Bank of America has highlighted several companies it believes are positioned for meaningful upside, despite mixed performances across industries.
The Wall Street investment bank’s latest analysis names Levi Strauss, TKO Group Holdings, TransDigm, PACCAR, and Live Nation as stocks with long-term growth prospects supported by strong fundamentals and sector trends.
Levi Strauss expands beyond denim
Denim giant Levi Strauss is attracting renewed optimism from Bank of America analysts, who view the company as firing on all cylinders.
Analyst Christopher Nardone, after attending a recent investor meeting, pointed to multiple avenues for sustainable growth.
These include product expansion, direct-to-consumer momentum, and premiumization efforts.
While Levi’s is best known for its denim offerings, the bank sees significant opportunity in expanding into new categories.
“We see a significant opportunity for Levi’s to broaden its assortment beyond bottoms, with a focus on offering the consumer a full head-to-toe offering,” Nardone wrote.
Tariffs, which could pose risks to apparel firms, appear manageable in Levi’s case, with management implementing strategies to mitigate disruptions.
Shares of Levi Strauss are up 23% so far in 2025, underscoring investor confidence in the company’s direction.
TKO gains from media rights and live sports
Sports entertainment company TKO is also on Bank of America’s buy list.
Analyst Brent Navon noted that the firm is entering “the next round of growth,” driven by lucrative media rights deals tied to its WWE and UFC brands.
These agreements are expected to provide highly predictable revenues, underpinned by contractual escalators and attractive margins.
Beyond media rights, TKO is exploring new growth avenues, including the potential development of its own boxing league.
The company also benefits from its exposure to live events through ticketing revenues and site fees, as well as the global rise in popularity of live sports.
Shares of TKO have already rallied 31% in 2025, reflecting growing investor enthusiasm.
TransDigm, PACCAR, and Live Nation round out picks
Bank of America also highlighted opportunities in industrials and entertainment.
In the aerospace sector, analyst Ronald Epstein advised investors to buy the dip in TransDigm shares, which fell 12.5% in August following its fiscal third-quarter results.
Epstein called the selloff “overdone and dislocated from fundamentals,” adding that while near-term softness in original equipment demand is a concern, the long-term margin opportunity remains intact.
TransDigm shares are still up 11% in 2025 year to date.
Truck manufacturer PACCAR was also cited as a strong long-term performer.
Bank of America praised its track record of growing earnings and free cash flow while taking market share.
Analysts expect the current truck production downturn to bottom in 2025, with growth resuming next year on the back of a freight recovery and truck purchases ahead of new EPA emissions standards.
Meanwhile, Live Nation continues to benefit from global demand for live entertainment.
The bank called it a “multi-year growth story” supported by industry tailwinds and solid fundamentals.
Risks from a potential Department of Justice breakup have eased, leaving the company positioned for double-digit adjusted operating income growth in the years ahead.
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