Stocks That Bank of America Expects to Rise in October

October 2025 Stocks: Bank of America's Recommendations

After a turbulent September, investors are preparing for a more cautious start in October. Bank of America analysts shared three stocks they expect to perform well this month. In September, the S&P 500 index gained approximately 3.5% due to the Fed’s 25 basis point interest rate cut, while the Nasdaq and Dow Jones indices also recorded similar increases.

Investor Psychology and Market Expectations

Investors continue to observe uncertainties regarding the interest rate path and the trajectory of inflation. October is expected to play a crucial role in shaping the market outlook, with major companies' earnings reports during the third-quarter earnings season for both individual and institutional investors. The future of the Fed's policies and the market's demand outlook may directly affect investor risk appetite.

Bank of America's Favorite Stocks

Analyst Michael Feniger shared his optimistic views on CRH, a construction and building materials supplier. Feniger pointed out that the company's past successes in value creation and the opportunities created by low interest rates have increased its growth potential. He also emphasized the company's strong free cash flow capabilities: “As we see an organic growth trend, significant portfolio options, and a multi-rerating story over time, we have begun to keep a close watch on CRH.”

Lorraine Hutchinson has an optimistic outlook for Birkenstock, evaluating the company's efforts to reach young consumers with new products. Hutchinson noted that growth opportunities in the Asia region are also significant: “We remain optimistic about BIRK's potential for mid-high single-digit sales growth with an EBITDA margin above 30%.”

Analyst Jessica Reif Ehrlich shared her positive views on Disney, emphasizing that the company's fundamental trends appear stable. Ehrlich noted that ESPN’s new direct-to-consumer services have made a positive impact and rated Disney's growth perspective as “Buy.” Additionally, the Experiences segment, which includes cruises, was expressed to have strong potential.

The stocks selected by Bank of America for October present potential opportunities for investors. However, it should be remembered that market uncertainties and the overall economic outlook should be monitored closely.