MW Sick of hearing about the AI trade? BofA offers 16 hot stock picks that go far beyond tech.

By Emily Bary

Valuations for AI stocks could come down if monetization doesn't play out as expected. But BofA sees plenty of opportunities elsewhere among stocks 'overshadowed' by the tech buzz.

Viking's "culturally enriching itineraries" help the cruise operator deliver better financials than peers and make the company's stock attractive, according to BofA.

With artificial intelligence dominating so much of the conversation on Wall Street, investors may be missing out on attractive plays far outside the technology sphere, according to Bank of America analysts.

As those analysts observed, many tech hyperscalers have stocks trading at record multiples - and there is the potential that their valuations drop if AI monetization doesn't live up to expectations.

There could also be downstream effects. "If tech-driven efficiency comes with waning demand for middle-income white-collar jobs, this impairs consumer spending," the BofA analysts noted in a Tuesday report. "With consumers typically spending until they lose income, much of that risk may still be ahead."

See also: This investing strategy features value stocks doing well 'below the AI circus'

That said, the BofA team still sees intriguing and "overshadowed" opportunities among companies that aren't deemed to be clear beneficiaries of the AI wave. The analysts recently screened for buy-rated stocks that aren't directly linked to AI, have seen positive earnings revisions over the past three months, are trading below their highs and are also trading at a discount to the broader market. From there, they narrowed the list to high-conviction picks and listed other names they deemed to be deserving.

Diving into the picks

   Company                              Price change from 52-week high 
   Amcor Plc                                                    -20.5% 
   AT&T Inc.                                                    -15.0% 
   BGC Group Inc.                                               -16.8% 
   Church & Dwight Co. Inc.                                     -24.5% 
   Dollar General Corp.                                         -10.5% 
   Eversource Energy                                             -2.1% 
   Freeport-McMoRan Inc.                                        -13.0% 
   Henry Schein Inc.                                            -10.6% 
   J.B. Hunt Transport Services Inc.                            -12.7% 
   KeyCorp                                                       -8.7% 
   McCormick & Co. Inc.                                         -22.5% 
   Oneok Inc.                                                   -41.0% 
   Progressive Corp.                                            -24.5% 
   Regency Centers Corp.                                         -8.3% 
   Viking Holding Ltd.                                           -8.1% 
   Walt Disney Co.                                               -7.4% 
                                                       Source: FactSet 

Amcor (AMCR) makes the cut for its "undervalued upside potential," with the BofA team cheering new leadership at the consumer-packaging company and opportunities for operational improvements. The company's new chief financial officer "is well regarded by investors" and is in the midst of a strategic review of Amcor's North America beverage-container business, the analysts noted.

They also like AT&T $(T)$, whose stock they think has taken an unfair beating over fears of ramping wireless competition. "Investors are concerned Verizon's renewed focus on subscriber retention and net-add share will result in new round of price-driven competition and greater promotional activity," the BofA team wrote. But Verizon's $(VZ)$ recent earnings commentary suggests to the analysts that "pricing is the last lever the company wants to pull."

See also: The biggest highlight from Verizon's earnings report isn't a number

Meanwhile, AT&T could see a growth pickup in earnings per share, and the BofA team likes the company's positioning in the fiber market.

With BGC $(BGC)$, an interdealer broker, they think investors can play booming power consumption in an intriguing way. BGC has "a dominant position in energy derivatives," the analysts noted, but investors have been "distracted" by the company's recent move into interest-rate futures.

Church & Dwight $(CHD)$, the owner of brands like Arm & Hammer and Nair, has a "valued-oriented" portfolio that could be well suited for current conditions. "Slower wage growth and rising costs have continued to challenge the U.S. consumer and we believe [Church & Dwight] benefits as consumers trade down," the BofA analysts wrote.

Dollar General $(DG)$ is another play on that trend. "Trade-in continues from middle/higher-income consumers while core customers also increase spending as they desire lower price points/pack sizes," the analysts said. Plus, the company is in the midst of reviving stores following past complaints about cleanliness and products going out of stock.

Within the energy sector, BofA thinks Eversource Energy (ES) is primed to capitalize on an improving regulatory environment in Connecticut. The company, which distributes natural gas and electricity to consumers, may see balance-sheet improvements and its shares could narrow their valuation gap relative to peers, the analysts noted.

Read: Bloom Energy's AI bonanza leaves Wall Street with plenty of questions

Freeport-McMoRan's stock $(FCX)$ also trades at a discount to peers, having been weighed down by a mining accident that will take time and money to remedy. But the company's financial estimates around the cost of repairs might be conservative, the BofA team said, and Freeport-McMoRan could generally be a beneficiary of rising copper prices (HG00) driven by "challenged supply and growth in demand from electrification."

The analysts see upside potential as well for shares of dental distributor Henry Schein $(HSIC)$, which is moving toward being more of manufacturer in addition to its distribution work. That transformation could boost the company's growth prospects and margin profile, they said.

BofA flagged J.B. Hunt $(JBHT)$ as well, as the company could benefit from cost-cutting moves and its large size. The team "is optimistic on the company's positioning in the midst of rail M&A given that it is the largest domestic intermodal provider and its scale should allow it to adapt to industry changes," according to Tuesday's note.

Following pressure on regional-bank stocks, BofA sees opportunity in shares of KeyCorp (KEY), which have lagged peers over one, three and five years. The company has attractive elements like a strong commercial and industrial lending business and "a well-positioned middle-markets investment bank."

For McCormick $(MKC)$, BofA acknowledged that tariffs could result in higher costs for the company, a factor that's weighed on the stock. But the spice maker has been growing organic sales and volume - a rarity in the packaged-food industry, and something the analysts deem worthy of investor attention.

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The analysts also called out Oneok $(OKE)$, the "worst-performing midstream stock over the last year." But the energy player could see better free-cash-flow trends than any of its peers over the medium term, BofA said.

Insurer Progressive $(PGR)$ strikes BofA as compelling in light of an impressive feat: "No U.S.-listed large-cap company has seen steeper positive EPS revisions than Progressive over the past two years." Still, the stock looks cheap to the analysts, who see a juicy dividend hike on the horizon.

With Regency Centers (REG), a real-estate investment trust that operates retail shopping centers, BofA noted strong demand from tenants in a market where supply is limited. Regency also has "defensive positioning given its main exposure is to necessity-based retailers, who tend to be more resilient in a downturn," the analysts wrote.

They see opportunities as well in cruising - particularly for Viking Holdings $(VIK)$, whose "culturally enriching itineraries, immersive experiences" and all-inclusive arrangements drive better margins than peer cruise operators. Within river cruising, Viking commands more than half the market, the analysts added, and its differentiated offering makes the stock worthy of a premium multiple, in their view.

Finally, there's Walt Disney $(DIS)$, another travel and experiences play. The company could benefit from the introduction of two new cruise ships, and while the government shutdown poses some risk to this quarter's performance due to trip disruptions, BofA thinks most travelers will opt to reschedule vacations rather than cancel them outright.

-Emily Bary

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November 12, 2025 07:00 ET (12:00 GMT)

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