Bank of America said investors should buy shares in companies with high levels of cash as the broader market outlook is buffeted with headwinds. The S & P 500 fell nearly 20% in 2022, its worst annual performance since 2008, as concern over higher rates dented investor sentiment. The outlook for 2023 isn't much more promising, with growing expectations of a U.S. economic recession.
The company is coming off a monster year, surging more than 20% after rallying 83% in 2021. Analyst Steve Byrne said he thinks CF can build on those gains, noting: "Tight global nitrogen supplies + Ag cycle could readily continue into 2023." The stock has buy or overweight ratings from 50% of analysts covering it, and the average price target implies upside of more than 35%, FactSet data shows. Expedia also made Bank of America's list, with a free cash flow yield of 21%.