BANK OF AMERICA: These 11 growth stocks are overowned and expensive

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Amazon CEO Jeff Bezos
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Getty / David Ryder

Bank of America Merril Lynch released a list of what its equity and quant strategy analysts view to be the most “overowned expensive growth stocks.”

The list is a part of a new report on equity strategies.

According to BAML, the “overowned” list includes companies that meet the following criteria:

“1) high projected long-term growth (top decile of the S&P 500 by consensus LTG),

2) expensive on valuation (top quintile of S&P 500 based on average rank of forward P/E, EV/Sales and P/B),

3) overweight by large cap active funds (as of our latest holdings data), and

4) negative 3-month consensus 2017 EPS revisions.”

The list ranges from tech giants like Alphabet and Facebook to game developer Activision. Check out the list of 11 stocks below:


Starbucks

Ticker: SBUX

Long Term Growth: 15.3

Price-To-Book Ratio: 15.8

Price-To-Earnings Ratio: 25.6

Enterprise-Value-To-Sales: 4.3

3 Month EPS Revision: -1%

Ownership (Relative Weight in Fund Holdings): 1.3

Source: FactSet, BofA Merrill Lynch US Equity & US Quant Strategy


Amazon.com

source
Sarah Jacobs

Ticker: AMZN

Long Term Growth: 27.4

Price-To-Book Ratio: 22.5

Price-To-Earnings Ratio: 110.8

Enterprise-Value-To-Sales: 3.3

3 Month EPS Revision: -6%

Ownership (Relative Weight in Fund Holdings): 1.9

Source: FactSet, BofA Merrill Lynch US Equity & US Quant Strategy


Netflix

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Netflix CEO Reed Hastings
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REUTERS/ Mike Cassese

Ticker: NFLX

Long Term Growth: 60.2

Price-To-Book Ratio: 23.0

Price-To-Earnings Ratio: 104.4

Enterprise-Value-To-Sales: 7.6

3 Month EPS Revision: -3%

Ownership (Relative Weight in Fund Holdings): 2.0

Source: FactSet, BofA Merrill Lynch US Equity & US Quant Strategy


Priceline Group

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Youtube

Ticker: PCLN

Long Term Growth: 17.3

Price-To-Book Ratio: 8.6

Price-To-Earnings Ratio: 23.4

Enterprise-Value-To-Sales: 8.6

3 Month EPS Revision: -1%

Ownership (Relative Weight in Fund Holdings): 2.7

Source: FactSet, BofA Merrill Lynch US Equity & US Quant Strategy


Pioneer Natural Resources Company

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Pioneer Natural Resources

Ticker: PXD

Long Term Growth: 15.0

Price-To-Book Ratio: 2.5

Price-To-Earnings Ratio: 53.7

Enterprise-Value-To-Sales: 6.3

3 Month EPS Revision: -11%

Ownership (Relative Weight in Fund Holdings): 1.6

Source: FactSet, BofA Merrill Lynch US Equity & US Quant Strategy


Regeneron Pharmaceuticals

Ticker: REGN

Long Term Growth: 19.1

Price-To-Book Ratio: 12.4

Price-To-Earnings Ratio: 37.3

Enterprise-Value-To-Sales: 9.7

3 Month EPS Revision: -3%

Ownership (Relative Weight in Fund Holdings): 1.6

Source: FactSet, BofA Merrill Lynch US Equity & US Quant Strategy


Intuitive Surgical

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Getty Images

Ticker: ISRG

Long Term Growth: 11.1

Price-To-Book Ratio: 9.1

Price-To-Earnings Ratio: 37.4

Enterprise-Value-To-Sales: 11.6

3 Month EPS Revision: 0%

Ownership (Relative Weight in Fund Holdings): 1.8

Source: FactSet, BofA Merrill Lynch US Equity & US Quant Strategy


Illumina

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Thomson Reuters

Ticker: ILMN

Long Term Growth: 14.1

Price-To-Book Ratio: 10.3

Price-To-Earnings Ratio: 44.5

Enterprise-Value-To-Sales: 10.4

3 Month EPS Revision: 0%

Ownership (Relative Weight in Fund Holdings): 2.2

Source: FactSet, BofA Merrill Lynch US Equity & US Quant Strategy


Alphabet

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Justin Sullivan/Getty Images

Ticker: GOOGL

Long Term Growth: 18.8

Price-To-Book Ratio: 4.7

Price-To-Earnings Ratio: 26.3

Enterprise-Value-To-Sales: 6.3

3 Month EPS Revision: 0%

Ownership (Relative Weight in Fund Holdings): 1.6

Source: FactSet, BofA Merrill Lynch US Equity & US Quant Strategy


Facebook

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Facebook CEO Mark Zuckerberg
source
Getty

Ticker: FB

Long Term Growth: 25.4

Price-To-Book Ratio: 7.2

Price-To-Earnings Ratio: 28.4

Enterprise-Value-To-Sales: 13.4

3 Month EPS Revision: -10%

Ownership (Relative Weight in Fund Holdings): 1.4

Source: FactSet, BofA Merrill Lynch US Equity & US Quant Strategy


Activision Blizzard

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Getty Images

Ticker: ATVI

Long Term Growth: 18.2

Price-To-Book Ratio: 4.9

Price-To-Earnings Ratio: 27.3

Enterprise-Value-To-Sales: 6.6

3 Month EPS Revision: 0%

Ownership (Relative Weight in Fund Holdings): 2.3

Source: FactSet, BofA Merrill Lynch US Equity & US Quant Strategy


SEE ALSO:

BANK OF AMERICA: Here are 23 of our favorite stocks