As dealmaking activity picks back up, Bank of America highlighted Domino’s Pizza and Universal Health Services among the most likely candidates for a potential merger or acquisition. M & A activity slowed down significantly in the few years after the pandemic, as the U.S. economy contended with higher interest rates and inflation. Now, a more pro-business regulatory environment has caused a rebound in activity, sending signs of optimism through the financial services industry. “U.S. M & A deals YTD through Oct. are tracking just 5% below last year’s levels, which annualized would suggest the best year for M & A since ’21,” Bank of America strategist Jill Carey Hall wrote in a Friday note. “Factors supportive of continued M & A include strong market returns, still-cheap valuations of small vs. large caps, reduced political/tariff uncertainty and still-narrow credit spreads.” Other analysts, such as Wells Fargo’s Mike Mayo, echoed her sentiment. During an interview on CNBC’s ” Power Lunch ,” he said he expected a sort of “domino effect” to take place . “You can dream the dream in this deregulatory environment. This is a more pro bank, pro business, regulatory environment, the most we’ve had in some time,” Mayo said. Bank of America’s Hall shared a list of large-cap stocks in the S & P 500 reflecting characteristics that have been attractive to suitors for a potential merger or acquisition. To be sure, it is not clear if any of these companies are in talks or have been approached about potential deals. To be included in the below table, stocks had to meet the following criteria: Trading below the universe median for Bank of America’s preferred M & A valuation metric, free cash flow to enterprise value. Hall added that she excluded financials and managed care companies from the screen, noting that such names are often not comparable on this basis for structural reasons. Have a market cap less than $15 billion. Have a history of stable earnings based on their S & P Quality Rankings (B or higher). Have expected long-term growth rates above the universe median. One name on the list was Domino’s Pizza. Shares of the pizza chain have slipped 2% this year. Last week, Mizuho initiated coverage of the name at an outperform rating. “DPZ has a clear value strategy in place that is leading to an expanding relative value proposition and sustained traffic share gains. Ownership of its supply chain largely insulates franchisee profitability, limiting franchisee resistance to a sustained focus on value,” the bank wrote. Mizuho’s $500 price target implies that shares of Domino’s could rally 25% from their Friday close. Bank of America also highlighted Universal Health Services. Shares of the healthcare management company have surged 28% in 2025. On Monday, Raymond James upgraded the name to an outperform rating from market perform. The investment firm’s $270 target price is approximately 19% higher than where shares of Universal Health Services closed on Friday. Raymond James analyst John Ransom pointed to the company’s third-quarter results that were above company guidance. “Note that we are raising our 2026 EBITDA estimate by ~7% and our 2027 EBITDA estimate by ~6% due to both improved operations + higher DPPs. Note that our 2026 and 2027 EBITDA estimates are now ~1.6% and ~1.8% above consensus (adjusted) respectively,” he wrote. Other names on Bank of America’s list included Match Group , Bio-Techne and Paycom Software .
