Bank of America's 16 Non-AI Stock Recommendations: Market Analysis and Investment Opportunities

This analysis is based on the Barron’s report [3] published on November 12, 2025, which highlighted Bank of America’s list of 16 non-AI stocks worth buying, along with sector ideas from Renaissance Macro. The recommendations focus on investment opportunities outside the artificial intelligence hype cycle, identifying companies that are “overshadowed” by AI-related stocks but offer compelling value propositions [3]. The publication coincides with a mixed market environment where technology-heavy indices underperformed, suggesting potential rotation away from AI-centric stocks toward value-oriented opportunities [0].

The recommendations were released during a notable market rotation on November 12, 2025, with major indices showing divergent performance [0]:

• S&P 500: -0.25% (closed at 6,850.92)
• NASDAQ: -0.67% (closed at 23,406.46)
• Dow Jones: +0.50% (closed at 48,254.82)
• Russell 2000: -0.51% (closed at 2,450.80)

The technology-heavy NASDAQ’s underperformance suggests investors were already rotating away from AI-centric stocks toward value opportunities, making Bank of America’s timing particularly relevant [0].

Bank of America’s recommendations followed specific screening criteria [1, 3]:

• Buy-rated stocks not directly linked to AI
• Positive earnings revisions over past three months
• Trading below 52-week highs
• Discount valuation relative to broader market

This systematic approach identifies fundamentally sound companies that may have been overlooked during the AI investment boom.

The 16 recommended stocks span multiple sectors, providing broad diversification [1]:

• Consumer Defensive
  : Dollar General (DG), Church & Dwight (CHD)
• Consumer Cyclical
  : Viking Holdings (VIK), Walt Disney (DIS)
• Financial Services
  : KeyCorp (KEY), Progressive Corp (PGR)
• Energy
  : ONEOK (OKE), Freeport-McMoRan (FCX), Eversource Energy (ES)
• Industrial
  : J.B. Hunt Transport Services (JBHT)
• Healthcare
  : Henry Schein (HSIC)
• Real Estate
  : Regency Centers (REG)
• Telecommunications
  : AT&T (T)

shows strong momentum with current price at $60.99 (+1.57% on November 12), impressive YTD performance of +39.21%, and remarkable 3-year gains of +133.68% [0]. However, it trades above analyst consensus price target of $54.00, suggesting potential near-term consolidation [0].

demonstrates strong recovery potential at $104.21 (+0.13% on November 12), with +37.79% YTD gains despite a challenging 3-year performance of -57.80% [0]. The stock offers 20.0% upside to analyst price target of $125.00 [0].

presents turnaround potential at $116.65 (+1.57% on November 12), with moderate +5.26% YTD performance but -13.92% decline over 5 years [0]. Analysts see 20.0% upside to $140.00 price target [0].

The recommendations align with broader market trends suggesting cooling AI enthusiasm. Recent news about AI contractor layoffs and pay cuts at companies like Mercor indicate potential moderation in AI sector hype [2]. This creates opportunities for traditional value stocks that have been overlooked during the AI investment boom.

The selected stocks generally trade at reasonable valuations, with most P/E ratios ranging from 18-32x, significantly below many AI-related stocks [1]. Several names trade 10-41% below their 52-week highs, offering attractive entry points [1].

The focus on stocks with positive earnings revisions over the past three months suggests improving fundamentals and analyst confidence [1, 3]. This earnings momentum could drive further outperformance as investors seek quality outside the AI sector.

: Several stocks like Viking Holdings trade above analyst price targets, suggesting potential near-term downside risk [0].

: Consumer discretionary names (Viking, Disney) face discretionary spending pressure, while industrial companies (J.B. Hunt) are exposed to economic cycles, and financial services (KeyCorp) are sensitive to interest rate changes [0].

: Retail discounters like Dollar General face competitive pressures and margin compression, energy companies are subject to commodity price volatility, and media companies like Disney navigate streaming profitability challenges [0].

: Continued rotation from AI-heavy portfolios could benefit these traditional value stocks as investors seek diversification and reduced concentration risk [0, 2].

: November historically has been strong for markets, supporting the timing of these recommendations [0].

: Positive earnings revisions suggest upcoming earnings reports could serve as positive catalysts for many of these names [1, 3].

: Earnings results and guidance updates, Federal Reserve policy decisions, consumer spending patterns [0].

: AI sector momentum effects, economic growth trajectory, competitive dynamics within each sector [0, 2].

: Structural changes in consumer behavior, technological disruption across traditional industries, regulatory environment impacts [0].

Bank of America’s 16 non-AI stock recommendations represent a strategic approach to value investing outside the AI hype cycle. The complete list includes AT&T (T), BGC Group (BGC), Church & Dwight (CHD), Dollar General (DG), Eversource Energy (ES), Freeport-McMoRan (FCX), Henry Schein (HSIC), J.B. Hunt Transport Services (JBHT), KeyCorp (KEY), McCormick & Company (MKC), ONEOK (OKE), Progressive Corp (PGR), Regency Centers (REG), Viking Holdings (VIK), and Walt Disney (DIS) [1].

The recommendations are based on systematic screening for buy-rated stocks with positive earnings momentum, attractive valuations, and trading below 52-week highs [1, 3]. While these stocks offer diversification benefits from AI-heavy portfolios, they still carry significant market and sector-specific risks that warrant careful consideration in the current uncertain economic environment [0].