- Chris Nardone, a top-ranked analyst at Bank of America, shares his top stock picks.
- Nardone has been bullish on Crocs, predicting further upside partly due to conservative projections.
- He also favors Ralph Lauren, citing strong international growth, especially in Asia.
When Chris Nardone started working at Bank of America out of college in 2013, he wasn’t even in the firm’s equity research department.
Working initially as a risk analyst, he knew he wanted to shift gears and eventually stepped into a research analyst role after listening in on the team’s daily calls.
"It became very apparent to me that the skillsets that you essentially use every day in this role — whether that's modeling, writing, and then as you build your career, the interpersonal aspect of the job, and then ultimately being very interested in stocks — you put that all together, it seemed like the dream job for me," Nardone said.
The change has worked out well for Nardone. According to TipRanks, he is ranked in the top 8% of analysts, and his recommendations lead to profits 72% of the time for an average return of over 21%. Nardone was also recently named to Business Insider's 2024 list of rising stars of equity research.
Nardone first started on Bank of America's banks team, but a few years ago moved to its apparel and footwear team, where he's now a director. In a recent call with Business Insider, he shared his top two stock picks right now.
Nardone's top 2 stock picks
Nardone's first pick is the footwear brand Crocs (CROX). Nardone has been bullish on the stock since early 2024 when it traded below $90 per share. It has risen 82% since January lows and is up 37% over the last year. Meanwhile, the S&P has risen 24% over the last 12 months.
Despite the outperformance, Nardone is still bullish on the stock, though it's approaching his price target of $160, slightly higher than current levels.
As the stock has surged in recent months, Nardone has lifted his price target multiple times, accurately forecasting upside. It's unclear if he will do so again as the rally continues.
One reason Nardone likes the stock is that he believes the company's sales and profit projections for the second half of 2024 could be too conservative. Another is that Terence Reilly, who is a former CEO at both Crocs and Stanley, is now at the helm of the shoe brand Heydude, which Crocs bought a few years back.
Second, Nardone is bullish on luxury apparel company Ralph Lauren (RL). The stock has also enjoyed a massive rally, rising 54% over the last 12 months to $186 a share. Nardone's price target is $207, representing 11% upside.
Investor skepticism around the stock was high last year, Nardone said, as much of its sales come from Asia and Europe, where there has been macroeconomic volatility. But as the company has beat earnings estimates, its shares have skyrocketed. Nardone believes profit margins estimates could still be understated, setting the stock up for future upside.
"International growth, particularly in Asia, has been extremely robust," he said. "This is actually a catalyst that we think will continue over the next several years, with Asia being their fastest growth market."
In the US, the company has reduced its partnerships with lower-cost retailers and put more emphasis on expensive, higher-quality products, helping the brand's credibility.
"You're seeing the brand on a lot more celebrities. Stuff like that is funny to say out loud, but it truly does create the buzz," Nardone said. "It never hurts when Taylor Swift is on the cover of magazines rocking Ralph."