The S&P 500 currently sits 14% below the all-time high of 4,793, which was reached at the end of 2021. However, if a Bank of America prediction is about to play out, new highs will be attained early next year.
BofA’s technical research strategist, Stephen Suttmeier, points to specific bullish indicators indicating that the S&P 500 could climb to 4,900 by next March. This represents a potential uptick of ~19% from current levels.
The signals Suttmeier is referring to revolve around breadth, or the level of involvement in upward swings among the underlying stocks that make up the markets.
“Upside breakouts for the weekly global advance-decline line of 73 country indices tend to provide a bullish trend continuation signal for US and global equity markets,” Suttmeier explained, pointing to some recent examples that back his case.
Meanwhile the analysts at BofA have an idea about which stocks are well positioned to take advantage of the anticipated rally. We ran a pair of their recent recommendations through the TipRanks platform to get a fuller picture. Here is what we found.
Cogent Communications (CCOI)
We’ll start with Cogent Communications, a US-based internet service provider operating on the international scene. Founded in 1999, Cogent quickly developed a reputation for growth through acquisition – more than a dozen such moves in just its first 5 years of operation – as well as for turning out the financially troubled internet carriers it bought.
The company has, in the last few months, gotten back to those roots by the purchase of the Sprint Wireline business from T-Mobile. The transaction – which included both a purchase price of $1 (you read that correctly) and mutual transfers of working capital between the companies – brings Sprint’s legacy network of US long-haul fiberoptics and an associated customer base into Cogent’s stable.
Today, Cogent mainly offers internet access and data transport across a high-end fiber optic network that reaches across North and South America, Europe and Asia, Africa, and Australia. The company operates over…