Five Stocks to Buy Ahead of Earnings With Upside, Bank of America Says

Bank of America has identified five stocks it believes are well-positioned for gains as companies prepare to report their quarterly earnings. These stocks, which the firm rates as “Buy,” are seen as resilient in today’s uncertain economic climate. The list includes PayPal, Fidelity National Information Services, Flutter Entertainment, Coupang, and Relx. Bank of America analysts argue that these names are likely to benefit from both internal improvements and external macro trends, making them attractive picks for investors seeking value and stability in turbulent times.

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PayPal

Bank of America analyst Jason Kupferberg remains cautiously optimistic about PayPal ahead of its upcoming earnings release. While he maintains low expectations for the immediate results, he acknowledges that a turnaround appears to be underway. Kupferberg noted that it wouldn’t be surprising if the company refrains from reaffirming its full-year outlook due to lingering macroeconomic uncertainty.

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Despite cutting the price target on PayPal from $103 to $93 per share, Kupferberg believes investors should still consider buying the dip. The stock has dropped 28% so far this year, making it more attractive from a valuation standpoint. Kupferberg emphasized PayPal’s strong brand, healthy balance sheet, and improving trends in its “Pay with PayPal” button feature. He also believes the current price underestimates the company’s potential for recovery and growth.

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Fidelity National Information Services (FIS)

Kupferberg is similarly bullish on Fidelity National, calling it one of his top picks. The company, a major player in the fintech space, is expected to report earnings in early May. According to the analyst, Fidelity National stands out because of its limited exposure to discretionary consumer spending and its high volume of recurring revenue—approximately 80%.

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The stock is down more than 7% in 2025, but Bank of America sees significant upside. Kupferberg pointed to Fidelity’s sustainable margin growth and consistent return of capital to shareholders as reasons for optimism. Trading at about 11.4 times projected 2026 earnings, the stock presents an appealing risk/reward setup in the eyes of the firm.

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Flutter Entertainment

Flutter Entertainment, a major sports betting firm, has seen its stock fall nearly 12% this year. But Bank of America analyst Adrien de Saint Hilaire sees this as an opportunity. He believes recent challenges, such as slower consumer spending and intensifying competition, have overshadowed the company’s strong fundamentals.

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De Saint Hilaire pointed out that Flutter’s long-term prospects remain solid, thanks to the ongoing expansion of legalized sports betting in the U.S., a strong digital platform, international growth, and favorable foreign exchange dynamics. Although uncertainty around the U.S. regulatory landscape may persist, he believes other investor concerns have been overstated. Flutter also holds a spot on Bank of America’s list of top 25 stock ideas for 2025.

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The analyst expects Flutter’s first-quarter results to reaffirm its full-year guidance. He believes the current share price—trading at 24 times projected 2025 earnings—is compelling given the firm’s projected 32% compound annual earnings growth rate from 2025 to 2027.

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Coupang

Coupang, the South Korean e-commerce giant, is also on Bank of America’s radar. The firm projects that first-quarter 2025 results will be in line with expectations, forecasting net sales of around $7.9 billion and adjusted EBITDA of $402 million.

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Analysts are particularly optimistic about Coupang’s ability to grow market share while improving profitability. The company’s product commerce segment continues to show strong momentum, and its newer ventures are starting to gain traction. Bank of America sees Coupang as one of the rare retailers capable of simultaneously expanding both growth and returns, making it a strong candidate for long-term investment.

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Relx

Relx, a global provider of information and analytics, trades at a discount compared to its peers in the Information Services space. Bank of America believes that gap could narrow as the company demonstrates consistent growth across several areas.

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The firm highlighted three key drivers that could help Relx re-rate: sustained growth in its Risk & Business Analytics division, the application of generative AI to accelerate gains in its Legal segment, and a strategic shift in its STM (Science, Technical, Medical) business toward higher-growth databases and tools. These elements are expected to support a more optimistic medium-term outlook for the company.

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In summary, Bank of America sees these five stocks as strong buys despite near-term market volatility. Each company has its own set of catalysts that could drive growth over the next several quarters, and analysts believe now may be the right time for investors to take advantage of their lower valuations.

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Whether it’s PayPal’s ongoing transformation, Fidelity National’s recurring revenue strength, Flutter’s market leadership in sports betting, Coupang’s rising profitability, or Relx’s growth potential in AI and analytics, these picks offer a blend of resilience and upside potential.

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