Shares are off to a scorching begin for the 12 months, and Financial institution of America analysts suppose some buy-rated names of their protection universe can carry that momentum via the remainder of 2023. The S & P 500 is up greater than 5% in January, on tempo for its finest begin to a 12 months since 2019. Slowing inflation metrics and China’s reopening are two contributing components driving the expansion within the broader market index within the early a part of the 12 months. Such a robust begin might be a promising signal for what’s to come back. CFRA chief funding strategist Sam Stovall famous that , following a optimistic January, the market has continued to rise for the remainder of the 12 months greater than 85% of the time. These occasions, the S & P 500 has averaged an annual achieve of about 11.5%, in keeping with knowledge going again to World Conflict II. To make certain, the query nonetheless stays as to how a lot the Federal Reserve will increase rates of interest with the intention to fight inflation, which continues to be greater than double the central financial institution’s goal price of two%. Nonetheless, Financial institution of America requested its analysts to interrupt down their prime picks for 2023. In keeping with them, these firms are poised to do nicely this 12 months. The agency mentioned that it compiled its listing via an “casual survey” of its senior analysis analysts and spans throughout varied sectors. Check out 5 of the shares that made Financial institution of America’s listing: Raytheon Applied sciences Raytheon Applied sciences , which is the mixed entity ensuing from the merger of Raytheon and United Applied sciences, was chosen given its “important breadth and depth” throughout the aerospace and protection trade. “Upside dangers are if the industrial aerospace and enterprise aviation jet recoveries are higher than anticipated, earnings might fare higher than our projections,” Financial institution of America famous. “Draw back dangers to PO are a downturn in industrial aviation because of the pure enterprise cycle or an exogenous occasion equivalent to a terrorist assault or a pandemic.” Financial institution of America has a worth goal of $120 per share, implying upside of about 20% from Monday’s shut. Raytheon shares have grown 10% previously 12 months. Nonetheless, the inventory has dipped virtually 2% 12 months to this point. Amazon Tech big Amazon additionally made the listing, with Financial institution of America noting it’s “nicely positioned to capitalize on the worldwide progress of eCommerce and different secular traits equivalent to cloud computing, internet marketing and related units.” The agency set its worth goal at $135, which suggests upside of 34% from Monday’s shut. Amazon shares have rallied virtually 22% for the reason that begin of 2023. Nonetheless, they fell practically 50% in 2022. AMZN 1Y mountain Amazon in previous 12 months Deckers Footwear designer and retailer Deckers made the listing partly on account of its robust model portfolio, which incorporates the Hoka and Ugg shoe manufacturers. “We imagine DECK has important EPS progress alternative on account of quickly rising HOKA model consciousness, modest share positive factors from UGG, and share repurchases,” wrote analyst Christopher Nardone. Financial institution of America in November highlighted Hoka because the “crown jewel” for Deckers, estimating that the operating shoe model’s income will develop to $2.2 billion by fiscal 2025. Decker’s shares have gained 5.25% so far in 2023, and a whopping 31.19% within the final 12 months. Domino’s Pizza The world’s largest pizza supply firm was chosen by Financial institution of America on account of its promising progress potential. “We imagine DPZ will proceed to be a beneficiary of the quick rising pizza phase with its giant scale, first mover benefits, and a protracted progress runway within the US and internationally,” analyst Sara Senatore wrote. Domino’s shares have fallen roughly 22% over the previous 12 months partly on account of larger price struggles and driver shortages. Ferrari Luxurious sports activities automotive producer Ferrari “is a novel asset, with resilient monetary efficiency, important intangible model worth, and a real luxurious standing,” in keeping with Financial institution of America. The agency underscored Ferrari’s model worth as a big driver of income exterior of auto gross sales. Analyst John Murphy additionally famous that the automaker’s “balanced technique of quantity progress, worth will increase, and new mannequin introductions over our forecast interval ought to drive outsized income and earnings progress.” Ferrari shares have jumped about 13% this 12 months and 14% previously 12 months. —CNBC’s Michael Bloom contributed to this report.