Bank Of America's Top 10 U.S.-Driven Ideas

Derek Harris of Bank of America introduced the firm's top 10 U.S. trading and investment ideas for the first quarter of 2015. The list includes eight Buy rated calls, along with two Underperform calls across eight different sectors. The recommendations are intended to remain for one quarter, though some names could be chose again for the following quarter.

The Buy recommended names include:

• AK Steel Holding Corporation AKS as the company is expected to swing to a positive cash generation in 2015 following five years of losses despite concerns over falling steel prices.
• Citigroup Inc C may be granted permission to buy back stock this year, which the company would likely do so below tangible book value, accelerating the rate of share growth.
• Community Health Systems CYH may outperform its peers in the first quarter given it is the most levered name to Health Care Reform.
• Walt Disney Co DIS is attractive due to its improving Studio outlook, accelerating Parks, improving capital returns, solid Media Networks and better Interactive.
• Kraft Foods Group Inc KRFT is likely to outperform driven by sequential improvements in earnings quality beginning with its fourth quarter earnings report and potential “value enhancing” changes to its operations in early 2015.
• Qorvo, Inc. QRVO is a “new, better way” to play RF/mobile and could see investors who were reluctant to invest in RF Micro Devices and Triquint Semiconductor acquire shares.
• Robert Half International Inc. RHI is likely to outperform as continued labor and macro data will drive upside.
• Signet Jewelers Ltd. SIG likely benefited from strong holiday sales and will likely see market share gains as the company continues its integration of recently acquired Zale.

Related Link: This Nuveen Analyst Just Released His Top 10 Predictions For 2015

The Underperform names include:

• Consolidated Edison, Inc. ED may see potential downside based on valuation as investors “may lose interest in defensive names” and regain a “risk appetite.”
• Foot Locker, Inc. FL may see potential downside if the company assumes a more promotional stance. The analyst notes that clearance in performance and offcourt basketball items seen by Finish Line Inc FINL recently is a sign a promotional environment will persist throughout 2015.