Bank of America says investors can still find buying opportunities as companies prepare to report third-quarter results, which cover the July-through-September period. The bank named five buy-rated stocks across sports betting, nuclear energy, healthcare, discount retail and online services: DraftKings, BWX Technologies, AstraZeneca, Grocery Outlet Holding and Grab Holdings.

Each of the five companies faces its own set of challenges, but the bank sees reasons for their shares to rise in the coming months.

DraftKings

DraftKings (DKNG) is among the bank's most closely watched picks following a steep drop in its share price. Analyst Julie Hoover upgraded the sports betting company from Neutral to Buy and maintained a $27 price target.

The shares have fallen roughly 47% over the past year, and analysts say that decline has improved the balance between risk and reward. The bank also likes the company's push into prediction markets, where users trade contracts based on the outcomes of real-world events. Bank of America estimates prediction markets could generate about $400 million in fees for DraftKings in 2027, with market-making potentially adding further revenue on top. Risks include unclear regulations, competition and heavy spending.

BWX Technologies

BWX Technologies (BWXT) is another top pick, tied to demand for nuclear energy and defense technology. Analyst Ronald Epstein maintained a Buy rating following the company's September investor day, though he lowered his price target from $250 to $210.

According to the bank, BWX Technologies could benefit from new nuclear projects, national security needs and rising power demand from artificial intelligence. The company recently announced a $189 million contract to produce nuclear reactor fuel for the US Navy.

AstraZeneca

AstraZeneca earned a place on the list on the strength of its large drug development pipeline. The company is working on treatments for cancer, heart disease and other conditions, and upcoming trial results and possible regulatory approvals could move the stock. Its July 2026 update listed 183 development projects. Weak trial results, regulatory setbacks and competition could still weigh on revenue expectations.

Grocery Outlet Holding

Grocery Outlet Holding drew renewed attention after Bank of America upgraded the stock from Neutral to Buy. Analyst Robert Ohmes raised his price target to $15, pointing to better operations and a possible earnings recovery.

The discount retailer is improving its products and keeping prices consistent on delivery apps such as DoorDash, Uber Eats and Instacart. Investors are watching to see whether these efforts lift customer spending, same-store sales and profit margins.

Grab Holdings

Grab Holdings rounds out the list. The company offers ride-hailing, food delivery and financial services across Southeast Asia, and each of these business lines represents a potential source of growth. Grab reported record second-quarter results in August and raised its full-year outlook. It also announced a $750 million share buyback, a way of returning cash to shareholders. Currency swings, fuel costs and competition remain risks.

Outlook

The bank's outlook comes as investors contend with high interest rates and concerns about stock valuations. Strong results and solid guidance could support these five companies through the reporting period, while weak numbers could add pressure.

Attention now turns to whether management teams can deliver. BWX Technologies is set to report third-quarter results on November 2, with the remaining companies scheduled to report in the days that follow.