“The negative fourth-quarter gross domestic product (GDP) reading of -0.1% caught most Wall St. analysts and economists by surprise. This unforeseen number was skewed by a huge decrease in government spending. Most now expect the number to be revised to a positive reading, and the first quarter to show 1% to 2% growth. This slow growth scenario is just the right playing field for Bank of America Corp. (NYSE: BAC) secular growth stock picks.
In the past, when U.S. GDP growth was between 0% and 2%, the secular universe outperformed the rest of the Russell 2000 by 3.2% over the subsequent six months and by 7.2% over the next 12 months. The Bank of America/Merrill Lynch team screened the Russell 2000 and the Russell Midcap looking for stocks that met their secular growth definition. These are names with lower-than-average variability of earnings, and they are expected to deliver 10% to 20% earningsgrowth over the next three to five years.
We looked for the top four stocks in their small and midcap secular growth universe with the highest earnings growth rates. In the mid cap stocks, the top four stocks Bank of America has a Buy rating on are….”
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