There appears to be an economic rebound taking place — and history shows ways to play it in the market, according to Bank of America. “It’s official: we’re in a Recovery,” wrote strategist Savita Subramanian in a note to clients Sunday. While Subramanian noted the past few years have not felt like a well-defined “cycle,” the firm’s U.S. regime indicator improved for its second consecutive month in August. That means the tool is showing a recovery phase, she said. An average recovery lasts...

C3.ai , artificial intelligence’s namesake in the stock market, appears not to be getting a boost as the technology takes off, according to Bank of America’s analysis of the company’s Wednesday earnings. “Results do not suggest that C3 is benefiting from growing demand for AI,” analyst Brad Sills said of the company, which trades under the ticker AI. “Metrics such as average total contract value ... and largely unchanged FY24 revenue outlook do not point to any meaningful AI tailwinds...

A recent sell-off in airline stocks has created an attractive entry point — but investors should be careful about which names they buy, according to Deutsche Bank. Airline stocks have pulled back about 15% since peaking in mid-July, analyst Michael Linenberg told clients in a note released Monday. That comes as investors attempt to gauge how rising fuel prices, increases in domestic capacity and macro economic uncertainty will impact these companies. In this environment, Linenberg reiterated...

Splunk could see huge gains ahead amid rising demand in the machine data processing and analytics space, according to Bank of America. Analyst Brad Sills named the cloud stock a top pick, while raising his price target by $20 to $150. Sills’ new target implies shares could surge 50.1% in the next year from Wednesday’s close. “Splunk is one of the leading solutions to address this emerging market segment, with disruptive technology, high customer ROI, and rapidly expanding customer base,”...

Investors want to get ahead of a potential rally on shares of Strategic Education as the company’s earnings strengthen, Bank of America said. Analyst Heather Balsky upgraded the education stock to buy from neutral while pulling back her price target by $9 to $90. Still, Balsky’s price target suggested a 23.9% upside from Thursday’s close. “We see upside to sales and margins driven by its post-COVID recovery, improved marketing effectiveness, and tight cost control,” she said in a note to...