Five stocks stand out heading into Friday, October 16, 2026, each carrying a bullish rating change issued on Thursday, October 15. Inflation data remains the main market driver. The S&P 500 fell 1.1% to 7,718.94 on October 14 and the Nasdaq dropped 1.9% after September consumer prices rose 3.7% from a year earlier. On October 15, the Producer Price Index showed wholesale prices up 1.3% for the month and 6.3% annually, while core producer prices rose 0.7% against a 0.3% forecast. September retail sales rose 0.8%, double the expected 0.4%. Fed Vice Chair for Supervision Michelle Bowman said the central bank could afford to wait and assess developments, and the next policy decision comes October 28.
The five ideas below span discount retail, banking, used-car retail, oil and gas production, and life sciences tools. Editorial notes only, not investment advice.
Walmart (WMT) – Deutsche Bank Upgrades the Retail Giant
Walmart was upgraded from Hold to Buy on Thursday by Deutsche Bank analyst Krisztina Katai, who raised her price target to $136 from $113. Walmart is the largest U.S. retailer by sales and runs a fast-growing e-commerce and advertising business. In our view, Walmart's grocery scale and low prices tend to attract shoppers when inflation squeezes household budgets.
Shares traded near $118.42 during Thursday's session, up about 1.95%, giving Walmart a market capitalization near $942 billion. The 52-week range runs from $98.88 to $135.16, the trailing price-to-earnings multiple is 42.85, and the dividend yield is near 1%.
Consensus reads strong buy, with 25 bullish and two neutral ratings among 27 tracked firms. The average price target of $132.33 implies roughly 12% upside, while the Deutsche Bank target implies about 15%.
Risks: Mizuho's David Bellinger cut his target to $125 from $130 on September 29. A rich valuation for a retailer, tariff costs, and slower spending by lower-income households remain factors to monitor.
Bank of America (BAC) – Baird Upgrades the Lender
Bank of America was upgraded from Neutral to Outperform on Thursday by Baird. Bank of America is the second-largest U.S. bank by assets, with large consumer banking, wealth management, and trading businesses. In our view, higher interest rates support lending income, and the stock trades at a modest earnings multiple.
Shares traded near $51.73 during Thursday's session, up about 0.65%, giving Bank of America a market capitalization near $362 billion. The 52-week range runs from $46.12 to $65.23, the trailing price-to-earnings multiple is 11.96, and the dividend yield is near 2%.
Consensus reads strong buy, with 15 bullish and two neutral ratings among 17 tracked firms. The average price target of $61.71 implies roughly 19% upside.
Risks: Several bullish firms trimmed targets on October 15. Morgan Stanley's Betsy Graseck cut to $61 from $67, Truist's John McDonald cut to $58 from $62, and RBC Capital's Gerard Cassidy cut to $60 from $65. Credit quality, deposit costs, and capital rules remain factors to monitor.
CarMax (KMX) – BofA Makes a Double Upgrade
CarMax was upgraded two notches, from Underperform to Buy, on Thursday by BofA analyst Alexander Perry, who raised his price target to $65 from $50. CarMax is the largest U.S. used-car retailer and also runs an auto lending arm. In our view, high new-car prices push more buyers toward used vehicles, which could help CarMax recover sales volume.
Shares traded near $52.09 during Thursday's session, up about 4.56%, giving CarMax a market capitalization near $7.4 billion. The 52-week range runs from $30.26 to $65.28, and the trailing price-to-earnings multiple is 24.46.
This is a contrarian call. Although the consensus label reads buy, only five of 15 tracked firms are bullish, with nine neutral and one bearish. The average price target of $58.80 implies roughly 13% upside, while the BofA target implies about 25%.
Risks: Barclays' John Babcock held Equal-Weight at $67 on September 30, and UBS's Joseph Spak held Neutral at $62 that same day. Loan losses at the lending arm, high borrowing costs for car buyers, and competition from online dealers remain factors to monitor.
Devon Energy (DVN) – Scotiabank Initiates at Outperform
Devon Energy drew a fresh Outperform initiation on Thursday from Scotiabank, part of a broad energy launch that also covered Diamondback Energy, Permian Resources, Expand Energy, and Antero Resources. Devon is a major U.S. oil and natural gas producer with large positions in the Delaware Basin. In our view, elevated oil prices and Devon's focus on shareholder returns support strong free cash flow.
Shares traded near $49.59 during Thursday's session, down about 0.66%, giving Devon a market capitalization near $55 billion. The stock sits near its 52-week high of $52.71 and well above its low of $31.47. The trailing price-to-earnings multiple is 11.77, and the dividend yield is near 2%.
Consensus reads strong buy, with 14 bullish and three neutral ratings among 17 tracked firms. The average price target of $57.34 implies roughly 16% upside. Morgan Stanley's Devin McDermott raised his target to $65 from $63 on October 15.
Risks: TD Cowen's Robert Hodges held Hold at $50 in March. A drop in oil prices, rising drilling costs, and geopolitical swings in energy markets remain factors to monitor.
Thermo Fisher Scientific (TMO) – Guggenheim Initiates at Buy
Thermo Fisher drew a fresh Buy initiation on Thursday from Guggenheim. Thermo Fisher is the world's largest supplier of laboratory instruments, research reagents, and drug development services. In our view, a recovery in biotech funding and pharmaceutical spending supports steadier demand for its tools and services.
Shares traded near $694.80 during Thursday's session, up about 3.21%, giving Thermo Fisher a market capitalization near $257 billion. The stock is trading at its 52-week high of $695.32, far above its low of $435.27. The trailing price-to-earnings multiple is 37.33.
Consensus reads strong buy, with 12 bullish and three neutral ratings among 15 tracked firms. The average price target of $642.60 sits below the current price. TD Cowen's Dan Brennan raised his target to $760 on October 13, implying roughly 9% upside, and Morgan Stanley's Tejas Savant raised his to $730 that same day.
Risks: The stock has run ahead of the average target. Federal research funding, drug pricing policy, and a premium valuation remain factors to monitor.
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