with built-in escalators, at attractive margins," Navon said. Bank of America expects TKO to also pursue other streams of growth, including building its own boxing league. In addition, Navon says he likes TKO's "optionality from exposure to live events (both via ticketing revenues and site fees) as well as the growing popularity of live sports." TKO shares have rallied 31% in 2025 thus far. TransDigm Buy the dip in the aerospace parts company, Bank of America said. Analyst Ronald Epstein said the stock's 12.5% selloff in August is unwarranted. "Though the market reacted negatively to TDG's 3Q FY2025 print, we see the sell off as overdone and dislocated from fundamentals," he said, referring to TransDigm's latest earnings report. Epstein said he met with TransDigm management and came away feeling more upbeat. "While near-term choppiness in commercial [original equipment manufacturer] demand is a concern, we remain bullish on the margin opportunity and optionality TDG provides for investors," he said. August notwithstanding, TransDigm shares are higher by 11% in 2025 year to date. Levi Strauss "LEVI has multiple avenues for sustainable longer term growth including product expansion (led by women's), DTC momentum, and premiumization ... We see a significant opportunity for Levi's to broaden its assortment beyond bottoms, with a focus on offering the consumer a full head-to-toe offering." TKO "Multiple drivers beyond domestic media rights ... We now expect a substantial portion of TKO's revenues to come from highly predictable revenue streams that are contracted with built-in escalators, at attractive margins ... TKO provides optionality from exposure to live events (both via ticketing revenues and site fees) as well as the growing popularity of live sports." TransDigm "Though the market reacted negatively to TDG's 3Q FY2025 print, we see the sell off as overdone and dislocated from fundamentals. While near-term choppiness in commercial OEM demand is a concern, we remain bullish on the margin opportunity and optionality TDG provides for investors." PACCAR "PACCAR has a strong long-term track record of growing earnings and [free cash flow], taking market share with superior products and improving returns. We expect the truck production downturn to bottom in 2025 cycle and start to grow next year driven by a freight recovery & truck purchases ahead of EPA27 emissions change." Live Nation "As a global leader in live entertainment, we view Live Nation as a multi-year growth story underpinned by solid company fundamentals and several live entertainment tailwinds. LYV appears well positioned to drive double-digit [adjusted operating income] growth in the years ahead while risks from a DOJ break-up have tempered somewhat."
