BofA names five stocks with high upside potential after reporting

Bank of America named stocks with significant upside potential after the publication of quarterly reports, reports CNBC. Among the companies the bank's analysts still see room for upward movement is Microsoft, which last week shocked Wall Street with strong quarterly results and, in particular, unexpectedly high revenue from its Azure cloud business. BofA also bet on Delta Air Lines, Domino's Pizza, Procter & Gamble and Levi Strauss.

Delta Air shares are down 15% in 2025, but according to opinion analyst Andrew Didora, the securities are too attractive to ignore. He said he remains positive following the company's latest quarterly report.

Despite continued uncertainty in consumer behavior, demand for the airline's premium services remains strong, Didora said.  "Delta's business class and premium cabin revenue grew 4.7 percent in the second quarter of 2025, while the core economy segment saw a 5.5 percent decline," he wrote.  "Delta's business class and premium cabin revenue grew 4.7 percent in the second quarter of 2025, while the core economy segment saw a 5.5 percent decline," he wrote. 

The analyst also noted the airline's consistent focus on free cash flow and debt reduction. Following the release of quarterly results, he raised his target price on the stock from $60 to $67 and said now is a good time to build a position in Delta Air.

BofA analyst Christopher Nardon stated that the iconic jeans maker is poised for solid growth. After a quarterly report and conference call with Levi's management, he noted that the company is making the right strategic decisions, effectively dealing with the challenges posed by U.S. trade restrictions.

"We see potential to expand Levi's brand presence on shelf and increase full-price sales in every region [of presence]," Nardon wrote. He said the company's own outlook for the second half of 2025 could be conservative. The analyst raised his target price on Levi's shares to $26 from $24, based on "increased confidence that the recent turnaround in sales growth is sustainable." 

Since the beginning of the year, the company's value is up 11%.

Domino's Pizza is well-positioned to expand market share, accounts BofA analyst Sarah Senatore. Following the company's report for the second quarter, she noted, "The loyalty program, innovative platform and value pricing should support comparable sales in the second half of the year and beyond.

Senatore also said Domino's has an "advantage of scale" with "industry-leading economic performance of franchise locations," which should help sustain demand for new openings. The pizza chain's stock is also up 11% this year.

P&G remains a benchmark in the FMCG sector, thanks to a "diversified portfolio of multi-billion dollar brands with leading positions in the global market," according to Bank of America. While the company's results have previously raised questions, measures to optimize its product mix are starting to yield positive results, analysts at the investment bank said. BofA stated that it sees "the potential for the company to sustainably outperform revenue expectations and raise guidance in the coming quarters."

Procter & Gamble shares are down 10% this year. 

According to BofA, Microsoft has the potential for sustainable revenue growth of 10-15% (low double-digit growth) over the next 3-5 years. The bank's analysts cited further expansion of the Azure cloud infrastructure platform, the Office 365 cloud suite, and growth in video game and Game Pass subscription revenue on the Xbox platform as the main drivers, reports CNBC.

Microsoft's value surpassed $4 trillion at one point last week - after publishing a strong report in which the company beat forecasts more significantly than ever. Its capitalization has increased by nearly a quarter since the beginning of the year.

According to FactSet, stock analysts are generally positive on all five stocks that BofA noted. The service's consensus rating for Microsoft is Buy, Delta Air Lines, Domino's Pizza, Procter & Gamble and Levi Strauss are Overweight ("above market"), which is also equivalent to a buy recommendation.

Average price targets suggest shares of Microsoft up 15.2%, Delta Air up 32.5%, Domino's up 10.2%, P&G up 14.2% and Levi's up 23.4% over the next year.

This article was AI-translated and verified by a human editor