BANK OF AMERICA: Here are the 9 stocks we like most for the beginning of the year

Ticker: DIS

Industry: Media & Entertainment

Market Cap: $196.26 billion

Price Objective: $144

Potential Upside: +32%

P/E(2019): 15.3

% of sell-side rated Buy: 60%

Short interest % of float: 1.98%

BAML Comment:

"With a leading IP (intellectual property) portfolio that is poised to expand via the pending acquisition of a large portion of 21st Century Fox (FOXA), we believe DIS is best positioned to accretively extend its brands and content into new streaming platforms, including its own direct-to-consumer (DTC) efforts with ESPN+ and Disney+ (which will launch in the fall of 2019 and feature exclusive content from the Disney, Pixar, Marvel, Luscasfilm and National Geographic brands)," said Jessica Reif.

Source: BAML

Ticker: HON

Industry: Industrials

Market Cap: $99.73 billion

Price Objective: $180

Potential Upside: +37%

P/E(2019): 16.3

% of sell-side rated Buy: 74%

Short interest % of float: 0.82%

BAML Comment:

"In our view, given cyclical risks, investors will continue to assign premium multiples to 'quality names' over cyclical names, and we view HON’s valuation as attractive given its diversified portfolio with growth visibility and premium execution characteristics," Andrew Obin said.

Source: BAML

Ticker: EQIX

Industry: REITs

Market Cap: $31.547 billion

Price Objective: $490

Potential Upside: +41%

AFFO Multiple (2019): 16.2x

% of sell-side rated Buy: 92%

Short interest % of float: 1.3%

BAML Comment:

"EQIX is a top pick based on strong secular data center demand, exposure to faster growing European and Asian markets, projected revenue growth acceleration, and potential upside to 2019 forecasts," Michael J. Funk noted.

Source: BAML

Ticker: CI

Industry: Managed Care

Market Cap: $56.36 billion

Price Objective: $258

Potential Upside: +43%

P/E(2019): 12.5x

% of sell-side rated Buy: 71%

Short interest % of float: 4.5%

BAML Comment:

"We expect CI to outperform the group in 2019 as the Express Scripts acquisition adds capabilities, cashflow, and potential EPS upside (we think CI could achieve close to the low end of its 2021 pro forma EPS target a year early)," said Kevin Fischbeck.

Source: BAML

Ticker: CI

Industry: Managed Care

Market Cap: $56.36 billion

Price Objective: $258

Potential Upside: +43%

P/E(2019): 12.5x

% of sell-side rated Buy: 71%

Short interest % of float: 4.5%

BAML Comment:

"We expect CI to outperform the group in 2019 as the Express Scripts acquisition adds capabilities, cashflow, and potential EPS upside (we think CI could achieve close to the low end of its 2021 pro forma EPS target a year early)," said Kevin Fischbeck.

Source: BAML

Ticker: MRVL

Industry: Semiconductors

Market Cap: $7.92 billion

Price Objective: $24

Potential Upside: +48%

P/E(2019): 12.5x

% of sell-side rated Buy: 89%

Short interest % of float: 3.5%

BAML Comment:

"We believe the 35%+ sell-off from recent highs in March presents a particularly attractive buying opportunity for MRVL," said Vivek Arya.

"We see potential for further upside as the 5G mobile cycle ramps and MRVL has the opportunity to gain base-station design wins with new Tier 1 customers," Arya added.

Source: BAML

Ticker: LMT

Industry: Aerospace & Defense

Market Cap: $83.45 billion

Price Objective: $390

Potential Upside: +50%

P/E(2019): 13.5x

% of sell-side rated Buy: 64%

Short interest % of float: 0.99%

BAML Comment:

"Strong execution, cash flow generation and a shareholder-friendly capital redeployment strategy will likely continue to support share price performance in the near term," said Ronald J. Epstein.

Source: BAML

Ticker: TPR

Industry: Specialty Retail

Market Cap: $11.18 billion

Price Objective: $60

Potential Upside: +77%

P/E(2019): 12x

% of sell-side rated Buy: 70%

Short interest % of float: 1.88%

BAML Comment:

"We see sales drivers and gross margin opportunities for Coach, think Kate Spade synergy targets appear conservative and expect significant margin expansion for Stuart Weitzman over the next few years," said Lorraine Hutchinson.

"We view recent concerns surrounding slower Coach brand sales in China due to a luxury sales slowdown in the region as overblown and tariff worries as unfounded (only a MSD % of production in in China)," Hutchinson added.

Source: BAML