Bank of America Names Five Stocks to Buy Before Earnings, Including an 11.6% Yield Play

As Q2 earnings season kicks off this week, Wall Street is flooding the zone with previews. Bank of America released a July 11 note flagging stocks with upside ahead of their reports. At the same time, high-dividend and cash-flow plays are getting more attention. With markets closed over the weekend, all prices are as of the July 10 close.

Bank of America's Five Pre-Earnings Picks

Bank of America's July 11 report calls out several companies poised to deliver strong quarterly results. According to CNBC, the bank sees room for IBM to run into its report. Other "buy" rated names include Spotify (SPOT), IHG Hotels & Resorts (IHG), Grab Holdings (GRAB), and Deutsche Bank.^[CNBC]

BofA analyst Jessica Reif Ehrlich is bullish on Spotify ahead of its early August Q2 print. "We believe Spotify's Q2 2026 results will reflect stable KPI trends, with revenue growth accelerating thanks to easing FX headwinds," she wrote.^[CNBC]

High-Dividend Play: 11.6% Yield and a Discount

On the dividend front, Forbes on July 11 spotlighted the Liberty All-Star Equity Fund (USA). This closed-end fund holds top U.S. names like Nvidia and Microsoft and currently yields 11.6%. Forbes notes the fund has performed well over the past decade but trades at a 12.9% discount to NAV, potentially offering a compelling entry for income and growth seekers.^[Forbes]

Forbes author Michael Foster describes the current U.S. economy as a "quiet boom." He cites data showing real incomes have risen for every generation over the past century; U.S. disposable income has doubled over the last 40 years to over $11,000 annually; and unemployment sits at 4.2%. Yet consumer confidence lags, which Forbes attributes to higher inflation expectations and pandemic-era financial memories.^[Forbes]

Barron's: Dividend Stocks Flashing Buy Signals

Barron's also turned its focus to dividend stocks on July 10, arguing that now may be a good time to buy names like Clorox (CLX) and Verizon (VZ). The report says these stocks are flashing buy signals.^[Barron's]

According to Barron's data, Clorox (CLX) rose 3.75% on July 10, while Verizon (VZ) gained 1.41%.^[Barron's] As of the July 10 close, Bank of America (BAC) last traded at $59.67, up 0.71% (+$0.42) from its prior close of $59.25. The stock opened at $59.64, hit a high of $59.87, and a low of $59.39. With markets closed for the weekend, there are no pre-market or intraday moves.

Big Bank Earnings Preview: Consumer Spending Is the Engine

As earnings season approaches, expectations are building for big banks. Yahoo Finance on July 10 predicted that bank profit engines will "roar" into earnings, driven by Main Street's continued spending. Despite macro uncertainty, resilient consumer spending should underpin core banking businesses like credit cards and lending.^{[Yahoo Finance]}

Separately, Barron's July 10 market roundup noted that U.S. stocks edged higher on Friday, with SK Hynix's U.S. market debut grabbing attention. Markets are now focused on the week ahead, which brings inflation data and the start of big bank earnings season.^[Barron's]

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