The top American stocks you can buy now.
In April, the International Monetary Fund cut its 2019 global economic growth forecast from 3.5% to 3.3% and its eurozone growth forecast from 1.6% to 1.3%. The IMF also cut its 2020 growth target for China from 6.2% to 6.1% as the trade war drags on. For U.S. investors looking to avoid the slumping international economy, these seven stocks are included in Bank of America’s US1 list of top American stocks, and each has at least 20% potential upside based on analyst price targets.
Next:Cigna Corp. (ticker: CI) Credit
(AP Photo/Matt Rourke)
Cigna Corp. (ticker: CI)
Cigna is both the largest pharmacy benefit manager in the U.S. and one of the largest managed care organizations in the world. Analyst Kevin Fischbeck says Cigna’s first-quarter earnings exceeded his expectations, and investor concerns over the performance of recently acquired Express Scripts are unfounded. He says Express expands capabilities and adds cash flow and earnings upside for Cigna. Cigna made wise use of its cash flow in the first quarter, paying down $1.9 billion in debt and repurchasing $462 million in shares. Bank of America has a “buy” rating and $258 price target for CI stock.
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The top American stocks you can buy now.
In April, the International Monetary Fund cut its 2019 global economic growth forecast from 3.5% to 3.3% and its eurozone growth forecast from 1.6% to 1.3%. The IMF also cut its 2020 growth target for China from 6.2% to 6.1% as the trade war drags on. For U.S. investors looking to avoid the slumping international economy, these seven stocks are included in Bank of America’s US1 list of top American stocks, and each has at least 20% potential upside based on analyst price targets.
Cigna Corp. (ticker: CI)
Cigna is both the largest pharmacy benefit manager in the U.S. and one of the largest managed care organizations in the world. Analyst Kevin Fischbeck says Cigna’s first-quarter earnings exceeded his expectations, and investor concerns over the performance of recently acquired Express Scripts are unfounded. He says Express expands capabilities and adds cash flow and earnings upside for Cigna. Cigna made wise use of its cash flow in the first quarter, paying down $1.9 billion in debt and repurchasing $462 million in shares. Bank of America has a “buy” rating and $258 price target for CI stock.
Salesforce.com (CRM)
Salesforce.com management guided for revenue to double over the next four years, putting CRM stock in rare company among large-cap growth stocks. Analyst Kash Rangan says the structural shift to cloud-based software makes Salesforce a long-term winner for investors. Rangan says Salesforce has opportunities to both gain market share and expand margins over time. He also says Salesforce can grow its addressable market by branching more into analytics, artificial intelligence, internet of things and commerce. Bank of America has a “buy” rating and $200 price target for CRM stock.
General Dynamics Corp. (GD)
General Dynamics is a U.S. defense company that specializes in combat vehicles and systems, armaments, munitions, shipbuilding systems and other defense systems and technologies. Analyst Ronald Epstein says investors can expect a strong second half of 2019 from General Dynamic’s aerospace systems segment. General Dynamics recently completed the acquisition of CSRA, which helped boost revenue by 22.9% in the first quarter. Epstein says General Dynamics’ strong balance sheet and cash flow clear the path to additional high-growth acquisitions in the future. Bank of America has a “buy” rating and $220 price target for GD stock.

Corning (GLW)
Analyst Wamsi Mohan upgraded Corning, an LCD glass maker, to “buy” with a price target of $40 on May 1. Mohan says Corning’s growth profile is stronger and more diversified than it has been in the past. Near-term investments have weighed on profit margins but have created margin expansion opportunities in the long term. The glass pricing environment is currently a tailwind for Corning.
Hess Corp. (HES)
Despite a difficult environment for oil stocks, Hess shares have soared more than 55% so far in 2019. Analyst Doug Leggate says there is still plenty of upside for Hess investors. Leggate says exploration prospects in Guyana and expanded fracking in the Bakken region support the Hess bull case. Hess has simplified and strengthened its balance sheet in recent years. Today, the combination of strong growth prospects and a $1.5 billion buyback make the stock an appealing investment, Leggate says. Bank of America has a “buy” rating and $82 price target for HES stock.
Target Corp. (TGT)
Target aggressively invested in its e-commerce platform in a difficult retail environment, and analyst Robert Ohmes says Target is one of a handful of discount retailers that are well-positioned to gain market share from their brick-and-mortar peers in coming years. Ohmes says Target shares got unjustly punished after Amazon.com (AMZN) recently announced free one-day shipping. Target has already made strides in one-day and same-day delivery, and Ohmes says the company’s collection of owned and exclusive brands differentiate and protect it from Amazon. Bank of America has a “buy” rating and $100 price target for TGT stock.
Tapestry (TPR)
Tapestry is the parent company of the Coach, Kate Spade and Stuart Weitzman brands and has carved out a unique niche of affordable luxury brands within the retail sector. Analyst Lorraine Hutchinson says a combination of sales growth at Coach, a turnaround at Kate Spade and margin expansion at Stuart Weitzman should produce both double-digit earnings growth and margin expansion for Tapestry in 2020. Hutchinson says Tapestry should continue to demonstrate strong earnings growth in the long term while it explores additional accretive acquisition options. Bank of America has a “buy” rating and $48 price target for TPR stock.
Great U.S. stocks to buy in a weak global economy:
Cigna Corp. (CI)Salesforece.com (CRM)General Dynamics Corp. (GD)Corning (GLW)Hess Corp. (HES)Target Corp. (TGT)Tapestry (TPR)1 of 10
Wayne Duggan, Contributor
Wayne Duggan has been a U.S. News & World Report contributor since 2016. He is an expert at ... Read more
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