Five Stocks That Have More Room to Grow, According to Bank of America

Bank of America has recently spotlighted several companies that analysts believe have significant room to grow, noting that some stocks are too undervalued to overlook. Among the top picks are well-known names like Disney, AT&T, Oddity Tech, BellRing Brands, and Primo Brands—all of which have received “Buy” ratings from the firm.

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AT&T: A Strong Comeback Story

AT&T stood out in the report, with analyst Michael Funk reinstating coverage on the telecom giant. He argued that the stock is deeply undervalued given the company’s recent operational momentum. Funk pointed out that AT&T boasts a powerful combination of wireless and fiber network assets, which positions the company well in a competitive industry landscape.

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Bank of America believes AT&T should be valued more similarly to T-Mobile (TMUS) than to Verizon (VZ), given its fundamental strength and strategic initiatives. Funk emphasized the company’s stable, subscription-based business model and highlighted AT&T’s long-term plan to return capital to shareholders. As of Friday, AT&T shares had climbed 19% this year. Funk described it as offering the "best balance of growth and returns" among its peers.

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Fiber is especially important to AT&T’s long-term strategy, and Funk believes the company is structurally sound and poised to perform well even in a challenging market. This reinforces Bank of America’s bullish stance on the telecom stock.

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BellRing Brands: Undervalued and Built for Growth

BellRing Brands, a company specializing in protein drinks and nutrition-focused products, is another standout on Bank of America’s list. Analyst Yasmine Deswandhy highlighted that the stock is currently undervalued relative to its impressive history of sales growth and the potential for continued expansion.

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Deswandhy acknowledged that the health and wellness market remains strong as consumers continue exploring innovative approaches to dieting. While competition has grown and retail dynamics have shifted, she sees these changes as natural developments in a still-maturing market.

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In her view, such shifts are necessary to bring the health foods category from the fringe into the mainstream. BellRing’s ability to sustain strong performance in this evolving environment makes it an attractive investment. Despite a 23% drop in shares this year, Deswandhy believes the company is "built for endurance," with long-term potential that far exceeds current valuations.

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Disney: A Cruise-Ready Rebound

Bank of America analyst Jessica Reif Ehrlich is also optimistic about Disney, stating the company is "cruising along" as it heads into its earnings report in early August. Ehrlich pointed to several near-term catalysts that could propel Disney’s stock, including a possible turnaround in profitability for its direct-to-consumer (DTC) segment, a reacceleration in theme park revenues, and a strong lineup of upcoming movie releases that should support other business divisions.

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Concerns had emerged around Disney’s Experiences segment—which includes theme parks and cruise ships—but Ehrlich believes those worries are overblown. The division appears to be performing in line with fiscal year 2025 expectations, she said, and Disney’s growing fleet of cruise ships could further bolster results in the coming years.

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In addition, Ehrlich noted that Disney’s sports advertising business, particularly through its ownership of ESPN, continues to be a bright spot. So far this year, Disney shares have risen nearly 8%, and Bank of America sees additional upside from here.

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Oddity Tech: Disrupting the Beauty Industry

Oddity Tech, a tech-driven beauty company, was also named as a compelling opportunity. Bank of America sees significant potential in the company’s ability to leverage its technological edge to take market share from traditional beauty brands. The firm anticipates more than 20% annual sales growth, with potential for even stronger performance fueled by new product launches and a loyal, growing customer base.

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Looking further ahead, Oddity is expected to debut two new brands between 2025 and 2026, which should allow it to tap into new customer segments and drive further expansion. Bank of America believes these upcoming product lines will serve as key growth engines and solidify Oddity’s position as a disruptive force in the beauty industry.

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Primo Brands: Riding the Bottled Water Wave

Finally, Primo Brands, which operates in the bottled water space, earned a Buy rating due to long-term trends favoring its core business. Bank of America noted that shifting consumer preferences toward healthier beverage options provide a strong tailwind for the company’s top-line targets.

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The firm also pointed to near-term benefits from synergy realization, which should help fuel sustainable growth in earnings before interest, taxes, depreciation, and amortization (EBITDA). With favorable market dynamics and internal efficiency gains, Primo is seen as a solid play for investors seeking both stability and growth.

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In summary, Bank of America’s analysts have identified a group of companies that appear undervalued but are poised for growth thanks to strong fundamentals, market positioning, and future catalysts. Whether it’s AT&T’s fiber-powered momentum, BellRing’s resilience in the health sector, Disney’s theme park and cruise rebound, Oddity’s tech advantage, or Primo’s alignment with health-conscious trends, each stock offers a compelling case for upside in the months ahead.

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